In the SAARC region, Bangladesh stands out as a nation with a vast potential to become a leading pharmaceutical producer. Currently the country is producing mostly the drug formulations and nearly 200 units are engaged in this activity. The production by these units is adequate to meet almost 95 percent of the national requirements. The formulation industry in Bangladesh grows at the rate of 22 percent annually at present. At this rate of growth, the turnover of pharma industry is expected to touch 50,000 million Tk by 2005. Beximco Pharmaceuticals Ltd is the largest pharma company with a market share of 16 per cent. With not many large pharmaceutical units, the international manufacturing standards are largely absent amongst most of the small units. Regulatory procedures are yet to fully evolve. However companies like Beximco Pharmaceuticals, Square Pharmaceuticals, etc are now trying to adopt international manufacturing standards in their facilities. As far as bulk drugs and pharmaceutical machinery manufacturing are concerned, they are almost non-existant in Bangladesh currently. There are just two units producing active pharmaceutical ingredients. With the result, Bangladesh depends heavily on India, China, UK and a few other European countries for its active pharmaceutical ingredients and pharma machinery and equipments. Pharmalab, an Ahmedabad-based process machinery company has been already operating in Bangladesh for some years.

The current state of Bangladesh pharmaceutical industry gives tremendous scope for the Indian drug industry and its allied sectors to step up export and commence manufacturing activity in that country. Currently almost 50 percent of the bulk drug requirements of Bangladesh is being supplied by the Indian drug industry. In India, several medium and small-scale bulk drug units have closed down in Andhra Pradesh, Gujarat and other drug producing centres in recent years on account of excess capacity creation and unhealthy competition. Only large bulk drug units with huge capacities have managed to survive that crisis. With just two producers of bulk drugs and at the same time a steady surge in demand for various bulk drugs from the formulation industry, a huge opportunity is waiting for Indian pharma industry in Bangladesh. Definitely, there will be a threat from Chinese producers as the manufacturing costs of bulk drugs are much cheaper in China. The strength of Indian bulk drug producers has been a better quality of the product in the international market. And if a higher quality of bulk drug production is maintained, Indian pharma companies can very well withstand the Chinese competition even in Bangladesh. And the Bangladesh drug authorities are extremely conscious about the quality of drugs sold in the market. That should be in favour of Indian drug companies.