Pharmaceutical Opportunities

An Expert's View about Retail Sale of Pharmaceutical, Cosmetic and Toilet Articles in Bangladesh

Last updated: 26 Sep 2011

Pharmaceutical is one of the highest priority sectors in Bangladesh. With an annual two-digit growth rate the Bangladesh pharmaceutical industry is now heading towards self – sufficiency in meeting local demand.

Sector briefing Pharmaceutical Opportunities in Bangladesh. WHY BANGLADESH? engineer, manufacture and sell generic Pharmaceutical is one of the highest priority versions of on-patent pharmaceutical products sectors in Bangladesh. With an annual two- for domestic consumption as well as for export digit growth rate the Bangladesh to other least Developed Countries (LDCs). It pharmaceutical industry is now heading created a big opportunity to make Bangladesh towards self ? sufficiency in meeting local a new chemical entity. Bangladesh can share demand. With over US$250 million investments its long years of experience in pharmaceutical in the pharmaceutical industry of Bangladesh formulation and marketing with the LDCs and the sector has emerged as the country?s most developing ones, who need it. Among the 50 developed hi-tech one that contributes LDCs, Bangladesh has the strongest base to significantly to the national economy. There manufacture pharmaceutical products. are more than 240 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. Mo re than 95% of the total demand of Bangladesh is being met by local manufacturing. The remaining 5% basically constitute import of much specialised products Over $300 million invested in the like vaccines, anti-cancer products and sector, has helped modernise and hormone drugs. create new facilities. A good number of skilled professionals The country can continue to produce patented from home and abroad are products until 2016 as per trade related intellectual property rights (TRIPS). The expected to join the industry to industry is legally permitted to reverse enrich its human resources pool 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 pool. The 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 of the machinery 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 The Pharma Industry of Bangladesh is now on the of Bangladeshi companies have won verge of entering highly regulated overseas markets accreditation for export from the regulatory like USA and Europe. In this connection, several authorities in some developed countries. The pharmaceutical manufacturers have already made accreditation will allow them to enter the huge investments in their new state of art export market with their competitive prices and manufacturing facilities. A number of companies standards. have already obtained or in the process of obtaining UKMHRA, EU, TGA, AUSTRALIA and GCC certifications. They have sufficient production capacity for contract (?Toll?) manufacturing Investment opportunity including an abundant and cheap labour force. UK companies can exploit these opportunities During last couple of years a good number of to promote and sell their machinery and investments have taken place in the equipment or by setting up joint-venture pharmaceutical sector in the form of facility plants. expansion/upgrading and new entrants. It is estimated that a total investment of US$ 300 m b. API Park illion has been made in this sector in last few years. Bangladesh is also a large market for Around 80% of Bangladesh's total need of API Active Pharmaceutical Ingredients (API) and is being met through imports. In 2007, intermediates. Although Bangladesh is meeting 97% of the countries demand by local Bangladesh's 100 pharmaceutical plants production it still depends largely on imported imported medicine raw materials worth $214 bulk drugs. Around 80% of Bangladesh's total million. To meet the API demand locally the need of API is being met through imports. Bangladesh government's highest planning body, the executive committee of the national a. Bulk Drug Manufacturing economic council (ECNEC), approved the Active UK Trade & Investment Sector briefing: Pharmaceutical opportunities in Bangladesh Pharmaceutical Ingredient (API) park at to be 5,300 while the total number of dosage Munsh forms and strengths are 8,300, iganj at an overall project cost of $31 milli on in May 2008. It will be the country's At present, there are around 250 registered first hub for medicine raw materials and the Pharmaceutical manufacturers in Bangladesh. country can save at least 70 percent of the The country is producing more than USD 973 amount by producing raw materials at the API million worth of drugs and pharmaceuticals in Park. Already the local companies have lined about 12,500 plus brands. Domestic up some $285 million for investment in the API manufacturers dominate the Bangladesh Park. pharmaceutical industry with local companies enjoying a market share of around 80%, while The Bangladesh Small and Cottage Industries the multinational Companies are having a Corporation (BSCIC) have been assigned to set market share of 20%. Out of top ten up the park. The project is expected to be pharmaceutical companies in Bangladesh, completed by 2012. It would be a giant leap seven are local pharmaceutical companies (see for the industry as most of pharmaceutical raw below). The top two domestic manufacturers, materials could be produced locally when the namely square & Beximco are having a market project will be implemented. Government is share of about 25%, while the other also inviting foreign companies to invest in this manufacturers contribute about 60% of the ?API Park? Project. The corporation will develop total pharmaceutical market of Bangladesh. the 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 Smith Kline (MNCs) 9) opportunities gathered by our network of Novartis (MNCs) 10) Acme 11) General British Embassies, High Commissions and 12)Orion(MNCs) 13) Incepta 14) Beacon Consulates worldwide. These opportunities (MNCs) 15) Jayson 16) Medimate, 17) Drug appear in the Opportunities port let on the International 18)Aristopharma 19) Hudson 20) relevant sector and country pages on the UKTI Raymond & 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 2008 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, by 12% annually and it has increased at 13% Hong Kong, South Korea, Malaysia, Taiwan, in 2010. The industry also exported drugs Vietnam, Thailand and Nepal. After being worth a record $45.67 million in the fiscal year successful in exporting basic chemicals, a few 2008-9. At present Bangladesh is exporting 72 leading companies also started registering and 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 According to Export Promotion Bureau (EPB), UK Trade & Investment Sector briefing: Pharmaceutical opportunities in Bangladesh pharmaceutical export witnessed 6.21 per cent manufacturers have their own distribution growth in the fiscal 2008-09, earning US$45.67 network and ensure supply of products up to million, which was recorded US$ 43 million in retail level. Companies that do not have their fiscal 2007-08. The export destinations have own distribution networks have to distribute now risen from 37, to 72 countries during the their products through period. distributors/wholesalers. In that case they usually fix the distributors margin as mutually agreed. The following are the export manufacturers: In Bangladesh the promotion of Pharmaceutical products in the mass media is strictly Square, Novartis, Opsonin, Acme, Beximco, prohibited. Manufacturing companies can only promote their brands to the health Aristropharma, Eskayef, ACI, Renata, Orion, professionals by personal selling, clinical meetings, seminars, symposia etc. Jayson and Hudson. Overseas retail buyers Quality & Standardisation apart, these companies are also supplying A competent regulatory authority known as the pharmaceutical products to some world- Directorate of Drug Administration, Bangladesh ensures compliance of the manufacturing renowned hospitals and institutions like Raffles facility and practices with the requirements of CGPM & regulation. Specification & test Hospital of Singapore, Jinnah Hospital of methods for Raw materials & Drug Products are based on British Pharmacopoeia (BP), Pakistan, MEDs of Kenya, SPC of Sri Lanka and United States Pharmacopoeia (USP), and European Pharmacopoeia (EP). KK Women & Children Hospital of Singapore The Quality Assurance System in place ensures according to BAPI. that the facility, equipment, process and test methods are validated and instruments are routinely calibrated qualified and trained. International Certification Bang Other background information on doing ladesh companies are now on the verge of 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 UK Trade & Investment Sector briefing: Pharmaceutical opportunities in Bangladesh Suraya Jahan ? Export Marketing Research Scheme. Trade & Investment Officer, British High In-depth and subsidised service Commission administered by the British chambers of United Nation Road, Baridhara, Commerce on behalf of UKTI Dhaka-1212 Tel: 88-02-8822705, Ext.: 2267# Contact your local International Trade Advisor Fax: 88-02- 8823437 if you are interested in accessing these E-mail: services, or for general advice in developing your export strategy. PUBLICATIONS UKTI?s International Trade Advisers can provide you with essential and impartial advice 1. The Pharma World on all aspects of international trade. Every UK Published by Muhammad Masud, 60 Purana th region also has dedicated sector specialists Paltan Line, 4 Floor, Dhaka-1000.Bangladesh. who can provide advice tailored to your Tel:88-02-9352216, E-mail: industry. You can trace your nearest advisor by entering your postcode into the Local Office Database on the homepage of our website. For new and inexperienced exporters, our 2. Passport to Export process will take you through the mechanics of exporting. An Index/Bangladesh2005.asp International Trade Adviser will provide professional advice on a range of services, including financial subsidies, export 3. Bangladesh Pharmaceutical Journal documentation, contacts in overseas markets, Published by Bangladesh Pharmaceutical overseas visits, translating marketing material, Society e-commerce, subsidised export training and Houseno.22, Dhanmondi, Road: 2,Dhaka: 1205 market research. Bangladesh. Phone:880-2-8611370 UK Trade & Investment?s Tradeshow Access Fax:880-2-8613588 Programme (TAP) can help eligible UK Website: businesses take part in overseas exhibitions. E-mail: Attendance at TAP events offers significant benefits: CONTACT LISTS ? possibilities for business opportunities both at the show and in the future 1. The Directorate General of Drug ? a chance to assess new markets and Administration (DDA) develop useful contacts ? grants are available if you meet the The Directorate of Drug Administration under criteria the Ministry of Health & Family Welfare, ? UKTI staff overseas will be available to Government of the People's Republic of assist delegates Bangladesh, is the Drug Regulatory Authority of the country. This Directorate supervises and Find out if you are eligible to apply to attend implements all prevailing Drug Regulations in this event, and more about the support UKTI the country and regulates all activities related can offer, on the UKTI Market Entry web page. to import, procurement of raw and packing materials, production and import of finished Other Market Visit Support may be available drugs, export, sale, pricing, etc. of all kinds of via your local International Trade Advisor. medicine including those of Ayurvedic, Unani and Homoeopathic system. When considering doing business in Bangladesh, it is essential to obtain legal, Contact: financial and taxation advice. For further Major General Md. Abul Kalam Azad details, please contact: Director General UK Trade & Investment Sector briefing: Pharmaceutical opportunities in Bangladesh Directorate General of Drug the pharmaceutical manufacturers of Adm Bangladesh to the relevant forum. inistration M inistry of Health & Family Welfare Contacts: 105-106, Motijheel C/A Mr.Salman F Rahman, President (BAPI) Dhaka-1000, Bangladesh Tel: 88-02-9556126, 9553456 Mr.Abdul Muktadir, Secretary General (BAPI) Fax: 88-02- 9568166 E-mail: Mr.Ziaul Hoque, Secretary (BAPI) House No # F-31, Road # 4, Banani, Dhaka- 1213 2. Directorate General of Health Service (DGHS) Phone: 88-02-8816767, 9889731 e-mail: Contact: Prof. Dr. Khondhaker Md. Shefyetullah Director General, Directorate General of 5. Bangladesh Pharmaceutical Society Health Service Bangladesh Pharmaceutical Society is an Address: Mohakhali, Dhaka organisation of the registered pharmacists Phone: 88-02-8816412, 8816459 of the country, established in 1972 with the Fax: 88-02-8813875 primary objectives of advancing the E-mail: profession of pharmacy in Bangladesh and making the role of pharmacists effective and meaningful in formulating and implementing the National Health 3. Central Medical Store Depot (CMSD) Programme. CMSD is responsible to procure, store and Contact: distribute medical and pharmaceutical Professor ABM Faruk (President) goods and maintain equipment in different Houseno.22, Road: 2, hospitals through out the country. Dhanmondi Dhaka: 1205 Bangladesh. Phone: 880-2-8611370 Contact: Fax: 880-2-8613588 Brig Gen Md. Shahidul Hoque Mallik Director, Store & Supply E-mail: Central Medical Store Depot (CMSD) 30, Shohid Taj Uddin Shoroni Tejgaon, Dhaka Telephone: 088-02-8115479, 088-02- 9114085, 088-02-9112317 FAX: 088-02-9126547;cmsd- 4. Bangladesh Association of Pharmaceut ical Industries (BAPI) Bangladesh Association of Pharmaceutical Industries (BAPI) was established in 1972 with 33 member Pharmaceutical companies. Today UK Trade & Investment, Dhaka BAPI has 160 Pharmaceutical companies as its September 2011. members. BAPI is the one & only registered & recognised association of the private sector pharmaceutical companies of Bangladesh. Its major activities include upholding interests of UK Trade & Investment Sector briefing: Pharmaceutical opportunities in Bangladesh
Posted: 26 September 2011, last updated 26 September 2011