Pharmaceutical Opportunities in Bangladesh

An Expert's View about Pharmaceuticals in Bangladesh

Posted on: 4 Oct 2010

Pharmaceutical is one of the highest priority sectors in Bangladesh. Over $300 million invested in the sector, has helped modernise and create new facilities.

Sector briefing Pharmaceutical Opportunities in Bangladesh experience in pharmaceutical formulation and marketing with the Least Developed Countries WHY BANGLADESH? (LDCs) and developing ones, who need it. Among the 49 LDCs, Bangladesh has the Pharmaceutical is one of the highest priority strongest base to manufacture pharmaceutical sectors in Bangladesh. With an annual two- products. digit growth rate the Bangladesh pharmaceutical industry is now heading towards self ? sufficiency in meeting local demand. There are more than 230 small, medium, large and multinational companies operating in the country producing around 97% of the total demand. The sector is the second highest contributor to the national ex-chequer after tobacco and it is the largest white-collar intensive employment sector in Bangladesh. 95% of the total demand of Bangladesh is being met by local manufacturing. The remaining 5% basically constitute import of much specialised products like vaccines, anti- cancer products and hormone drugs. The country can continue to produce patented products until 2016 as per trade related Over $300 million invested in the intellectual property rights (TRIPS). The industry is legally permitted to reverse sector, has helped modernise and engineer, manufacture and sell generic create new facilities. A good versions of on-patent pharmaceutical products number of skilled professionals for domestic consumption as well as for export from home and abroad are to other LDCs. It created a big opportunity to expected to join the industry to make Bangladesh a new chemical entity. enrich its human resources pool Bangladesh can share its long years of UK Trade & Investment Sector briefing: Pharmaceutical Opportunities in Bangladesh Opportunities In case of manufacturing and exporting pharmaceutical products, Bangladesh being a least developed country (LDC) enjoys a patent Raw Material & Machinery Souring waiver under a deal of world Trade organisation (WTO) until 2016. Under the Bangladesh imports 80 per cent of its TRIPS Agreement Bangladesh will enjoy pharmaceutical raw materials. A good number manufacturing patented drugs until 2016. of skilled professionals from home and abroad Since most of the countries of the world will are expected to join the industry to enrich its not be able to manufacture patented drugs human resources poolThe pharmaceutical after 2005. It also approved a waiver for LDCs manufacturers in Bangladesh procure raw on exclusive marketing rights for any new drug materials from various countries namely USA, during the period. There exists an excellent UK, France, Germany, Japan, Holland, Italy, opportunity for foreign investors in bulk drug Denmark, China, Switzerland, Austria, manufacturing in Bangladesh. They will be able Hungary, India, Ireland etc. to cater to growing bulk drug need of Bangladesh as well as 49 such other patent Most if the machinery?s comes from Germany exempted countries of the world. Bangladesh and China. Some of the bigger companies are would be an excellent place for investors & using machinery from UK. relocating R&D set up for reverse engineering. Bangladesh Pharmaceutical Society is planning Toll Manufacturing to set-up a ?Reference Laboratory? for appeal, biopharmaceuticals and pharmaco kinetic Bangladesh has a very strong manufacturing analysis and research. They are also seeking base in pharmaceuticals ?toll manufacturing? of foreign participation in developing this current products as a number of companies laboratory. Opportunities have been created in have already constructed facilities as per Bangladesh for bioequivalence study, validation USFDA and UKMHRA Standard and are seeking report, clinical trials and manufacturing plant certification in other regulated markets. After audit mechanism. These sub-sectors would gaining the UK MHRA Certification Square need more investment in future. The industry Pharmaceutical, one of Bangladesh's leading created opportunities for foreign direct pharmaceutical industries is now investment. manufacturing cardiovascular drugs and diuretics for overseas clients. A good number Some of the pharmaceutical manufacturers of of Bangladeshi companies have won Bangladesh have made multimillion-dollar accreditation for export from the regulatory investments on new plant and facilities authorities in some developed countries. The conforming to USFDA and UK-MHRA Standards. accreditation will allow them to enter the They have sufficient production capacity for export market with their competitive prices and contract (?Toll?) manufacturing including an standards. abundant and cheap labour force. UK companies can exploit these opportunities to promote and sell their machinery and Investment opportunity equipment or by setting up joint-venture plants. During last couple of years a good number of investments has taken place in the b. API Park pharmaceutical sector in the form of facility expansion/upgrading and new entrants. It is Around 80% of Bangladesh's total need of API estimated that a total investment of US$ 300 is being met through imports. In 2007, million has been made in this sector in last few Bangladesh's 100 pharmaceutical plants years. Bangladesh is also a large market for imported medicine raw materials worth $214 Active Pharmaceutical Ingredients (API) and million. To meet the API demand locally the intermediates. Although Bangladesh is meeting Bangladesh government's highest planning 97% of the countries demand by local body, the executive committee of the national production it still depends largely on imported economic council (ECNEC), approved the Active bulk drugs. Around 80% of Bangladesh's total Pharmaceutical Ingredient (API) park at need of API is being met through imports. Munshiganj at an overall project cost of $31 million in May 2008. It will be the country's a. Bulk Drug Manufacturing first hub for medicine raw materials and the UK Trade & Investment Sector briefing: Pharmaceutical Opportunities in Bangladesh country can save at least 70 percent of the about 12,500 plus brands. Domestic amount by producing raw materials at the API manufacturers dominate the Bangladesh pharmaceutical industry with local companies Park. Already the local companies have lined enjoying a market share of around 80%, while up some $285 million for investment in the API the multinational Companies are having a Park. market share of 20%. Out of top ten pharmaceutical companies in Bangladesh, The Bangladesh Small and Cottage Industries seven are local pharmaceutical companies (see Corporation (BSCIC) has been assigned to set below). The top two domestic manufacturers, up the park. The project is expected to be namely square & Beximco are having a market completed by 2011. Government is also share of about 25%, while the other inviting foreign companies to invest in this ?API manufacturers contribute about 60% of the Park? Project. The corporation will develop the total pharmaceutical market of Bangladesh. infrastructure with state-of-the-art facilities including a central effluent treatment plant Top Twenty Manufacturers (ETP) and incinerator for solid and liquid waste-management. 1) Beximco 2) Square 3) ACI (MNCs) 4) Eskayef 5) Aventis (MNCs) 6) Opsonin (MNCs) UKTI publishes international business 7) Reneta 8) Glaxo (MNCs) 9) Novartis (MNCs) opportunities gathered by our network of 10) Acme 11) General 12)Orion(MNCs) 13) British Embassies, High Commissions and Incepta 14) Beacon (MNCs) 15) Jayson 16) Consulates worldwide. These opportunities Medimate, 17) Drug International appear in the Opportunities portlet on the 18)Aristopharma 19) Hudson 20) Raymond & relevant sector and country pages on the UKTI Drugs. website. By setting up a profile you can be alerted by email when relevant new opportunities are published. New or updated International Marketing alert profiles can be set in My Account on the website. As its first move towards internationalisation Bangladesh entered a few overseas markets exporting a wide range of pharmaceutical CHARACTERISTICS OF MARKET products covering all major therapeutic classes and dosage forms including some developed Market Size markets. High-tech specialised products like inhalers, suppositories, nasal sprays, indictable In 2007 total size of the pharmaceutical market and infusions are also being exported. of Bangladesh was estimated to be US$700 million. The industry produced medicines worth So far, Bangladesh have exported basic $715 million in 2007 with the market growing chemicals to many countries namely, Iran, over 12% annually over the last half a decade. Hong Kong, South Korea, Malaysia, Taiwan, The industry also exported drugs worth a Vietnam, Thailand and Nepal. After being record $32 million in the first nine months of successful in exporting basic chemicals, a few fiscal year 2007-8. At present Bangladesh is leading companies also started registering and exporting 67 different countries of the world. exporting their finished formulation in sixty seven other countries, i.e. Australia, Canada, There are about 450 generics/substances Brazil, Cambodia, France, Germany Sweden, registered in Bangladesh. Out of these 450 Sri Lanka, Singapore, UAE, USA, Indonesia, generics, 209 are in the controlled category (ie Japan, Pakistan, Kenya, etc. in the essential drug list). The remaining 333 generics are in the decontrolled category. The The export value of pharmaceuticals, though total number of brands/items that are small, is growing at 50 per cent per year. registered in Bangladesh is currently estimated Exports increased from $8.2 million in 2004 to to be 5,300 while the total number of dosage $28.3 million in 2007 and expanded further in forms and strengths are 8,300, last two of years. The export destinations have now risen from 37, to 72 countries during the At present, there are 240 registered period. Pharmaceutical manufacturers in Bangladesh. The country is producing more than 5000 Crore Taka worth of drugs and pharmaceuticals in UK Trade & Investment Sector briefing: Pharmaceutical Opportunities in Bangladesh distributors/wholesalers. In that case they The following are the export manufacturers: usually fix the distributors margin as mutually agreed. Square, Novartis, Opsonin, Acme, Beximco, In Bangladesh the promotion of Pharmaceutical Aristropharma, Eskayef, ACI, Renata, Orion, products in the mass media is strictly prohibited. Manufacturing companies can only Jayson and Hudson. Overseas retail buyers promote their brands to the health professionals by personal selling, clinical apart, these companies are also supplying meetings, seminars, symposia etc. pharmaceutical products to some world- Quality & Standardisation renowned hospitals and institutions like Raffles A competent regulatory authority known as the Directorate of Drug Administration, Bangladesh Hospital of Singapore, Jinnah Hospital of ensures compliance of the manufacturing facility and practices with the requirements of Pakistan, MEDs of Kenya, SPC of Sri Lanka and CGPM & regulation. Specification & test methods for Raw materials & Drug Products KK Women & Children Hospital of Singapore are based on British Pharmacopoeia (BP), United States Pharmacopoeia (USP), and according to BAPI. European Pharmacopoeia (EP). The Quality Assurance System in place ensures that the facility, equipment, process and test methods are validated and instruments are International Certification routinely calibrated qualified and trained. Bangladesh companies are now on the verge of Other background information on doing entering highly regulated overseas markets like business in Bangladesh can be found on UKTI?s the USA and Europe. Novertis has already website. Simply go to the Bangladesh country received EU certification and has started page where you will find information on: exporting to Europe. Squrae, SKF & Renata have already obtained the UK MHRA ? Economic background and geography certification. Other market leaders like ? Customs & regulations Beximco, is in the process of securing US-FDA, ? Selling & communications UK-MCA (MHRA), certification. ? Contacts & setting up ? Visiting and social hints and tips KEY METHODS OF DOING BUSINESS Pharmaceutical Product Price & Marketing Next steps - Regulation How UKTI can help The price of products under the controlled category is determined by the Government. At Research is critical when considering new present the list of essential drugs contains markets. UKTI provides market research around 209 items, which are in controlled services that can help UK companies doing category. While the manufacturing companies business overseas including: are allowed to fix prices of their products that are under decontrolled category. According to ? Overseas Market Introduction the Government regulation, the Service (OMIS). Bespoke research into pharmacies/chemists are entitled to get 16% potential markets, and support during retail margins on top of the trade prices of your visits overseas products. Most of the leading pharmaceutical manufacturers have their own distribution ? Export Marketing Research Scheme. network and ensure supply of products up to In-depth and subsidised service retail level. Ccompanies that do not have their administered by the British chambers of own distribution networks have to distribute Commerce on behalf of UKTI their products through UK Trade & Investment Sector briefing: Pharmaceutical Opportunities in Bangladesh 3. Bangladesh Pharmaceutical Journal Contact Published by Bangladesh Pharmaceutical your local International Trade Advisor Society if you are interested in accessing these serv Houseno.22, Dhanmondi, Road: 2,Dhaka: 1205 ices, or for general advice in developing your export strategy. Bangladesh. Phone:880-2-8611370 UKTI?s Internationa Fax:880-2-8613588 l Trade Advisers can prov Website:http://www.bps.org.bd ide you with essential and impartial advice on E-mail: bps@agni.com all aspects of international trade. Every UK region also has dedicated sector specialists who can provide advice tailored to your industry. You can trace your nearest advisor by entering your postcode into the Local Office Database UK Trade & Investment?s Tradeshow Access on the homepage of our website. Programme (TAP) can help eligible UK For new and inexperienced exporters, our businesses take part in overseas exhibitions. Passport to Export Attendance at TAP events offers significant process will take you through the benefits: mechanics of exporting. An Internat ional Trade Adviser will provide professional advice on a ? possibilities for business opportunities range of services, both at the show and in the future including financial subsidies, export ? a chance to assess new markets and documentation, contacts in overseas markets, develop useful contacts overseas visits, translating marketing material, ? grants are available if you meet the e-commerce, subsidised export training and criteria market research. ? UKTI staff overseas will be available to assist delegates When considering doing business in Find out if you are eligible to apply to attend Bangladesh, it is essential to obtain legal, this event, and more about the support UKTI financial and taxation advice. For further can offer, on the UKTI Market Entry web page. details, please contact: Other Market Visit Support may be available Suraya Jahan via your local International Trade Advisor. Trade & Investment Officer, British High Commission CONTACT LISTS United Nation Road, Baridhara, Dhaka-1212 1. The Directorate of Drug Administration Tel: 88-02-8822705, Ext.: 2267# (DDA) Fax: 88-02- 8823437 E-mail: suraya.jahan@fco.gov.uk The Directorate of Drug Administration under the Ministry of Health & Family Welfare, Government of the People's Republic of PUBLICATIONS Bangladesh, is the Drug Regulatory Authority of the country. This Directorate supervises and 1. The Pharma World implements all prevailing Drug Regulations in Published by Muhammad Masud, 60 Purana the country and regulates all activities related th Paltan Line, 4 Floor, Dhaka-1000.Bangladesh. to import, procurement of raw and packing Tel:88-02-9352216, E-mail: materials, production and import of finished thepharmaworld@gmail.com drugs, export, sale, pricing, etc. of all kinds of www.thepharmaworld.com medicine including those of Ayurvedic, Unani and Homoeopathic system. 2. Pharmabiz.com Contact: http://www.pharmabiz.com/specials/Chronicle- Index/Bangladesh2005.asp 1) Brigadier Generel Md. Ismail Hossain. Director UK Trade & Investment Sector briefing: Pharmaceutical Opportunities in Bangladesh Directorate of Drug Administration Mr.Ziaul Hoque, Secretary (BAPI) M inistry of Health & Family Welfare 105-106, Motijheel C/A House No # F-31, Road # 4, Banani, Dhaka- 1213 Dhaka-1000, Bangladesh Tel: 88-02-9556126,9553456 Phone: 88-02-8816767,9889731 Fax: 88-02- 9568166 e-mail: bdass@bol-online.com E-mail: drugs@bdonline.com www.bapi-bd.com www.ddabd.org 2).Directorate General of Health Service 5. Bangladesh Pharmaceutical Society (DGHS) Contact: Prof. Dr. Md. Abdul Fiaz Mr. Naseer Shahreer Zaheede (President) Director, Directorate General of Health Prof. Dr. Abdur Rashid (Secretary) Service Houseno.22,Dhanmondi,Road:2,Dhaka:1205 Address: Mohakhali, Dhaka Bangladesh. Phone:88-08816412, 8816459 Phone:880-2-8611370 Fax:880-2-8613588 Website:www.bps.org.bd E-mail: info@dghs.org.bd E-mail: bps@agni.com www.dghs.org.bd 3)Central Medical Store Depot (CMSD) UK Trade & Investment, Dhaka April, 2010. CMSD is responsible to procure, store and distribute medical and pharmaceutical goods and maintain equipment in different hospitals through out the country. Contact: 30, Shohid Taj Uddin Shoroni,Tejgaon Dhaka Telephone: 088-02-8115479,088-02- 9114085,088-02-9112317 FAX: 088-02-9126547 Electronic mail General Information: cmsd-dgh@bttb.net.bd Sales: Customer Support:cmsd-dgh@bttb.net.bd 4. Bangladesh Association of Pharmaceutical Industries (BAPI) Bangladesh Association of Pharmaceutical Industries (BAPI) was established in 1972 with 33 member Pharmaceutical companies. Today BAPI has 160 Pharmaceutical companies as its members. BAPI is the one & only registered & recognised association of the private sector pharmaceutical companies of Bangladesh. Its major activities include upholding interests of the pharmaceutical manufacturers of Bangladesh to the relevant forum. Contact Person: Mr.Salman F Rahman, President (BAPI) Mr.Nazmul Hassan, Secretary General (BAPI) UK Trade & Investment Sector briefing: Pharmaceutical Opportunities in Bangladesh
Posted: 04 October 2010

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