Bangladesh market offers vast opportunities to leading Indian active pharma ingredient and intermediate manufacturers. The market is opening up in a big way and the concentration of global companies setting up presence in Bangladesh is also increasing. But the demands from the region is limited to formulations imports, which indicate that there is a huge potential for bulk drugs. The pharma industry in Bangladesh is the second largest revenue earner to the government's exchequer.
The region has a fairly huge formulation business with several multinational companies and local units dominating the market. The total number of units in the region are around 300 and therefore a comprehensive range of bulk drugs are sourced for the formulations development.
The range of bulk drugs are usually sourced from China and India. However bulk drugs from China are preferred by the local units because of the low prices. But the multinational companies insist on quality standards and that is where bulk drugs from India pharma companies stand to gain.
It is possible for bulk drug manufacturers from India to trade in the region only if their range of drugs figure in the Block List compiled by the Bangladesh Pharma Association. That is why it is crucial for the exporters to have a constant rapport with the industry and related trading agencies in Bangladesh.
The country being a signatory to the Doha Agreement, can manufacture drugs under patent up to 2016 and sell it to developed countries. Bulk drug exporters could capitalize on the advantage.
The pharma industry in Bangladesh is growing at 15 percent annually. The leading players are Beximco Pharmaceuticals, Amico Laboratories, Square Pharmaceuticals, Aristopharma, ACME Laboratories, Eskayef Bangladesh, Incepta Pharmaceuticals to name a few.
It is the World Trade Organization (WTO) norms which have thrown up immense opportunities in trade. While a large number of manufacturers are dealing with only finished patented drugs, there are a handful of bulk drug producers and therefore Indian companies stand to gain. However many Indian companies are reluctant to enter the region because the rates are not remunerative, informed industry sources.
The leading players from India who continue to have a presence are Bal Pharma, Micro Labs, Biocon, Aurobindo Pharma, Sun Pharma, Ranbaxy, Lupin Ltd and JB Chemicals.
Our Mumbai Bureau adds: Many Bangla companies now locally manufacture a good number of APIs. However, compared to large local demand, more API industries are needed to be set up. Pharmaceutical industries' potential has multiplied with the recently approved API industrial park in Munshigonj.
The API can save at least 70 per cent of the cost of import of pharmaceutical raw materials from aboard. Every year skilled professionals at home and abroad are joining the industry's human resources pool.
Currently, bio-equivalency tests are conducted in Singapore, Malaysia and in European countries, resulting in some hefty operational expenditures on the part of pharmaceutical industries. More investments in these sub-sectors would be needed in future. Foreign investors can take advantage of the flourishing industry.