In Bangladesh, pharmaceutical industry has been identified as a priority sector. Presently, the industry is the second largest taxpayer to the country's exchequer. Bangladesh's pharmaceutical industry is meeting 97% of the local requirements. The rest 3% consists of imported hi-tech products like insulin, other hormonal products, anti-cancer products, blood components/ derivatives infusions, etc. Even this 3% import is expected to come down to less than 1% by the year 2007. This will be possible due to proactive approach of some leading companies to make Bangladesh self-sufficient in pharmaceutical finished products through investing in hi-tech facilities.
The total pharmaceutical market size of Bangladesh is approximately 4000 crore taka. The pharmaceutical industry registered nearly 15-20% growth in recent times. The government along with the related regulatory authorities is encouraging the industry to attain the worldclass quality and infrastructure to face the challenges of globalization in line with WTO / TRIPS agreement. Different corporate bodies and business groups turned their focus on this prospective segment too.
Recently, a few new industries have been established with sophisticated equipment and highly skilled professional which are expected to infuse fresh vigour to this sector. The old companies have also invested to upgrade their existing facilities or build up new ones following the US FDA and UK MHRA specifications and guideline with the aim to penetrate into the competitive world market.
The pharmaceutical companies of Bangladesh are already exporting finished products to 65 countries of the world including Vietnam, Myanmar, Yemen, Ukraine, Singapore, Pakistan, Nepal, etc. after fulfilling the demand of the local market. Recently, Bangladesh has started exporting to South African countries too. Leading pharmaceutical companies have taken diversified business strategies with the aim to explore further export opportunities.
Bangladesh is the only country amongst the 49 LDCs, which has a strong manufacturing base. Frequent visits of high-level delegations from different foreign countries to several of pharmaceutical plants of the country indicates the changing image of the industry outside Bangladesh. Obviously, this is the outcome of the collective efforts of the entrepreneurs, Bangladesh Association of Pharmaceutical Industries (BAPI), concerned regulatory authorities, policy makers of the government and other related industries providing necessary support.
This booming pharma industry has directly and indirectly played a key role in development of the industries associated with primary and secondary packaging supply. But entrepreneurs have not yet taken sufficient steps to develop own resources for the API as in markets like India, China, Korea and many other countries.
The scenario is expected to change with the recent progress in the implementation of establishing the proposed API Park in Savar. The feasibility study of the project is going on in full swing aided by ADB and monitored by BAPI.
It is not far away that Bangladesh acquires necessary strength to enter into the market of the developed countries complying with their rules and regulations. The recent upgradation of the WHO cGMP guidelines are also forcing the manufacturers to upgrade to a level equivalent to the guidelines followed by the developed countries. The trend of uplifting the quality of the formulation products in the country has also been a guiding force for the local market. The competition in turn has increased the growth of the industry. Unfortunately, this competition has also led to some unethical business practices, in some cases involving the physicians' community as well. This has, on the other hand also created opportunities for the people to have easy access to world-class medicines at a lower price.
As in other cases, there also exists some drawbacks in the industry. The drug dispensing system to the end consumers prevailing in the country is not up to the international practice. Now, the dispensing retailers do not understand the implications of OTC and "prescription only" medicines which pose a grave threat to public health due to non-judicious use by the consumers. Syndicated business of spurious products, sub-standard and banned medicines entering the local market through many illegal ways are also threatening the industry as well as the public health. No effective measures by the concerned authorities have yet been taken to regulate this system which poses a direct threat to not only to the lives of the people but for the interest of the industry and the country as well.
As a whole, the pharmaceutical sector has created a new dimension in creating export opportunities after the garments sector. Moreover, some related industries like herbal products (both traditional & western), agro-vet products are also growing which raise the hope of the further export opportunities. The policy makers of the government are expected to support such initiatives to utilize the opportunities created by the WTO/TRIPS agreement up to 2016.
(The author is manager, Product Management Department, The IBN Sina Pharmaceutical Industry Ltd.)
--Courtesy: The Pharma World