Though at a nascent stage, Bangladesh holds huge potential for the Indian pharma companies to tap. Since much potential exists for developing trade and economic relations between the two countries, both the nations should move ahead to tap the emerging opportunities, aver experts.
While on the one hand , India being a well established country in pharma segment can assist Bangladesh to grow, on the other Indian companies can gain from exports, they point out.
Having India in its neighbourhood with a strong base in the pharma sector, Bangladesh is a big importer of pharma and infrastructure raw materials from India for its domestic consumption and commercial purposes.
Bangladesh is importing huge quantities of APIs from India for its domestic pharma industry needs. As the country is aiming to develop its own API manufacturing base, it could well utilize the services of India and can enter into joint ventures with Indian companies for technology transfer and sharing other aspects of the industry.
Over the years, India and Bangladesh have taken a number of initiatives to remove “invisible” trade barriers such as elimination of tariffs and non-tariff restrictions at the unilateral, bilateral, and regional levels. India has become Bangladesh’s largest trading partner in South Asia.
Having recognized the huge potential of the budding pharmaceutical sector in Bangladesh, India with its well established and globally renowned pharmaceutical base can play a vital role in terms of technology transfer, providing training, imparting knowledge on various related subjects of pharma and biotechnology and thereby can develop mutual trade relations and become one of Asia’s dominant players.
With a view to improve trade relations among the two nations, two years back, the Pharmaceutical export promotion council of India (Pharmexcil) had lead a delegation of 26 members to Dhaka and even participated at an international pharmaceutical trade expo in Dhaka to showcase India’s capabilities.
“In the recent years, we have improved our API exports to Bangladesh. Though some companies in Bangladesh are strong in manufacturing in certain generics, they are weak in molecule segment. Their APIs industry has not yet grown and totally import oriented. Most of their companies are importing APIs from India and China,” said Dr. P.V. Appaji, Director General, Pharmexcil.
Though the domestic market at present is growing at a rate of about 15-20 per cent per year in Bangladesh, the country is lagging behind due to acute infrastructure deficiency. Bangladesh pharmaceutical industry still lacks independent and efficient production capabilities of processing & packaging machineries, raw materials etc. Taking this as an advantage, the Indian pharma players can build a strong business relationship with Bangladeshi companies to help them build infrastructure and in turn Indian companies can gain from exports.
In this direction, the Indian government and the government of Bangladesh should focus to strengthen their growing bilateral trade relations and allow free flow of goods and services between the two countries which will be economically beneficial for both the countries. “Two years back we participated in Asia Pharma expo at Dhaka. It was a good experience for our pharma players to understand the local Bangladeshi markets,” said Dr. Appaji, when asked about their previous programmes to Bangladesh.
Today, India with its strong pharmaceutical and biotechnology base is rapidly expanding its trade relations across the globe. Apart from focusing its valued markets like USA, EU, LAC and West Asia, India is also taking steps to strengthen its pharmaceutical and biotechnology foothold among its neighbours.
Bangladesh being one of its valued neighbours on the eastern side, India has focused its concentration to improve its trade relations especially in the medicinal drugs and chemicals sector. Indian pharma companies have been consistently improving their exports to Bangladesh. Indian exports of pharma products to Bangladesh doubled from $ 37 million in 2003-04 to $ 63 million in the year 2005-06.
Currently the global generic drug market is $130 billion and the US is the market leader with more than $45 billion whereas India's presence is growing strong with $9 billion. In comparison with these bigwigs, Bangladesh has just $45 million of its export share. In 2000, Bangladesh imported US $84,000,000 worth of medicinal and pharmaceutical products and had negligible exports.
Today Indian pharma companies exports a variety of products to the Bangladesh markets. This include pharmaceutical processing & packaging machinery, food & beverage, pesticides, cosmetic industries, liquid packaging equipment, punches & dies, tool care products, tablet punches & dies, tablet press, sticker labeling machines and labels, powder filling line, oral liquid filling line, spares- injectables, water purification system, water demineralisation plant, R.O. system, ultrapure water system, capsule filling machines, GC, UV-VIS, printing machinery, polishing kit, filter bags, inspection, filter media, aluminium seal, rubber stoppers for pharmaceuticals industry, cooling cabinets, ovens & water bath, stability chambers, walk instability chambers, conveying system, Octagonal blender, vibro sifter, fluid bed dryer, multimill, ointment cream mfg. Plant, D.W. storage, analytical testing instruments, aluminium scales etc.
After gaining independence in 1971, the pharma sector in Bangladesh had been gradually growing. From a mere 15 per cent local market share in the initial days, today, the country’s pharma sector has grown to US $ 900 million, catering to 97 per cent of its local market demand. Apart from meeting from internal demand, there are about more than 10 leading Bangladeshi pharma companies that are exporting generics in the international markets. Some of them are also emerging as competitors to Indian companies in certain areas. Bangladesh is exporting their pharmaceuticals products to Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand, and some countries of Central Asia and Africa. It also has a large market in European countries.
In the recent years Bangladesh has been organizing international pharmaceutical conventions to promote its pharmaceutical capabilities across the globe. As part of this, it had even organized its fifth Asia pharma exhibition at Dhaka.
One more advantage for the Bangladeshi pharma industry is that, since Bangladesh is listed as a LCD (least developed country) country, according to WTO’s (World Trade Organization) Doha declaration, Bangladesh is allowed to produce drugs which are still under Patent protection until year 2016.
In fact with the inclusion of the Doha declaration in TRIPS (Trade-Related Aspects of Intellectual Property Rights) during year 2002 any country belonging to the LDC category has the option of legally reverse-engineer patented products (product patent) and sell it in their domestic market as well as export to other LDCs until year 2016.
Bangladesh had consumed US$ 567.3 million medicines in the year 2009 of which US $ 35.78 million are being imported from India, china and other countries. The country’s major medicinal needs are being supported by its domestic industry which accounts to around US$ 531.52 million. In Bangladesh, there are about 50 pharmaceuticals companies, who are leading the local market. And majority of the country’s medical needs are being supplied by the Indian companies.
According to Bangladesh Pharmaceuticals and Healthcare Report 2011, Bangladesh medicine sales reached Tk. 7,000 crore in 2010. Business Monitor International in its latest report said Bangladesh hold the 14th position in 17 regional markets surveyed in BMIs Pharmaceutical & Healthcare Business Environment Ratings for the Asia region. Bangladesh's pharmaceutical rating is 40.2 out of 100; this figure has changed marginally from the previous quarter but still remains lower than the regional average of 53.1.
Globally, Bangladesh occupies 67th position in BMIs 83market-strong pharmaceutical universe. At present Bangladesh is exporting more than 67 different countries of the world. There are about 450 generics/substances registered in Bangladesh. Out of these 450 generics, 209 are in the controlled category (i.e. in the essential drug list). The remaining 333 generics are in the decontrolled category. The total number of brands/items that are registered in Bangladesh is currently estimated to be 5,300 while the total number of dosage forms and strengths are 8, 300, about 12,500 plus brands.
Novo and Medintis are two important organizations in Bangladesh that are importing maximum amount of pharmaceutical products. Other organizations engaging in import of pharma products include Sanofi, Aventis, Glaxo Smithkline, Sandoz, Novartis, Roche, Unimed, Servier etc.
At present, Bangladesh pharma sector is at a nascent stage and its markets are also very small. Because of this reason Indian has not included Bangladesh in its list of focus pharma markets and therefore the MDA (Marketing Development Assistance) scheme is not applicable for this country.
“Since Bangladesh is not included in the focus market list of India, the MDA scheme is not applicable to this country. Thought the SME members are interested to go to Bangladesh to showcase their products, they are not able to afford it due to non applicability of MDA. Currently we are conducting regular tours, exhibitions and organizing meetings in African, LAC (Latin American Countries) and CIS regions under the MDA scheme of the central government,” replied Appaji, when asked about any future programmes for Bangladesh.
Among the LCD countries, Bangladesh is the largest producer of drug formulations. The country is exporting formulations to over 60 countries including Pakistan, Nepal, and Sri Lanka etc. Bangladesh also enjoys exemption from ‘product patents’ under WTO till 2016.
Since Bangladesh is having good relations with India, the Indian government and the Indian pharma manufacturers can take this opportunity to route their products through Bangladesh to avail the duty exemptions.
The Directorate of Drug Administration takes care of product registrations in Bangladesh. It also supervises and implements all prevailing Drug Regulations in the country and regulates all activities related to import, procurement of raw and packing materials, production and import of finished drugs, export, sale, pricing, etc. of all kinds of medicine including those of Ayurvedic, Unani and Homoeopathic systems.
Bangladesh is also known for the conventional and traditional medicines. Traditionally Ayurveda, Unani and Homeopathic drugs were serving the needs of larger population in the country. At present, there are 204 Ayurvedic, 295 Unani and 77 Homoeopathic drug-manufacturing companies in Bangladesh. In addition to this, there are 231 Allopathic companies manufacturing modern medicines in the country.
Some of the leading pharmaceutical companies in Bangladesh include Beximco Pharmaceuticals Ltd, Square Pharma, Incepta Pharmaceuticals, Delta Pharma Limited, ACI, Orion, Deckon and IBN Sinha etc. Most of these companies are importing pharmaceutical raw materials and finished products from India.