Future Prospects of

Pharmaceutical Industry of
Bangladesh

Nazmul Hassan MP
Advisor
Bangladesh Association of Pharmaceutical Industries
 1971: A New Country was born

Bangladesh
War-torn economy
Disrupted infrastructure
Deficit in foreign currency

All these, aggravated the overall healthcare

situation of the country
Import Based Health Care Sector

In the post liberation period, health-care facilities

were mostly dependent on Import :

Bangladesh Pharmaceutical sector

remained as an `Import based’ sector during early 70’s
 1982: New Drug Policy

1982 Drug Policy largely encouraged local production

in pharmaceutical sector

As a result, a large number of local companies

invested in pharmaceutical manufacturing facilities.
 Significant Milestone:
1996

“Restriction on Import of drugs

that are locally manufactured”

By Honorable Prime Minister,

Her Excellency
Sheikh Hasina

Led to the “National Aspiration” towards

self-sufficiency in pharmaceutical sector
 Bangladesh Pharmaceutical Industry

Today
One of the fastest growing business sectors

Total Market Size in 2008: US $ 715 M

Second highest contributor to national ex-chequer

Largest white-collar labor intensive employment sector

 Bangladesh Pharmaceutical Industry

Today
Mainly dominated by local manufacturers

13%
MNCs

Local
87%

Top 10 pharmaceutical companies are local companies

 Towards Self Sufficiency

97% Local Manufacturing

Only 3% import
Vaccine
Anticancer
Insulin IMPORT

Singapore 75%

Myanmar 90%

Sri Lanka 85%

 Self Sufficiency
Without Compromising Quality

Bangladesh is now capable of producing high quality Products

The industry employs

State-of-the-art manufacturing technology
Sophisticated QC equipment and apparatus
Highly skilled human resources

Finest quality medicine

 Self Sufficiency
without affecting affordability

Price per tab or cap

1982 2009
Amoxicillin Capsule Tk. 7.18 Tk. 3.50

Doxycycline Capsule Tk. 3.95 Tk. 2.0

Diclofenac Tablet Tk. 9.00 Tk. 0.50

 Import > Self Sufficiency > Export

Now, Bangladesh has fulfilled another “National Aspiration” of

“Turning an Import based Pharmaceutical Industry

into an exporter of quality medicines”
 Pharmaceutical Export from Bangladesh

Today

Bangladesh Pharmaceutical Industry is successfully

exporting its quality products to about 72 countries in

Asia
Africa
Latin America
Europe
 API: Export from Bangladesh

Countries where we have exported APIs

Germany Taiwan
Iran
Vietnam
Hong Kong
South Korea Thailand

Malaysia Nepal
75% Pharmaceutical APIs for
U.S. Drug Industry are imported
 API: Easy to Export

No Stringent Registration Requirement

Low operational and promotional cost

Cost competitiveness is the decisive factor

….. Easy to export

 Formulation: Export from Bangladesh

A number of pharma companies have export activities

in about 72 countries, including

Asia incl. Middle East & Pacific Island Europe

Myanmar Pakistan Hong Kong UK Spain Hungary
Singapore Vietnam Philippine Ukraine Russia Denmark
Sri Lanka Cambodia Nepal Belgium Slovenia Austria
Indonesia Malaysia UAE
Jordan Yemen Papua New Guinea
Fiji

Africa Latin & Central America

South Africa Kenya Ghana Brazil Venezuela Belize
Somalia Togo Gambia Nicaragua Honduras Guatemala
Ethiopia Sudan Mexico Colombia Venezuela
Chile
 What products are we exporting ?

We are exporting wide range of pharmaceutical products

covering all major therapeutic classes and dosage forms.

What products are we exporting ?

Besides conventional products,

we also export High-Tech
Specialized Products like

Inhalers, Suppositories, Nasal

Sprays, Injectables Infusions
etc.
 Who are our overseas customers ?

Apart from overseas retail customers, we also supply products to world

renowned institutions like

KK Women and Children Hospitals, Singapore

Raffles Hospital, Singapore
Healthway Group, Singapore
UNICEF Copenhagen
ADF France
Govt. of Chile
Govt. of Nicaragua and Guatemala
 Product Quality

The Quality and Efficacy of the products being exported from Bangladesh

have been highly appreciated in all the countries we are exporting.

Huge investment taking place

Over the lest few years significant amount of investment has

taken place (c.US 250 million dollar in last 3 years) for

Facility Expansion & New Entries

and/or upgrades

A number of pharmaceutical companies have already obtained

GMP certifications for UKMHRA, EU, TGA Australia, GCC etc.
World Pharma Market

• World Pharma Market: USD 800 Billion

• World Generic Market: USD 80 Billion

• India ranks 4th in the World in terms of Production Volume

 Opportunities

Generics Export
• We are essentially generic manufacturers

• Generics are well accepted world-wide

• Generics sell on price

Acquisitions
Bangladesh Pharmaceutical Industry
- Competitive Advantages

Bangladesh has distinct cost advantages

Labor

Power

White Collar Labor

 Cost in India as compared to Bangladesh

• Labor (Workers) Cost: 5.8 times more expensive in India

• White Collar Labor Costs: At least 3- 4 times more expensive in India

• Energy /Power Costs: At least 2.25 times more expensive

India Bangladesh
Government Supply Tk. 6.50 per kWh Tk. 3.03 per kWh
Private Diesel Generators Gas Generators
(Own Captive Power Generation)
Tk. 10.40 per unit Tk. 2.25 per unit
 Comparative price : India Vs. Bangladesh
Price

Indian Brand Bangladesh

Paracetamol tablet Rs. 0.97 eq. Tk. 1.61 Tk. 0.65

Source: CIMS India Jan-Apr 2006

PRICE
 Comparative price : India Vs. Bangladesh
Price

Indian Brand Bangladesh

Paracetamol tablet Rs. 0.97 eq. Tk. 1.61 Tk. 0.65
Amoxycillin 250 capsule Rs. 5.06 eq. Tk. 8.40 Tk. 3.50

Source: CIMS India Jan-Apr 2006

PRICE
 Bangladesh: Cheapest source of
medicine

Bangladesh is one of the Cheapest

sources of Quality medicine in the world.

So, generic pharmaceutical market of

the whole world is open for Bangladesh
 Bangladesh Pharmaceutical Industry
- Competitive Advantages
Contract Manufacturing Opportunities

• Cost cutting measures by re-imbursement authorities in several

“In 2004, the market for
developed countries observed contract manufacturing of
prescription drugs alone
• To capitalize on cost advantages, many major MNCs from was about US$ 26 billion,
and expected to grow to
developed countries are relocating manufacturing (under US$ 44 billion by 2009”.
Contract Manufacturing arrangement) to potential LDCs and
(Source: Datamonitor,
developing countries 2005)

Opportunity to expand business in

developed markets
 Bangladesh Pharmaceutical Industry
- Competitive Advantages

Taking advantages given by TRIPS Agreement

• Signed in 1995 & have been put in place since January 1, 2005 to protect in
WTO states not only formulation of products but also the original molecules.

• Bangladesh and other LDCs are exempted from patent protection until 2016

• Bangladesh, among all 50 LDCs posses the strongest (and probably the only one)
pharmaceutical manufacturing base.
 List of 50 LDCs

Asia Africa

1. Angola 13. Ethiopia 26. Sao Tome

1. Afghanistan
2. Benin 14. Gambia and Principe
2. Bangladesh
3. Burkina Faso 15. Guinea 27. Senegal
3. Bhutan
4. Burundi 16. Guinea Bissau 28. Sierra Leone
4. Cambodia
5. Cape Verde 17. Lesotho 29. Somalia
5. Lao People's DR
6. Central African Rep. 18. Liberia 30. Sudan
6. East Timor
7. Chad 19. Madagascar 31. Togo
7. Maldives
8. Comoros 20. Malawi 32. Uganda
8. Myanmar
9. DR of Congo 21. Mali 33. United Rep.
9. Nepal
10. Djibouti 22. Mauritania of Tanzania
10. Yemen
11. Equatorial Guinea 23. Mozambique 34. Zambia
12. Eritrea 24. Niger
25. Rwanda

Oceania North America

1. Kiribati
2. Samoa 1. Haiti
3. Solomon Islands
4. Tuvalu
5. Vanuatu
 Bangladesh Pharmaceutical Industry
- Competitive Advantages

Compulsory Licensing:
Pharmaceutical companies in Bangladesh can play leading roles (capitalizing
on a strong manufacturing base). In cases of national emergencies,
companies from other countries may take long time to supply products under
‘Compulsory Licensing’, owing the lead time required for new product
commercialization.

Post TRIPS Agreement Opportunities:

• Export to other LDCs (incl. patented products)

• Export to Developed Markets: in cases of

“Compulsory Licensing” situation
 Bangladesh Pharmaceutical Industry
- Competitive Advantages

Summary

Huge investment in
Contract Manufacturing facility construction
(US $250 m in last 3 years)

BANGLADESH
BANGLADESH

Taking advantages of International GMP

TRIPS Agreement: Certification Occurring
Patented products for LDC

Cost advantages:
World Generic Market
 Supports needed to bolster export

• Removal of Export Barriers

• Strengthening of Drug Administration

• Development of Independent Drug Testing Laboratory (DTL)

• Development of Clinical Testing/Bioequivalence Centre(s)

• API Industrial Park

• cGMP Training

• Dedicated pharma zone (temperature control area) at Sea/Air ports

(eg. New Delhi Airport in India)

• Suggested changes in Patent Laws to make best use of TRIPS agreement

Bangladesh – Current Major Export Sectors

• Ready Made Garments (RMG): Major Regional Player

• Annual Export: More than US 10 Billion Dollar

• Other Major Exports:

• Frozen Food
• Jute
• Leather
• Home Textile
• Tea
Contact:
Nazmul Hassan MP
Managing Director
Beximco Pharmaceuticals Ltd
Email: naz@bpl.net