Islamabad: Yet another multinational pharmaceutical company has decided to shut down its operations in Pakistan, as Danish drug maker Lundbeck on Wednesday announced that it would cease business in the country by November 30, 2025, citing global investment priorities and an unviable business climate.
The company, which manufactures medicines for psychiatric and neurological disorders, informed doctors through an official communication that supply of key products including Brintellix, Cipralex, Cipram and Ebixa would continue only until existing stocks last, while supply of Clopixol, Clopixol-Acuphase, Clopixol Depot and Fluanxol Depot would be maintained until June 2026 or earlier if inventories are exhausted.
The company advised doctors to shift patients to alternative therapies as its operations wind down.
Lundbeck’s exit adds to a growing list of global pharmaceutical giants that have already wrapped up their direct operations in Pakistan over the last three years.
American insulin manufacturer Eli Lilly, German drug maker Fresenius Kabi, French multinational Sanofi, and German health giant Bayer all divested or sold their businesses between 2022 and 2023, while Pfizer followed in 2024 by selling its manufacturing plant and portfolio to Lucky Core Industries.
Earlier, companies like Merck Sharp & Dohme (MSD), Bristol-Myers Squibb, Roche and Johnson & Johnson had also either closed down or transferred their businesses to local players. Together, these departures have signaled shrinking confidence of multinational drug makers in Pakistan’s pharmaceutical market.
Industry officials say the reasons behind this steady exodus are rooted in Pakistan’s harsh economic and regulatory environment. Persistent rupee depreciation, high inflation and skyrocketing import costs have made it impossible for multinationals to maintain operations under strict government price controls.
Most of these companies rely heavily on imported raw materials and finished products, and with over 90 percent of active pharmaceutical ingredients being imported, currency volatility has wiped out profitability. At the same time, overlapping regulations, sluggish approvals and heavy taxation have further undermined investor confidence.
“You cannot expect global companies to sustain losses indefinitely while their costs rise and the government refuses to allow realistic price adjustments,” said a senior industry source.
Analysts point out that while local pharmaceutical firms now dominate more than 70 percent of the domestic market, the retreat of multinationals deprives patients of access to newer, innovative medicines for cancer, diabetes, neurological and autoimmune diseases.
Doctors warn that the absence of global players could slow down the introduction of breakthrough therapies in Pakistan, leaving patients dependent on older generics or imports through irregular channels. The situation is compounded by an already fragile supply chain, frequent shortages and delays in drug registrations.
Experts say the exit of multinational pharmaceutical companies is not just a commercial decision but a reflection of Pakistan’s deteriorating economic conditions and inconsistent health policies. Unless the government introduces rational pricing reforms, incentivises investment in local manufacturing of raw materials, and ensures regulatory predictability, more global players may follow suit.
For patients and doctors, Lundbeck’s departure is another reminder of how fragile access to essential and innovative medicines has become in Pakistan.
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