Bangladesh is fast becoming an active pharmaceutical ingredient (API) market for Indian pharma companies and also an important part of the South Asia market business development plan.
The main reason for this is due to the fact that companies in Bangladesh have an aggressive formulation production strategy and are looking at India for the supply of bulk drugs. Among the big attractions is the good geographical connect and a consistent demand for APIs.
Companies like Bal Pharma, R L Fine Chem, Aurobindo Pharma, Sun Pharma, Ranbaxy, Lupin Ltd and JB Chemicals among others have a slice of the market.
While the close proximity to India, high quality standards make Bangladesh dependent on us, a key issue is the pricing pressure from China, said industry sources.
The need for APIs in the international arena is changing from a cost vulnerable model to a quality conscious platform. The biggest advantage for Indian pharma is the technical know-how and the state-of-the-art infrastructure which would create more opportunities, added industry experts.
India is looked up as a major hub for APIs. The country has the largest USFDA approved facilities besides being home to over 1,000 WHO approved production units. In spite of the prevalence of a stringent regulatory environment in Bangladesh, the large and medium pharma companies have managed to make a dent in the country.
India’s biotech major, Biocon has inked partnership deals with Bangladesh companies like Square Pharmaceuticals and Incepta Pharmaceuticals to be a single source supplier for APIs.
Biocon has been a key supplier to these markets with its range of APIs in the cardiovascular, statins, immunosuppressants, diabetes and nephrology said Rakesh Bamzai, president, marketing, , Biocon Ltd.
The scope is tremendous and the potential for Indian companies to exploit the opportunities is significant for bulk drugs. This is backed by Bangladesh’s sound formulation development plans put forth by its local producers, he added.
With the rise in purchasing power of the people in that country, there has been a rising incidence of life style disorders. The government of Bangladesh has also supported a robust healthcare system which calls for in-house development of formulations. All these factors have helped in increasing the demandof a range of APIs for varied therapeutics, said Bamzai.
In order to grow its business in the region and to augment its revenues from the country, Indian pharma companies will have to initiate a dialogue with the Ministry of Health in Bangladesh through the government of India to open up opportunities for Indian formulations. “While India is a major exporter to the US and Europe, only Bangladesh market is shut for formulations pointed out Bamzai.
The main advantage for the success of Indian pharma in the region is the high quality standards and the drug master file submissions. This has created confidence in the Indian companies to supply APIs, said Archana Dubey Mitra, associate vice president, API & Exports, Bal Pharma Ltd.
In the case of Bal Pharma, its key APIs marketed in the region are Adapalene and Gliclazide only. “We are in discussion for products like Levobunolol HCL an Anti Glaucoma, Benzydamine HC, Gliclazide, Tolterodine Tartrate, Bepotastine Besylate, Ebastine , Voglibose, Pregabalin and Topiramate”, she said.
Although Indian pharma is bullish about Bangladesh markets, companies are bogged down by the massive cost cutting in negotiations. There is cut - throat competition and companies from China, Mitra added.
Bal Pharma is also keen to market formulations in Bangladesh but now is only focusing on APIs. In fact the company has two representatives handling the region as the market demands a constant physical presence. However, it is also in the region through agents, she said.
There are also opportunities for Indian API majors in the space of antibiotics as there are constant bouts of infectious diseases. India, known for its range of antibiotics and antipyretics and pain management drugs can find a slot to trade in the region , according to sources.
However the market is only open for APIs. For many companies, Bangladesh is not attractive primarily because they are not able to reach the right product to the right people. The high barriers of trade protectionism makes Indian companies to have a relook at their export options to the region. Many companies have stopped doing business in the region because of poor return on investment, driven by stiff competition, low pricing giving no scope for survival in the region, said industry sources.
The way forward to maximize the presence in the region is to adopt a collaborative approach opined sources.