Bangladesh may not stand out as a viable manufacturing location for Indian pharmaceutical companies for patented products although no production of such products will be possible now in India. Bangladesh has to introduce IPR regime only from 2016 as it is classified as a least-developed country by WTO.
When contacted by Pharmabiz, several Indian companies found that the Bangladesh option is logical but pointed out that it was not at all feasible on account of extremely small market for innovative products in Bangladesh and its neighbouring markets.
"First of all the market for innovative drugs in Bangladesh is not lucrative, therefore it will not be feasible for Indian companies to manufacture and market patented drugs in Bangladesh. Secondly, there is hardly any unregulated country (which is yet to implement product patent regime) around Bangladesh. Therefore the export market to other unregulated markets from Bangladesh also looks bleak," said Swati Piramal, director, Strategic Alliances & Communications, Nicholas Piramal India Ltd.
"It is not viable to set up a factory, with relevant human resources in Bangladesh just to manufacture and market drugs that have been launched worldwide between 2001 and 2005," said Shirish Mody, director, JB Chemicals and Pharmaceuticals Ltd.
"There is enough competition for Indian companies from their Bangladeshi counterparts, the political environment is not too conducive, besides there could be roadblocks regarding the repatriation of money back home," opines Rajeev Lamba, vice president - International Business, Unichem India.