Prospects of Pharmaceutical Industry in Bangladesh

The pharmaceutical industry in Bangladeshi has gone through a transformation during the last 30 years. Professional knowledge, expertise and innovative ideas of the pharmacists working in this sector have been the key factors for such transformation. Beginning in the 1950s, a few multinationals and local entrepreneurs set up manufacturing facilities in the then East Pakistan.
Now over 245 companies produce medicines in Bangladesh out of which 164 are truly operational. The pharmaceutical industry started growing in the country with the adoption of the 1982 drug policy. In the following years, the industry received generous policy support and financial assistance in the form of subsidy to ensure its steady growth. Taking advantage of the favorable government patronage and later the WTO's waiver of patent rights (as agreed under the TRIPs agreement) on generic drugs, as an LDC, the country's pharmaceutical sector achieved phenomenal growth in the last two decades. The industry transformed itself from an import based to an export based one. In 2010, the country exported medicine worth US $ 55 million to approximately 83 countries of the world. In the process, over the years, the prices of medicines in the country also reduced substantially.
The domestic market of pharmaceutical products in Bangladesh has shown a tremendous growth over the last couple of years. There has been a marked value-wise growth of the market -- at the rate of 23.59% in 2011 over that of 2010, according to the data released by IMS Health Bangladesh. According to the IMS, the size of Bangladesh's domestic drug market was $686 million in 2008, $797 million in 2009, $977 million in 2010, and it reached US $1136 million in 2011. There is a big market lying beyond the existing market in the rural areas as only about 20% people in rural area are getting nursing and medical care leaving the rest of the rural market exploitable. When the entire population will be brought under healthcare the market will be automatically enlarged by several times.
The contributing factors in the growth of this market include the development of healthcare infrastructure, increase of health awareness, increased rural penetration of the manufacturers, fast increasing purchasing capacity of the people as well as different government policies to ensure health services and facilities available even in the rural areas. The top ranking companies have already developed world class pharmaceutical plants with state-of-the-art technologies. There are world class machineries, tools, production facilities, HVAC system, effluent treatment, water generation plant, well equipped quality control system and well educated, skilled professionals working in these companies. These factors have made these companies ready to meet the expanded market demands and to increase export in terms of value and quantity as well.
Besides regular forms like tablets, capsules & syrups, Bangladesh is producing specialized products like HFA inhalers, suppositories, nasal sprays, injectables, IV infusions, etc., and has been well accepted by the medical practitioners, chemists, patients and the regulatory bodies of all the importing countries. Bangladesh is also producing high-tech medicines like anticancer drugs, hormonal products, enzymes and coenzymes at a limited scale, meeting only 4% of the total requirements. As such, there lies a huge prospect of these pharmaceuticals categories.
Although the share of export is not significant in comparison to the RMG sector, the government has been attaching high importance for its rapid growth of pharmaceutical industry, not only for its potential, but also because of the qualitative advantages the industry has over other sectors. The value addition is much higher and workers are also better paid in this industry. As such, its contribution to social development is substantial.
However, one of the major challenges for the industry is the 2016 deadline, when the WTO waiver of patent rights will end. The sector will then face fierce competition in the international market. The tariff Commission of Bangladesh has recently recommended increased policy support from the government to face the challenge. These include further duty cuts, expeditious supply of raw material, better laboratory testing facilities, removal of regulatory barriers, etc. In July 2010, Prime Minister Sheikh Hasina urged the WIPO to continue the WTO waiver for another 15 years for Bangladeshi pharmaceuticals from IPR restrictions.