Bangladesh is fast emerging as a key destination in the South Asian market strategy of the global pharma majors. This is especially true as far as India is concerned.
The close proximity to India, technical know-how, state-of-the-art infrastructure and high quality standards make Bangladesh rely on Indian companies. India has the largest USFDA approved facilities besides being home to over 1,000 WHO approved production units.
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
The country is also showing a growing demand for active pharmaceutical ingredients (APIs) market as the pharma companies in Bangladesh have an impressive formulation business.
Owing to this companies like Biocon, Bal Pharma, R L Fine Chem, Aurobindo Pharma, Sun Pharma, Ranbaxy, Lupin Ltd and JB Chemicals among others could manage to grab a share of the market.
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 demand of a range of APIs for varied therapeutics.
With a renewed focus on reverse engineering skills, regulatory and legal affairs, and developing skills across the pharma value chain, Bangladesh has the potential to become a global generic drug hub in future, aver industry experts.
Owing a growing demand for Bangladeshi medicines in Southeast Asia, Asia Pacific and Africa, the pharma exports from the country rose to around 24 per cent year-on-year to $59.82 million in fiscal 2012-13 and has continued to indicate a similar growth trend.
However, experts contend that Bangladeshi pharma industry has been consistent in registering a 15 per cent growth per annum. The industry which is at $1.82 billion today is expected to grow to $5.59 billion by the year 2022.
Comprehending the promising growth prospects ensuing from this pharma industry , the government of Bangladesh has declared it as a thrust area to provide the requirement focus primarily due to its huge export potential.
The sector's growth is phenomenal given the fact that 20 years ago, 75 per cent of Bangladesh's pharmaceutical products were imported. Now, 97 per cent of Bangladesh's need is produced locally.
According to International Marketing Services (IMS), Bangladesh's domestic pharmaceuticals market grew nearly 13 per cent to $250 million in 2013.The country's pharma market has created around one lakh jobs. Local companies are working to establish their brands in different international markets such as South Asia, Africa, Latin America and the EU. Many companies including Square, Incepta, Beximco, Acme and Eskayef have successfully created demand, which has boosted exports.
At present Bangladesh exports pharma products to 87 countries, including the US and a few European nations, after meeting 97 per cent of the local demand. State-owned Essential Drugs Company Ltd (EDCL) has recently entered the Sri Lankan market with nine products under a government-to-government (G2G) agreement. Beximco Pharma has also started exporting medicines to Europe. Other two local companies namely Eskayef and Square have already carved a niche in the EU markets.
With growing foot print in the non- regulated markets, particularly in Asia and Africa, the Bangladeshi pharma companies are gearing up to strengthen their global presence. By the end of the year 2014, the industry is targeting to reach at least 30 new destinations and by 2016, it is aiming to reach 50 least developed nations (LDCs) across Asia and Africa. Since Bangladesh is taking the advantage of TRIPS agreement and being a LDC is exempted from patent protection until 2016.
There are opportunities for contract manufacture, because of the production plant modernization and access to cheap labour. This makes the multinational companies keen to offload production of drugs and enter into strategic alliance for collaborative manufacture and marketing initiatives.
Among the 50 LDCs, Bangladesh is the only country that has quality pharmaceutical manufacturing base with marketing capability in the overseas. The country’s pharma base is so well established that it has potential to export its medicines and pharmaceutical items to, at least, 80 market-destinations across the world.
Recently Sri Lanka has turned its attention to import medicines from Bangladesh. The move is aimed at reducing Sri Lanka's dependence on India, which currently supplies 70 to 80 per cent of its drugs. Focusing on the Asian markets, Bangladesh has exported medicines worth TK 400 crore to Sri Lankan State Pharmaceuticals Corporation during the fiscal 2013-2014.
Bangladesh is also eyeing to export more medicines to Brunei in a bid to expand bilateral trade, the republic’s High Commissioner to Brunei said. Ambassador Mohammed Abdul Hye is confident that Bangladeshi pharmaceutical products can capture a share in the Bruneian market and this will increase the current trade between two countries to US$1 million (approximately $1.24 million).
According to the Commerce Ministry's Export Promotion Bureau (EPB), Bangladesh now exports to about 85 countries including Austria, Denmark, the UK, Germany, France, Singapore, Indonesia, Vietnam, the Philippines, Brazil, Pakistan, Burma and Yemen.
The Directorate General of Drug Administration (DGDA), indicates that 194 of 275 government-registered pharmaceutical companies regularly produce items like cough syrup and flu tablets. Square, Incepta, Beximco, Acme, and Eskayef account for 45 per cent of Bangladesh's total production, manufacturing products for export in state-of the-art factories.
Companies like the UK's GlaxoSmithKline, Switzerland's Novartis and France's Sanofi have set up plants producing life-saving vaccines, anti-cancer drugs and other high-end products in Bangladesh.
Industry growth has created employment opportunities for pharmacists, chemists, microbiologists and doctors who are paid well enough to keep professionals from going overseas.
Bangladesh is also trying to establish an industrial park for pharmaceutical production. One such park in Munshiganj near Dhaka is nearing completion and the country is hoping to see a big jump in its income from pharmaceutical exports, according to an expert.
Since the actual potential is even higher, the country needs to improve its infrastructure and capabilities and the manufacturers should have adequate support from the government to realise that potential,says an official from a leading pharma company.
Bangladeshi medicine makers meet 98 per cent of domestic demand and export to 88 counties. The country exported 30 pharmaceutical items in fiscal 2013-14.Export figures would have been higher if the country had not gone through a political crisis, says an analyst.
The sector incurred losses in the first six months of last fiscal year due to political unrest, which almost broke the supply chain down. Most medicine makers are receiving new export orders as political setbacks subsided, he added.
Although Southeast Asia and Africa are traditionally Bangladesh’s major markets for generic drug exports, leading companies have now focused on advanced markets, he said
At least five companies successfully entered the European market and received good responses from the buyers and have also registered products in countries like Netherlands, Latvia, Azerbaijan, Costa Rica, Estonia and Lithuania in the current fiscal, he added
For sorting out trade related issues, the industry experts in Bangladesh are looking to build a common platform with all the LDC countries. By doing so all the issues relating to free sales certificates/certificate of pharmaceutical products, valid good manufacturing practice (GMP) certificate and product approved annexure can easily be dealt with, among the LDC members.
However, the country will have to go a long way to establish itself as a generic drug hub, as it needs to strengthen capabilities in several key areas. The country needs to upgrade research and development skills in producing technology driven, specialised niche products such as sterile ophthalmic products, inhalers, lyophilised injectables, transdermal patches and biologics. Bangladesh also needs to strengthen its capabilities in regulatory and legal affairs for the sake of the industry, opine industry experts.