Another multinational exits Pakistan as Novartis hands over business to M&P affiliate
M. Waqar Bhatti
Karachi – In yet another blow to Pakistan’s shrinking multinational pharmaceutical footprint, Swiss-based global pharmaceutical giant Novartis has formally transferred ownership of its business in Pakistan to International Investment II Limited, an affiliated company of Muller & Phipps Pakistan (Private) Limited (M&P). While the company says operations will continue under the same legal entity, the decision effectively marks the end of Novartis’ direct presence in the country.
This development, announced Thursday in Karachi, follows the exit or scale-down of several other multinationals in recent years, including Sanofi and Eli Lilly, due to mounting regulatory and financial challenges. The trend reflects growing concern over Pakistan’s deteriorating investment climate in the healthcare and pharmaceutical sectors.
According to the official agreement, Novartis’ Pakistan operations — including manufacturing and distribution — will now be managed by M&P’s affiliate, ensuring continued supply of its innovative treatments. The agreement also guarantees job continuity for all current Novartis Pakistan Private Limited (NPPL) employees, who will retain their roles and compensation packages under the new ownership structure.export and import business
Speaking at the signing ceremony, Kevin Zou, Head of Asia Aspiring Markets at Novartis, emphasized that patient access and employee well-being were at the heart of the transition. “This agreement represents our unwavering commitment to the patients and healthcare professionals of Pakistan. Continued supply of innovative therapies and fair treatment of employees have been central to this transition,” he said.
Executives from both parties — including Raymond Simkins, Group President of International Investment II Limited, Director Christopher R. Boffey, and M&P CEO Kamran Nishat — reaffirmed their confidence in the deal and expressed optimism for the next chapter of Novartis’ legacy in Pakistan, which began nearly three decades ago in 1996.
While Novartis is not exiting the market entirely, its decision to relinquish direct control is seen as part of a broader global strategy to reduce operational burdens in markets where regulatory uncertainty, rupee volatility, and pricing controls have made business increasingly unviable for foreign players.
Industry experts noted that the shift reflects how difficult it has become for multinational firms to maintain operations in Pakistan without local partnerships. With mounting import restrictions, currency devaluation, delayed regulatory approvals, and chronic payment backlogs, many international pharmaceutical companies are re-evaluating their positions in the country.
The collaboration with M&P — one of Pakistan’s largest healthcare logistics and distribution networks — is expected to offer operational continuity and help navigate the complexities of the local market. For healthcare professionals and patients, the continuation of supply for essential therapies, particularly those used in cancer, cardiology, and rare disorders, provides some much-needed relief.
Despite this reassurance, the departure of yet another multinational from direct operations underscores the urgent need for policy reform. Stakeholders have long called for a more predictable and transparent regulatory framework to retain foreign investment and ensure access to life-saving therapies.
As Novartis becomes the latest name on a growing list of global pharmaceutical firms withdrawing or scaling down in Pakistan, the implications for innovation, research, and advanced medical access in the country grow even more serious. Whether local affiliates can uphold global standards and meet public health needs in the long term remains to be seen.
