Potential for developing Bangladesh's pharmaceutical sector
Monday, 21 December 2009
Ferdous Alam
The export value of pharmaceuticals, though small, is growing at 50 per cent per year. Exports increased from $8.2 million in 2004 to $28.3 million in 2007 and expanded further in last two of years. The export destinations have now risen from 37, to 72 countries during the period.
The inception in the 1950s was small, with a handful local and multinational companies producing medicines in the then East Pakistan. By 1982, many top ranking multinationals established their manufacturing facilities in Bangladesh.
Bangladesh's pharmaceutical industry has potential to grow and compete in the international market. Its ability to comply otherwise with the guidelines of quality assurance provides it the competitive advantage. Most companies follow the good manufacturing practice (GMP) standards, set by the UN World Health Organisation (WHO).
Bangladesh can compete with countries like India, China, Brazil and Turkey in the international export market due to its quality compliance. If enjoys the exemption limit until 2016 under the provisions of the World Trade Organisation with regard to generic, patients and other related matters. The ability of the Bangladesh industry is otherwise undisputed about achieving excellence.
A good number of Bangladeshi companies have won accreditation for export from the regulatory authorities in some developed countries. The accreditation will allow them to enter the export market with their competitive prices and standards. They are now international players. Bangladesh drug policy requires all its pharmaceutical manufacturers to strictly comply with the standards.
The Current Good Manufacturing Practice (cGMP) is recognised worldwide for its holistic approach to ensure the quality of food and pharmaceutical products. With its pharmaceutical export basket growing fast, Bangladesh now exports a wide range of major therapeutic capsules, syrups and tablets.
The country exports high-tech specialised products like HFA, inhalers, suppositories, hormones, steroids, oncology, immunosuppressant products, nasal sprays, injectibles and IV infusions. The local pull of demand for medicines set the industry in a second footing.
The industry produces quality medicines for millions of people in Bangladesh. Almost self-reliant in pharmaceutical products, the industry meets 97 per cent of national demand for medicines.
Epidemics like malaria, dengue, cholera and typhoid, no more kill as many people in Bangladesh as they once did. Affordability and availability of medicines contributed to the achievement.
Bangladesh tops South Asia with its average life expectancy of 61 years though per capita consumption of medicines is one of the lowest in the region. Over 50 new factories came up in last three years, of which about two dozens took to aggressive marketing. Out of 230 companies, 200, including five multinationals, have their manufacturing facilities.
At least 21 companies produce 41 active pharmaceutical ingredients (API). To feed the local industry, more API industries are needed. The recent approval, as was reported in a section of the media, to a 30 billion dollar API industrial park in Munshiganj will inject fresh momentum to the pharmaceutical industry. Bangladesh can save at least 70 per cent of expenditure on raw materials when the API part goes into production.
Bangladesh imports 80 per cent of its pharmaceutical raw materials. A good number of skilled professionals from home and abroad are expected to join the industry to enrich its human resources pool.
The country can continue to produce patented products until 2016 as per trade related intellectual property rights (TRIPS). The industry is legally permitted to reverse engineer, manufacture and sell generic versions of on-patent pharmaceutical products for domestic consumption as well as for export to other LDCs. It created a big opportunity to make Bangladesh a new chemical entity. Bangladesh can share its long years of experience in pharmaceutical formulation and marketing with the Least Developed Countries (LDCs) and developing ones, who need it. Opportunities have been created in Bangladesh for bioequivalence study, validation report, clinical trials and manufacturing plant audit mechanism.
For bio equivalency tests alone in Singapore, Malaysia or in European countries Bangladesh pharmaceutical industry has to spend a lot of money now. These sub-sectors would need more investment in future. The industry created opportunities for foreign direct investment.
Over $250 million invested in the sector, has helped modernise and create new facilities.
Full cGMP compliant facilities have been developed to meet the regulatory requirement of any country in the world.
The investment has helped the companies get certification from the international regulatory bodies. Bangladeshi companies are now in a position to export pharmaceutical products to any part of the globe.
The export value of pharmaceuticals, though small, is growing at 50 per cent per year. Exports increased from $8.2 million in 2004 to $28.3 million in 2007 and expanded further in last two of years. The export destinations have now risen from 37, to 72 countries during the period.
The inception in the 1950s was small, with a handful local and multinational companies producing medicines in the then East Pakistan. By 1982, many top ranking multinationals established their manufacturing facilities in Bangladesh.
Bangladesh's pharmaceutical industry has potential to grow and compete in the international market. Its ability to comply otherwise with the guidelines of quality assurance provides it the competitive advantage. Most companies follow the good manufacturing practice (GMP) standards, set by the UN World Health Organisation (WHO).
Bangladesh can compete with countries like India, China, Brazil and Turkey in the international export market due to its quality compliance. If enjoys the exemption limit until 2016 under the provisions of the World Trade Organisation with regard to generic, patients and other related matters. The ability of the Bangladesh industry is otherwise undisputed about achieving excellence.
A good number of Bangladeshi companies have won accreditation for export from the regulatory authorities in some developed countries. The accreditation will allow them to enter the export market with their competitive prices and standards. They are now international players. Bangladesh drug policy requires all its pharmaceutical manufacturers to strictly comply with the standards.
The Current Good Manufacturing Practice (cGMP) is recognised worldwide for its holistic approach to ensure the quality of food and pharmaceutical products. With its pharmaceutical export basket growing fast, Bangladesh now exports a wide range of major therapeutic capsules, syrups and tablets.
The country exports high-tech specialised products like HFA, inhalers, suppositories, hormones, steroids, oncology, immunosuppressant products, nasal sprays, injectibles and IV infusions. The local pull of demand for medicines set the industry in a second footing.
The industry produces quality medicines for millions of people in Bangladesh. Almost self-reliant in pharmaceutical products, the industry meets 97 per cent of national demand for medicines.
Epidemics like malaria, dengue, cholera and typhoid, no more kill as many people in Bangladesh as they once did. Affordability and availability of medicines contributed to the achievement.
Bangladesh tops South Asia with its average life expectancy of 61 years though per capita consumption of medicines is one of the lowest in the region. Over 50 new factories came up in last three years, of which about two dozens took to aggressive marketing. Out of 230 companies, 200, including five multinationals, have their manufacturing facilities.
At least 21 companies produce 41 active pharmaceutical ingredients (API). To feed the local industry, more API industries are needed. The recent approval, as was reported in a section of the media, to a 30 billion dollar API industrial park in Munshiganj will inject fresh momentum to the pharmaceutical industry. Bangladesh can save at least 70 per cent of expenditure on raw materials when the API part goes into production.
Bangladesh imports 80 per cent of its pharmaceutical raw materials. A good number of skilled professionals from home and abroad are expected to join the industry to enrich its human resources pool.
The country can continue to produce patented products until 2016 as per trade related intellectual property rights (TRIPS). The industry is legally permitted to reverse engineer, manufacture and sell generic versions of on-patent pharmaceutical products for domestic consumption as well as for export to other LDCs. It created a big opportunity to make Bangladesh a new chemical entity. Bangladesh can share its long years of experience in pharmaceutical formulation and marketing with the Least Developed Countries (LDCs) and developing ones, who need it. Opportunities have been created in Bangladesh for bioequivalence study, validation report, clinical trials and manufacturing plant audit mechanism.
For bio equivalency tests alone in Singapore, Malaysia or in European countries Bangladesh pharmaceutical industry has to spend a lot of money now. These sub-sectors would need more investment in future. The industry created opportunities for foreign direct investment.
Over $250 million invested in the sector, has helped modernise and create new facilities.
Full cGMP compliant facilities have been developed to meet the regulatory requirement of any country in the world.
The investment has helped the companies get certification from the international regulatory bodies. Bangladeshi companies are now in a position to export pharmaceutical products to any part of the globe.