Pharmaceutical sector in Bangladesh is one of the most developed technology oriented sectors which is contributing to the country's economy. After the establishment of Drug Control Ordinance - 1982, the development of this sector was accelerated. The key factors which lead to its development were professional knowledge, thoughts and innovative ideas of the pharmacists working in his sector. Due to recent development of this sector Bangladesh is exporting medicines to global markets. In 2005, the domestic firms claimed that approximately 97 per cent of pharmaceutical consumption was manufactured domestically.
Leading pharmaceutical companies are strengthening their business with the aim to expand export market. Recently, a few new industries have been established with high technology equipment and professionals which will enhance the strength of this sector.
In spite of being the most developed technology sector, even the most basic healthcare provision remains sub-standard, despite the ongoing efforts of the government, aided by considerable international assistance. Secondary or tertiary care is within the reach of only a few people. There is shortage of trained staff in government hospitals. Private hospital sector is showing significant growth and is largely based in Dhaka.
The pharmaceutical market in Bangladesh is valued at US$589 million growing at 12% annually. The per capita spending on pharmaceuticals is amongst the lowest in the world. There are nearly 200 manufacturers who account for 93% of the formulations market in the country.
Nearly 6000 brands of medicines are manufactured by the local firms in Bangladesh.
1,600 wholesale drug licence holders and about 39,000 retail drug licence holders are present in Bangladesh. Amongst the therapeutic classes anti-infective are the largest of locally produced medicinal products, followed by antacids and anti-ulcerants. Other significant therapeutic classes include non-steroidal anti-inflammatory drug (NSAID), vitamins, central nervous system (CNS) and respiratory products.
GSK, Aventis, Novartis & Roche are among the top 20 multinational companies operating in Bangladesh. Following the Drug (Control) Ordinance of 1982, some of the local pharmaceutical companies improved range and quality of their products considerably. Squires, Beximco, Acme, Incepta, Opsonin, ACI, General Pharma, Ibn Sina are quite strong and enjoy good market share. Squire currently is the no.1 company in the industry and enjoyed over 12% market share in 2005.
Export of pharmaceutical products is still in an infant stage, although a number of private pharmaceutical companies have already entered the export market with their basic materials and finished products. They export their products to Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand, and some countries of Central Asia and Africa. Bangladesh's pharmaceuticals export grew by around 11 per cent during July-February period of the current financial year (July 2005-June 2006) and was doubled in just two years. Pharmaceuticals export rose to US$ 15.72 million in the first eight months of the 2005-06 financial year while it was US$ 14.21 during the same period of last fiscal year, according to Export Promotion Bureau (EPB) statistics.
The Public sector constitutes three drug manufacturing units. Two of them are the Dhaka and Bogra units of Essential Drug Company Ltd. (EDCL), functioning under the Ministry of Health and Family Welfare. There are separate vaccines and large volume IV fluids production units under the Institute of Public Health (IPH). The productions of both EDCL and IPH are mostly used in government hospitals and institutions.
Bangladesh, which only became independent in 1971, has had a domestic patent law dating back to 1911 (the colonial act), which includes product patents. But until recently, few patents were filed in Bangladesh. But now that India's patent law has been changed, companies are seeing Bangladesh tremendous opportunities, and they are in the process of filing patents here in significant numbers.
The domestic industry in Bangladesh looks upon its Least Developed Countries (LDC) status as a strategic advantage. Bangladesh does not need to amend its domestic patent law to eliminate patents on pharmaceutical products, until at least 2016, and it can freely export medicines without worrying about the World Trade Organization's, 30th August, 2003 decision. Bangladesh apparently cannot lose its LDC status until 2012 at the earliest, because its per capita income is considerably below the UN threshold for LDCs.
The market is dominated by cheap, locally produced generic drugs used for the treatment or prevention of basic illnesses and conditions.
There are close to 15 drug manufacturing units, which also manufacture certain basic materials. These include paracetamol, ampicillin trihydrate, amoxycillin trihydrate, diclofenac sodium, aluminium hydroxide dried gel, dextrose monohydrate, hard gelatin capsule shell, chloroquine phosphate, propranolol hydrochloride, benzoyl metronidazole, sodium stibogluconate (Stibatin) and pyrantel pamoate. However, most of these are confined to the last stage of synthesis. Majority of the APIs and machinery are sourced from India, China and other European countries.
With the improvement in the economic condition and a strong determination to improve the quality of healthcare a steady market growth is expected. It is foreseen that legislation and initiatives regarding health and welfare issues can be implemented with greater ease and efficacy with the ruling party in power holding a sizeable majority. With multinational pharmaceutical manufacturers increasing investments in Bangladesh the sector is anticipated to have accelerated growth. The revised National Drug Policy which was introduced in 2005 is likely to attract foreign multinational investment and revitalize the healthcare sector in the long term.
(The author is program manager, Healthcare Practice, Frost & Sullivan. He can be contacted through: sdedhia@frost.com)