Court ruling allows drug makers to set their own prices
Most of the Pharma Sector stocks were at upper limit today as PSX continued in bullish momentum and cross 68k level.
The Lahore High Court has lifted a stay order on deregulating drug prices, giving pharmaceutical companies more control over pricing. This is a positive development for the industry, which has been struggling with low profitability due to high inflation and currency devaluation.
Previously, companies could only raise prices for non-essential drugs by a set amount each year. Now, they will be able to adjust prices based on their costs.
This is expected to lead to improved profitability and potentially new product launches in the sector.
recall that;
The government had approved deregulation of non-essential drug prices in February 2024. However, a court order put a temporary hold on the decision.
Under the 2018 pricing policy, drug prices were linked to inflation, but companies faced limitations on how much they could raise prices.
Note: A detailed court order is awaited.
