Kathmandu:

Health, education and environment are the biggest challenges facing the third world. Health, education and environment are correlated and that is the reason that these three should be addressed simultaneously.

Following the restoration of democracy, Nepali health sector has grown significantly which has been reflected in the increased nu-mber of hospitals, health posts, nursing homes, and pharmaceutical companies.

Still whether the benefits of the improved health care system in the country has reached the common man or not remains to be answered yet. It is an apprehension that professionals allied to the sector must allay with facts.

Nepal started its own pharmaceutical production with the establishment of Royal Drugs Ltd long back. The aim then was just to produce very common medicines to treat diarrhea and dysentery, cough and cold, and common infections. During that time, Nepali pharmaceutical sector was completely dominated by India-based multinationals.

For years, government policies were not very encouraging for the domestic industry and no vision was forthcoming towards the developmental of local industry. Policy makers were sure that the road to future lay through the governmental sector alone and no privatisation was ever thought of.

During the time there was unidirectional flow from India and very little medicines were reaching us through aid agencies. Whatever little did reach us, were mostly considered out-dated in

the world market. Later, just before the commencement of democracy, the private sector started its preliminary activities in pharmaceuticals sector.

The mechanism started with the repacking concept, where raw materials were formulated for configuration of silhouette only. Nothing much was done towards research and development, while the regulatory body addressed things through a very prilimnary module. On the flip side, this forced the private sector to grow with a very low investment.

Following the installation of democracy, revolution in the world of information, blending of technology and drug delivery system, manufacturing of high tech molecule/ essential molecules were worked upon very seriously. This has ensured high investment, as private banks too came forward. During this period, promoters were mostly from pharmaceutical trading background and marketing, having the experience of selling the products of Indian or India-based multinationals.

The major focus was upon the market led by Indian products. The number of domestic companies rose to 30 to 35 whose share of the local market rose to 30 per cent. The market share however has remained stagnant for years now. Despite the increase in the number of Nepali companies, market share did not rise as technology more often than not, outpaced Nepali products. Technology travelled fast and it usually reached us th-rough their franchisees that were active in the sub-continent, particularly in India.

Now a new group of pharmaceutical investors with new benchmarks, concepts and dynamism are setting up shop in Nepal, with an aim to produce medicines of international standard. No longer satisfied with merely producing saline and injections, this young brigade is honing to set up Nepal-based pharmaceutical multinationals.

(The writer is marketing manager— National, at the Sumy Pharmaceuticals.)