Profits of listed pharmaceutical companies showed robust growth in the past three quarters of this year, driven by growing demand, industry-insiders said.
To keep pace with demands, the entrepreneurs diversified products and expanded marketing, helping the life saving sector to grow.
Increased life expectancy, greater needs for medical treatment of the population and concomitant expansion of private healthcare services and manufacture of world-class drugs are being considered as drivers of the industry's growth, both in terms of productivity and profits.
The pharma companies posted profits ranging from 8 per cent to some 255 per cent in the third quarter of 2014 compared to that of previous corresponding period, data available with listed companies showed.
Newspapers reported common people in need of healthcare have to pay through the nose for unregulated medicine price.
Now the pharmaceutical sector uses latest technology for fulfilling quality requirements on the international market in export of drugs.
Alongside profit increase, the sector emerged as the third-largest industry in terms of contribution to government revenue.
According to Bangladesh Association of Pharmaceutical Industries (BAPI) in the three quarters of the current year, demand for local pharmaceutical products increased more than 25 per cent in domestic and international markets.
The BAPI statistics also show there are about 270 companies across the country actively running in this sector and the domestic market is growing approximately 20-25 per cent year on year.
Listed drug companies such as Square Pharmaceuticals Ltd, Beximco Pharma, Advanced Chemical Industries (ACI) Limited, IBN SINA Pharmaceutical Industry Ltd, Parma Aids, Ambee Pharma, Central Pharmaceuticals Limited, and Beacon Pharmaceuticals Limited bagged good profits during the first nine months of 2014.
"The country's pharmaceutical sector is turning to investment in diversification of products and marketing at home and abroad. As a result, most of the local pharmaceutical companies' profits increased significantly in the first nine months of 2014," BAPI secretary-general Abdul Muktadir Chowdhury told the FE
During the period, he said, their production cost has increased 10-12 per cent. But due to implementing good policy the pharma companies' profit increased as the entrepreneurs as continuously doing hard work for expanding both domestic and external markets.
He said due to political turmoil in 2013, the local pharmaceutical companies could not do business smoothly. But this year their trade has still been running better than last year's.
Further explaining the factors for the boost, he said the demand for pharmaceutical products is always high and, as a result, despite some barriers, including shortage of infrastructure, the pharma sector has been doing so well.
Beximco Pharmaceuticals Ltd (BPL), a leading manufacturer of pharmaceuticals, achieved 7 per cent profit growth to Tk 1.15 billion in the January-September 2014 period. The figure was Tk 1.8 billion for the same time of last year.
The ACI owners' operational profit during the period increased 35 per cent to Tk 662 million, up from Tk 490 million in the corresponding period of last year.
Pharma Aids Limited bagged as high as 255 per cent profit growth during nine months.
Managing Director of General Pharmaceuticals Ltd Momenul Haq said the local pharmaceutical industry could not utilize their cent-percent capacity due to some barriers.
Gas and electricity shortages-a common complaint from entrepreneurs-stand as the major roadblocks here, too.
He said, "The pharmaceutical industry is the most developed manufacturing sector in the country as it holds third-largest position in respect of revenue earning."
Professor Anwar Ul Islam, vice-president of Bangladesh Pharmaceutical Society, said: "We have been observing the local pharma industry doing good business as the sector always remains out of hartals and other political activities."
He said the local manufacturers can meet nearly 97 per cent of the domestic market demand as the local manufacturers are capable of producing high-quality drugs.
Country's pharmaceutical sector is almost self-sufficient, he added.
According to BAPI, the pharmaceutical products are being exported to many countries, including European Union (EU) countries, Afghanistan, Bhutan, Cambodia, Fiji, Hong Kong, Iraq, Macau, Malaysia, the Maldives, Myanmar, Nepal, Papua New Guinea and Sri Lanka.
SM Shafiuzzaman, Managing Director of Hudson Pharmaceuticals Ltd, said now the industry players are focusing on developed countries such as Europe, Australia, and Latin America and Gulf countries in market expansion abroad.
He said the local manufacturers are going for more development for newer generics of quality drugs at affordable prices.
In recent times, he added, healthy growth of the pharmaceutical industry inspired the entrepreneurs to constantly try to improve the quality of products.
Medicine prices had marker substantial rises, making it difficult for many to afford to buy essential drugs needed for treatment of critical diseases, according to media report.
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