KARACHI, April 16: A leading multinational drug company has called it a day, decided to pack up and leave Pakistan. MSD (Merck Sharp & Dohme) has wrapped up their business in Pakistan by selling the company to a local pharmaceutical OBS (Organon Bio Sciences).

No formal public announcement was received by Dawn from the company but our sources in the pharmaceutical sector confirmed the news. Senior officials in the ministry of health were also not informed regarding the development that was conveyed to the employees at a meeting on Tuesday in a local hotel in Karachi.

The details of terms and conditions of the transaction were not known as the head of the company was not available for comments. A few disenchanted employees of the company called up Dawn to tell the tale of their woes on Tuesday.

“For us it was a bolt from the blue. We had no clue about the decision. We learnt about it in the meeting of all employees flown in from all stations. It was announced by a senior regional manager of the principal. We were told that from the next day we will be on the pay roll of OBS in place of MHD,” an employee told Dawn over phone, who did not want to disclose his identity.

“I do not think they could have violated any rules in this regard. The multinationals are very particular about following the laid down rules and procedures,” a business adviser working for a group of foreign companies said commenting on the situation.

“I see it as a purely economic decision. The company was in trouble. It was not able to market successfully its new expensive products in Pakistan as their generic versions were available cheap,” said Qaisar Waheed when contacted to know possible reasons for such an extreme decision.

A delegation of Pharma Bureau will meet the Federal Minister of Information Sherry Rehman on Thursday, our sources in Islamabad confirmed. The officials of the ministry of health said that they hoped to learn about the deal there.

The high ranking officials of the ministry told Dawn that it had not yet received any information regarding any such development. Dr Fernaz Malik, Drug Controller, told Dawn from Islamabad that the news had not surprised her as the share of multinational companies had been receding in Pakistan with local companies gaining strength. She said that from 80 per cent the share of multinationals has come down to 45 per cent in Pakistani market over the last twenty years.

“We have not ganged up against them, we have beaten them at their own game through open competition in the market,” said a managing director of a local booming drug company, who wished not to be named.

“No, the decision has nothing to do with the issue of trust deficit of the corporate sector on the capability of a democratic government. In multinationals a decision of this nature involves a long-drawn process.”

They are wrapping up because their profit margins and volumes plummeted due to emergence of an efficient local industry in the country. The weak Pakistani currency must have added to their woes,” said another expert on pharmaceutical industry in Pakistan.

“To me the exit will not stop here. There are many others contemplating on the issue. From what I know Bristol Myer Squibb will also leave this year as decision to this effect has already been taken by the principal.

There are 20 operations that they have decided to close, Pakistan is on the list,” informed another expert.

“We need not be alarmed about multinationals leaving Pakistan. See what is happening in India. Indian drug sector has not only evicted multinationals from the market but they have actually made inroads in the US and European markets on the strength of their competitiveness,” Dr Farnaz told Dawn from Islamabad over telephone.