Bangladesh Pharmaceuticals: An industry on the rise

The pharmaceutical sector is key to modernizing healthcare. At first, only developed countries produced pharma products, eventually the sector diversified to include least developed countries (LDC) as manufacturers. Among these countries is Bangladesh which, despite being an LDC, was able to develop a successful pharmaceutical industry.

A FOUR-DECADE JOURNEY TO PHARMACEUTICAL EXCELLENCE

The rise of the pharmaceutical industry in Bangladesh can be attributed to its 1982 Drug Ordinance which created a market for local companies producing generic formulations. Local firms grabbed the opportunity, leading to the industry experiencing a dramatic growth.

The sector has been evolving since the early ‘80s and continues to be stronger. Nowadays, the South Asian country takes pride in being the only LDC that has a well-developed pharmaceutical sector, with one of the fastest growing pharma economies in the global market. Manufacturers can produce almost all types of medicines from insulin to hormones.

The Bangladeshi pharma industry meets 98 percent of the total medicinal requirements of the local market, compared to more than four decades ago when the country was 98 percent reliant on imported pharmaceutical products.

Now it exports medicines to over 150 countries, including the USA, the UK, Canada, Australia, Germany, even the European Union. Pharmaceutical companies continue to expand their businesses with the aim of further strengthening the export market. Bangladesh exported medicines amounting to US$189 million in 2022, the second largest single sector after ready-made garments.

A PROMISING PHARMACEUTICAL SECTOR

The size of the pharmaceutical market is expected to see a growth of 114 percent and earn more than US$6 billion dollars by 2025, making Bangladesh the “Generic Drug Hub” of Asia.

The industry continues its research projects on generic formulation development and has already developed specialized, high-tech formulations which are very difficult to replicate.

Leading companies have focused on specialized dosage delivery systems to create strong differentiation, and successfully developed innovations such as metered dose inhalers (MDI), dry powder inhalers (DPI), lyophilized injectables, prefilled syringes, oral thin films, multi-layer tablets, among many others. Bangladeshi pharmaceutical products remain competitive, with the global generics market valued at about US$1.3 trillion and is projected to grow to US$1.52 trillion by 2023. With the rising cost of health care, particularly medicines, even developed countries are increasingly promoting the use of generic drugs and multinational companies are steadily outsourcing their production as a cost-cutting measure.

Given this context, Bangladesh offers tremendous manufacturing cost advantages, hence, medicine prices in the country ranks among the lowest in the world without sacrificing quality. Moreover, Bangladesh is allowed to waive patents until 2033, owing to the Trade-Related Aspects of Intellectual Property Rights or TRIPS Agreement. With this, the country is allowed to produce patented medicines without

The past years has seen the South Asian country’s rise to being the ‘Generic Hub of Asia.’

prior permission from the innovator.

It achieved the exemption from TRIPS by being the only one among 49 LDCs to have adequate manufacturing capability and a quasi-self-sufficient sector, where firms legally produce newly patented generic drugs. This means that Bangladesh can export to any country if the medicine is not under patent. It enjoys export opportunities to other LDCs or non-World Trade Organization (WTO) countries that have not implemented product patent protection.

Pharmaceutical companies in Bangladesh, then, are ideally positioned to provide high quality contract manufacturing services to companies from developed countries, with facilities that are approved by global regulatory authorities, cost advantages due to competitive white-collar labor and energy, proven track record of medical necessity criteria or MNC partnerships, expertise in diverse delivery systems, specialized high tech products, and an investment-friendly environment.

STRENGTHENING THE PHARMA INDUSTRY; ZEROING IN ON THE PH

To locally produce APIs, the main chemical components of medicines,

Bangladesh is currently developing an environmentally sustainable 200acre industrial park, with 42 plots devoted to pharmaceutical ingredient manufacturing industrial units. Once Bangladesh becomes capable of producing its own APIs, the pharmaceutical sector will be much more competitive in the global market.

Furthermore, the Association of Pharmaceutical Industries in Bangladesh remains strong. Formed in 1972, there are currently 154 pharmaceutical companies which are registered members of the association. The group has made tremendous contributions to the remarkable growth of Bangladesh’s pharma sector from US$25 million in 1982 to about US$3.5 billion today. Leading companies have Good Manufacturing Practice (GMP) accreditations like USFDA, UK MHRA, EU GMP, Health Canada, TGA Australia, ANVISA Brazil, and GCC.

These said, the Philippines is a market of 110 million consumers, with a health sector that is primarily dependent on imported pharmaceutical products.

Some Asian countries are now penetrating the Filipino market, including Bangladesh. Considering the high quality and the competitive prices offered by Bangladeshi pharmaceutical companies, Filipino consumers may see more of their medical products available at friendlier price tags in local drugstores soon.