http://www.theindependentbd.com/business/others/20318-pharma-sector-forcing-off-the-pace.html
Pharma sector forcing off the pace
Beenish Qaiser
Bangladesh, a country that was previously known for natural resource based sectors like textiles and jute in the business world, has now emerged as one of the fastest growing pharmaceutical exporting nations. After tobacco, pharmaceutical is the second largest revenue generating industry in Bangladesh, and the country looks well set to merge as a global hub for quality medicines The $700 million industry with more than 230 manufacturers is continuously expanding, rising to new heights with new and improved products. Out of the 230 companies, 200 run their own manufacturing facilities, out of which five are multinationals.
Now approximately 97 per cent of the domestic pharmaceutical demand is met by the local companies. Pharmaceutical products from Bangladesh are a name in the international market, being shipped to over 72 countries around the world such as USA, Latin America, UK as well as its neighboring Asian markets of Nepal, Myanmar, Sri Lanka, Pakistan, India, Thailand and China. Pharma companies are now trying to squeeze their way into the European and African markets. The secret of prosperity for pharmaceutical companies in Bangladesh lies in unparalleled potential for future growth triggered by an acquired edge over their competitors in a number of factors.
First, the industry’s ability to comply with quality control guidelines has enabled them to score a secure platform for themselves.
The industry confirmed over 50 new factories in the last three years and almost all of them are equipped with World Health Organization’s (WHO) Good Manufacturing Practice (GMP) standards.
The sector is also operating in API (active pharmaceutical ingredients) with which twenty-one different companies are now locally manufacturing about 41 API’s.
However, more API industries need to be set up to meet local demand.
At present, Bangladesh imports 80 percent of its pharmaceutical raw materials. At the same time, skilled professionals both native and foreign are joining the pharma sector every year.
Bangladesh has been granted permission by the World Trade Organization (WTO) to reproduce the patented products up to year 2015 as per trade related intellectual property rights (TRIPS).
Thus, pharmaceutical industries are now legally allowed to reverse engineer, manufacture and sell generic versions of on-patent pharmaceutical products for domestic consumption as well as for export to other LDCs. This has made Bangladesh a valuable chemical entity. With about 40 years of experience in pharmaceutical formulation and marketing Bangladesh is now fully trained to help both LDCs and developing countries if required.
Apart from the regular investment in pharmaceutical industries and API, opportunities of bioequivalence study, validation report, clinical trials and manufacturing plant audit mechanisms have been created within Bangladesh and are becoming a source of attraction for more and more foreign investments. Some of the companies including Square Pharma, Renata and Eskayef have already won accreditation from the U.K. Medicines and Healthcare Products Regulatory Agency (MHRA).
Incepta and Beximco Pharma have been accredited by EMEA ( Austria ) and the Therapeutic Goods Administration (TGA-Australia), respectively.
These accreditations will allow them to enter the lucrative market with competitive prices and unsurpassed standards as recognized global antagonists.
This in turn has cultivated a wide range of opportunities for the industry whereby these Bangladeshi companies can now export pharmaceutical products to any part of the world.
The leading pharmaceutical companies in the country such as Advanced Chemical Industries (ACI) Limited, Square Pharma, GlaxoSmithKline Bangladesh Ltd, Beximco Pharmaceuticals Ltd, etc, now possess adequate amenities to produce tablets, capsules, injectibles, liquids, suspensions, sustained release dosage forms, dry powders metered dose inhalers, sterile ophthalmic formulations, HFA, inhalers, suppositories, hormones, steroids, oncology, immunosuppressant products, nasal sprays, creams and ointments.
The major drugs commonly produced in bangladesh include paracetamol, diclofenac, ampicillin and amoxycillin among numerous others.
In recent years, the country has achieved autonomy in large volume parenterals, some quantities of which are also exported to other countries.
Imports constitute about five per cent, including finished formulations like vaccines, latest anti-diabetics and anti-cancer drugs.
Under the Drug Control Ordinance of 1982, the government fixes the maximum retail prices (MRP) of 117 essential drug chemical substances while the non-essential drugs are priced through an indicative price system.
This rule however, is only applicable to the locally manufactured products. For imported finished products, whether they fall in the category of vital or non-vital drugs, a fixed percentage of markup is applied to the C&F price to obtain the MRP.
Observing a unique evolution in the physical distribution of pharmaceuticals in Bangladesh, even with the withdrawal of price control from several drugs, healthy competition, consistent demand and foreign investment has enabled the prices to remain stable and with in reasonable levels.
Unlike other countries Bangladesh pharmaceutical industry is more retail oriented and thus, mass distribution is done by the companies themselves through their own warehouses to retailers as well as wholesalers.
The sector holds a strong foundation due to the heavy local demand for medicines.
The industry’s production of quality medicines at an affordable price for millions of people in Bangladesh have made it almost self reliant in pharmaceutical products.
Increased affordability and availability of medicines has made basic as well as most of the high end medication accessible to the common man in a poverty struck nation like Bangladesh.
Examining the current pharmaceutical scenario of Bangladesh, where the National Drug Policy of Bangladesh encourages the local production of raw materials and majority of the drugs within the country offering extensive opportunities in this direction, the future appears bright and propitious.
Despite having one of the lowest annual per capita drugs consumption in the world, Bangladesh still banks on the pharmaceutical industry for extensively contributing to its economy.
According to the business forecast by the US-based pharmaceutical consulting firm Amreteck Pharma LLC, the country’s pharmaceutical sector is expected to grow by 13 per cent this year.
Pharmaceutical companies in Bangladesh should be encouraged to avail the golden opportunity of learning and amalgamating assistance from their international counterparts or investors to establish an ingenious and articulate research and development division in the country.
Organizing seminars, conferences and workshops contingent on pharmaceutical industry knowledge and information for creating successful entrepreneurial leaders and managers in Bangladesh can be an effective step towards growth.
With the development of medical and healthcare infrastructure, optimization in health awareness, rise in public purchasing power, this industry is expected to grow rapidly in the future.
The industry’s inception dates back to the 1950s when a few multinationals and local entrepreneurs established pharma laboratories and factories. With the implementation of the Drug Control Ordinance of 1982, Bangladesh ’s pharma industry transformed from an import based, to a self-sufficient and export-based economy.
