Pharmaceutical industries can be the harbinger of promising growth
Saturday, 5 June 2010
Abdus Salam
Pharmaceutical industries Of Bangladesh are slowly but steadily expanding their exportable items. The country is now exporting a range of pharmaceutical products covering therapeutic classes and dosage forms.
Bangladesh is also pro-active about exporting high-tech specialized products like HFA, inhalers, suppositories, hormones, steroids, oncology, immuno-suppressant products, nasal sprays, injectibles and IV infusions. The local pull of heavy demand for medicines by the country's 150 million people also provides a strong ground for the growth of this sector.
The domestic pharmaceutical industries are now producing quality medicines at otherwise some affordable prices for the people in the home market. In some essential drugs,the country is almost self reliant. Now, about 90 per cent of local demand for medicines is met by the sector.
Malaria, dengue fever, cholera and typhoid are the major epidemics in Bangladesh. However, over the years morbidity and mortality from such scourges has been reduced substantially in the country. Increased affordability and availability of medicines have contributed to this achievement.
The average life expectancy in the country is now 61 years. This is at the top end in South Asia. Growth in local demand will naturally follow increases in per capita income. Otherwise, the per capita consumption of medicines is one of the lowest in South Asia.
A good number of new pharmaceutical factories have been set up in Bangladesh over the last five years. And some of them have started marketing with an aggressive sales or at promotion stages. There are five multinationals in operation out of over 220 units that have their own manufacturing facilities.
The country's pharmaceutical sector is active in API (active pharmaceutical ingredients). Over 20 different companies now locally manufacture 41 APIs. However, compared to large local demand, more API industries need to be set up. Pharmaceutical industries' potential will certainly multiply if the $30-million API industrial park in Munshigonj becomes operational. This park will help inject fresh momentum into pharmaceutical industry. Then the country can save at least 70 per cent of the amount that is required now for import of APIs. The park is, thus, expected to transform the industry as a major revenue earner with a large potential to export products.
Meanwhile, a good number of skilled professionals from home and abroad are joining the pharmaceutical industry's human resources pool every year. The country Bangladesh can continue with the patented products up to 2015 as per trade related intellectual property rights (TRIPS). 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 least developed countries. This has created a large opportunity to make Bangladesh as a new chemical entity. With experience for a considerable period of time in pharmaceutical formulation and marketing, Bangladesh is, thus, in a position to share those with both least developed countries LDCs and developing ones (1) where needed. Apart from the regular investment in pharmaceutical industries and API, opportunities of bioequivalence study, validation report, clinical trials and manufacturing plant audit mechanism have been created. Currently, bio equivalency tests are conducted in Singapore, Malaysia and in European countries. This results in large expenditure on the part of pharmaceutical industries. More investments in these sub-sectors would be needed in future. Foreign investors can take advantage of the flourishing industries.
Unofficial estimates suggest that over $250 million have been invested in this sector in recent years in terms of facility modernization as well as expansion of new facilities. All such investments are directed towards developing full cGMP (good menufacturing practice) compliant facilities. This can help meet stringent regulatory requirement of any country of the world.
Investment in this sector has already started paying off. Most such companies have either already received certification or are on the verge of getting approval from world toughest regulatory bodies. This will open up wider range of opportunities for the industry. In the process, the capacity of the local companies to export pharmaceutical products to any part of the globe will be enhanced. They will then be in a better position to capitalize on the $600 billion plus global pharmaceutical market.
The export value of pharmaceuticals is now small but it is reported to be growing at 40 per cent per year. The industry's inception in Bangladesh dates back to the 1950s. Then a few multinationals and local entrepreneurs started with manufacturing facilities in the then East Pakistan. By 1982, many top ranking multinationals established their manufacturing facilities in this part of the world.
Pharmaceutical industries in Bangladesh are otherwise gifted with unparalleled potential to grow in the days ahead as they enjoy a number of competitive advantages. The industry's ability to comply with guidelines of quality assurance has put it on a solid base. Most companies are equipped with World Health Organization (WHO) Good Manufacturing Practice (GMP) standards. A good number of companies won accreditation from the regulatory authorities of some developed countries. Such accreditations will enable them to enter the lucrative market with very competitive prices and standards.
For sustained growth of the industry, the government will require to give a focused attention to enhancing the capacity of the manufacturers to produce products that are competitive in prices and proven in quality terms.
Pharmaceutical industries Of Bangladesh are slowly but steadily expanding their exportable items. The country is now exporting a range of pharmaceutical products covering therapeutic classes and dosage forms.
Bangladesh is also pro-active about exporting high-tech specialized products like HFA, inhalers, suppositories, hormones, steroids, oncology, immuno-suppressant products, nasal sprays, injectibles and IV infusions. The local pull of heavy demand for medicines by the country's 150 million people also provides a strong ground for the growth of this sector.
The domestic pharmaceutical industries are now producing quality medicines at otherwise some affordable prices for the people in the home market. In some essential drugs,the country is almost self reliant. Now, about 90 per cent of local demand for medicines is met by the sector.
Malaria, dengue fever, cholera and typhoid are the major epidemics in Bangladesh. However, over the years morbidity and mortality from such scourges has been reduced substantially in the country. Increased affordability and availability of medicines have contributed to this achievement.
The average life expectancy in the country is now 61 years. This is at the top end in South Asia. Growth in local demand will naturally follow increases in per capita income. Otherwise, the per capita consumption of medicines is one of the lowest in South Asia.
A good number of new pharmaceutical factories have been set up in Bangladesh over the last five years. And some of them have started marketing with an aggressive sales or at promotion stages. There are five multinationals in operation out of over 220 units that have their own manufacturing facilities.
The country's pharmaceutical sector is active in API (active pharmaceutical ingredients). Over 20 different companies now locally manufacture 41 APIs. However, compared to large local demand, more API industries need to be set up. Pharmaceutical industries' potential will certainly multiply if the $30-million API industrial park in Munshigonj becomes operational. This park will help inject fresh momentum into pharmaceutical industry. Then the country can save at least 70 per cent of the amount that is required now for import of APIs. The park is, thus, expected to transform the industry as a major revenue earner with a large potential to export products.
Meanwhile, a good number of skilled professionals from home and abroad are joining the pharmaceutical industry's human resources pool every year. The country Bangladesh can continue with the patented products up to 2015 as per trade related intellectual property rights (TRIPS). 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 least developed countries. This has created a large opportunity to make Bangladesh as a new chemical entity. With experience for a considerable period of time in pharmaceutical formulation and marketing, Bangladesh is, thus, in a position to share those with both least developed countries LDCs and developing ones (1) where needed. Apart from the regular investment in pharmaceutical industries and API, opportunities of bioequivalence study, validation report, clinical trials and manufacturing plant audit mechanism have been created. Currently, bio equivalency tests are conducted in Singapore, Malaysia and in European countries. This results in large expenditure on the part of pharmaceutical industries. More investments in these sub-sectors would be needed in future. Foreign investors can take advantage of the flourishing industries.
Unofficial estimates suggest that over $250 million have been invested in this sector in recent years in terms of facility modernization as well as expansion of new facilities. All such investments are directed towards developing full cGMP (good menufacturing practice) compliant facilities. This can help meet stringent regulatory requirement of any country of the world.
Investment in this sector has already started paying off. Most such companies have either already received certification or are on the verge of getting approval from world toughest regulatory bodies. This will open up wider range of opportunities for the industry. In the process, the capacity of the local companies to export pharmaceutical products to any part of the globe will be enhanced. They will then be in a better position to capitalize on the $600 billion plus global pharmaceutical market.
The export value of pharmaceuticals is now small but it is reported to be growing at 40 per cent per year. The industry's inception in Bangladesh dates back to the 1950s. Then a few multinationals and local entrepreneurs started with manufacturing facilities in the then East Pakistan. By 1982, many top ranking multinationals established their manufacturing facilities in this part of the world.
Pharmaceutical industries in Bangladesh are otherwise gifted with unparalleled potential to grow in the days ahead as they enjoy a number of competitive advantages. The industry's ability to comply with guidelines of quality assurance has put it on a solid base. Most companies are equipped with World Health Organization (WHO) Good Manufacturing Practice (GMP) standards. A good number of companies won accreditation from the regulatory authorities of some developed countries. Such accreditations will enable them to enter the lucrative market with very competitive prices and standards.
For sustained growth of the industry, the government will require to give a focused attention to enhancing the capacity of the manufacturers to produce products that are competitive in prices and proven in quality terms.