India's closest neighbour Bangladesh is emerging as the largest producer of pharmaceutical in the developing world, thanks to the present WTO regime that gives the country exemption till 2016 to comply with intellectual property rights.Making the best use of the time advantage the Bangla pharma is racing past to gain a firm foothold as a producer and exporter of pharmaceutical products in the global market place. Its efforts are gaining an added momentum as India and China-the lead producers in the Asian region-kept out of the race after embracing Trade Related Intellectual Property Rights (TRIPs) following their obligations with WTO.
Growing at the rate of 10 per cent annually, Bangladesh's pharmaceutical industry is the largest among the 50 least developed countries (LDCs). Export of Bangladeshi pharmaceutical products to global market are increasing at a robust 40 percent annually This double digit growth is the fastest in the third world pharma, according to a recent review published by the Asian Development Bank (ADB). The industry's market share stood at $500 million last year, meeting 96 percent of domestic demand, besides exporting to over 60 counties. Approximately one hundred and fifty small and medium pharmaceutical companies in Bangladesh now produce more than 5,000 registered brands with over 8,000 different dosages in different forms and strengths.
The pharmaceutical industry here is largely dominated by domestic producers, with few Bangladeshi multinational firms also engaging in production and marketing. Square Pharmaceuticals Ltd, Beximco Pharmaceuticals Ltd, Aristopharma Ltd, Amico Laboratories, The ACME Laboratories Ltd, Eskayef Bangladesh Limited, Incepta Pharmaceuticals Limited are some of the leading players. "WTO rules have opened the prospects of good business in foreign market by big local companies having modern quality research and development units. A pharmaceutical manufacturer of a LDC, can now legally reverse- engineer patented products and sell it in the domestic market as well as in all other LDCs, non-WTO member countries and countries where product patent is not in force,'' comments Nazmul Hassan, CEO of Beximco, a leading drug firm in Bangladesh.
Most manufacturers here, however, produce finished patented drugs, with only a few companies involved in producing active raw material known as pharmaceutical ingredients. The pharma industry in Bangladesh is paying the second largest revenue to the government's exchequer.
Though Bangladesh's medicines market is comparatively low it has a potential $3 billion export market. There are handful of Bangladeshi pharmaceutical companies export its products to Asia, Europe, Africa and Latin America. The export items cover wide range of products of all major therapeutic classes and dosage forms. It includes high-technology products like inhalers, suppositories, nasal sprays, injectibles and infusions.
Despite the dramatic increase in the drug production capacities, sourcing of raw materials continues dog the manufacturing sector. The drug makers are still dependent on imported raw materials that ahs gone upto 80 percent, of late. However, there are some initiatives now to set up new industries to produce raw materials, which will be reflected in further growth in the country's pharmaceutical sector soon. Another advantage that works in favour of Bangladesh pharma industry is a well educated, cheap work forces that can help companies to manufacture low-cost medicines at a higher profit.
The export of the country's pharmaceutical drugs was first limited to neighbouring countries like Myanmar, Sri Lanka and Nepal. But it started to spread to regulated markets in Asia, Africa, Europe and the Middle East with the boom as the country started to produce quality drugs. The quality and effectiveness of Bangladeshi drugs are widely acclaimed in the global market. Renowned hospitals and institutions in various countries, including Kenya, Pakistan, Singapore and Sri Lanka are using Bangladeshi drugs for treatment, the ADB reports said.
"Most of the Bangladeshi Pharmaceutical companies try to sell its products in LDC countries. To sell its product, pharmaceuticals company needs to register its name and its products in the respectable countries and it is very expansive. Moreover, it has to spend money on advertisement as well, ''observes MM Chowdhury of Amreteck Pharma Services, a worldwide consulting company with a joint venture in Banglaesh. According to Chowdhury, joint-venture between foreign and local Bangladeshi Pharmaceutical companies will help them to save money and to grow bigger in respect of size, exports, resources and investment. It would be great a opportunity for foreign pharmaceutical companies to be involved with local Bangladeshi pharmaceutical companies to reap the benefit of low cost business environment.