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The most notable aspect about the development of Bangladesh's pharmaceutical industry is the emergence of new local companies in the wake of the Drug Control Ordinance that came into operation in 1982. Before that, local companies could hardly operate in this sector largely due to lack of resources. The Drug Control Ordinance led to lower dependence on imported drugs involving a substantial amount of foreign currency funds to foot the import bill for drugs not produced in the country. The same ordinance put restrictions on import of high priced raw materials, besides subjecting the erstwhile foreign companies to control in areas of manufacturing, imports, distribution and sale of products.
The Bangladesh pharmaceutical market has expanded considerably in recent years. There is an increasing awareness and need for the branded quality products amongst the affluent population.
In the pharmaceutical sector corporate image, excellent service and quality products are the three important factors. At the same time relationship between companies and the medical professionals and the Drug Administration plays a vital role. Strong distribution network always gives an additional impact for a company. Almost all companies have 12 - 16 depot all over the countries.
Bangladesh Health Sector
In 2000 total number of hospitals were 1289 wherein 663 were govt. and 626 were non-govt. In 2000 registered physicians were 30864. Persons per physician were 4147. Registered nurses were 17446 in 2000. Total government expenditure on health including family planning was Taka 21.5 billion. Per capita government expenditure on health and family planning was Taka 168. Despite frequent devaluation of Bangladesh currency against US dollar and increase in price of essential commodities, drug is the only essential which did not witness any significant price hike from 1992 onwards; the price of most essential drugs remained unchanged. This has enabled patients to purchase quality drugs at an affordable cost.
Currently there are 241 licensed allopathic drug-manufacturing units in the country. They manufacture about 5600 brands of medicine in different dosage forms. Out of these manufacturing units only 156 units are in active production. There are 1338 wholesale drug license holders and about 45000 retail drug license holders in Bangladesh. Around 95% of the total demand of medicinal products is met by local production. Local companies increased their share 25% to 65% on total annual production between 1981 and 2002.
A most remarkable progress the industry has made in recent times is the phenomenal increase in the local production of basic chemicals. In pharmaceuticals industry about 50,000 skilled and 15000 unskilled people are associated. Almost all major companies are trying to manufacture their drugs ethically, try to improve standard of GMP. The booming thing at present is ISO Certification. Almost all major pharmaceutical companies already achieved ISO certification in 2001 or going to achieve soon. This enables the companies to export drugs to other countries. Two major companies in Bangladesh -- Square, Beximco -- have already upgraded their manufacturing plants with an aim to win US FDA approval.
Growth rates of some small companies are really high. For the last couple of years, they have been the fasted growing companies. At times their growth rate is more than 50%. New product launch is one of the major factors of growth. Merger of bigger companies does not have any real impact in Bangladesh market. Specialised products (like insulin) are still imported from outside the country. Drugs import from India or Pakistan have increased. Moreover, a lot of smuggled drugs too are coming from these countries. Lower price of these drugs make them a sure bet in the rural areas.
In the beginning, the sales of pharmaceutical products were growing in the urban areas but now it is growing faster in the rural areas. The setting up of Upazila Health Complexes ensured presence of MBBS doctors in the rural areas. Beside, the private sector is also establishing small clinics in the rural areas creating a growing market for pharmaceutical products. Almost all the companies tried to improve their network in rural areas in 2001. NGOs are also helping to improve health facilities.
Pharmaceutical Market Review 2002
During the Fourth Quarter 2002 the Bangladesh Pharmaceutical Index had shown the pharmaceuticals market to be of Taka 24576 million in local currency and the market growth stood at 10%. Bangladesh pharmaceutical market has been growing more than twenty percent since last two years. One of the main reasons for this growth could be the introduction of several new molecules recently by the pharmaceuticals companies. Moreover, few new companies or relatively small manufacturer shares have increased substantially. Square Pharmaceuticals has been maintaining the number one position followed by Beximco Pharmaceuticals. Both of these local companies have been holding the same position for the last several years. Aventis Pharma holds the third position. The ACME Laboratories has taken up the fourth position. A new manufacturing company Incepta Pharmaceuticals has established itself as an emerging one.
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Source: Internet
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