Overall Impact of Pharmaceutical
Industries in Economic Development of
Bangladesh
Welcome To The Project
Overview of Pharmaceutical Industries
The pharmaceutical industry in Bangladesh is
one of the most developed technology sectors
within Bangladesh. This sector provides 97% of
the total medicinal requirement of the local
market. Bangladeshi pharmaceutical
companies exports are increasing over the
time and Bangladesh export pharmaceutical
products to 105 countries. Bangladesh
pharmaceutical export will cross $ 1 billion
landmark within 2018.
Top Ten Pharmaceutical Industries at a glance
Depending on the Annual Performance through the year 2017-18
Square Pharmaceuticals Ltd.
Incepta Pharmaceuticals Ltd.
Beximco Pharmaceuticals Ltd.
Renata Limited
Opsonin Pharma Limited
Eskayef Bangladesh Ltd.
ACI Limited
Aristopharma Ltd.
Healthcare Pharmaceuticals Limited
ACME Laboratories Ltd.
History of Pharmaceutical Industries
 The pharmaceutical sector is one of the thrust sectors in
Bangladesh. Before Liberation, there was hardly any
pharmaceutical enterprise in Bangladesh
 Right after liberation war three fourth of the
pharmaceutical industries was dominated by multinational
companies.
 The National Drug Policy (NDP) in 1982 and 2005 has major
impact in the development and growth of the Bangladesh
pharmaceutical industry.
 Today, BAPI (Bangladesh Aushad Shilpa Samity in Bengali) is
a very strong organization having as many as 144
companies as its members.
Management of Pharmaceutical Industries
Management of
Pharmaceutical
Industries
Human Resources
Like other industries,
pharmaceutical industry also
believes that the human
resources are most valuable
asset for the organization.
Training and
Development
Training refers to
instruction provided for a
current job &
Development, on the other
hand, has a broader scope.
Principles of Pharmaceutical Industries
Mission
•To produce and provide quality & innovative healthcare relief for
people.
•Maintain stringently ethical standard in business operation.
OBJECTIVE
•To conduct transparent business operation.
•To attain the mission reflected by their vision.
TARGET
•To maintain customer trust and satisfaction .
•To overcome local and international compliance of 46 LDCs (Least
Developing Country) barrier.
Principles of Pharmaceutical Industries
STRENGTH
• The commitment of both management and workers
• To deliver value to the clients, customers, consumers and well-
wishers.
GOAL
• Inspired by a single goal for your health
• To shape the dreams with creativity
ENVIRONMENT
• All necessary precautions will be taken to reduce the
environmental impact
• The company already got the environmental clearance.
How Pharmaceutical Companies Sells Products
Impact of Pharmaceutical Industries on Balance
of Trade
 Import:
Importing is acquiring or purchasing the goods or
products which have been made in another country.
Bangladesh is importing the medicinal products from
different countries, especially from India.
 Two categories of raw materials used and imported
1. Active ingredients/basic materials and
2. Excipients.
Year Imported (In US Million $)
Raw Material
Packaging
Material
Finished Goods
2011 125.49 14.31 45.42
2012 136.92 15.61 35.41
2013 91.94 8.06 31.66
2014 105.93 9.67 39.92
2015 99.03 9.39 39.31
Year
Total Medicine
Consumption (in
Million US $)
Imported Amount (in
million US $)
Local Medicine (in
million US $)
2011 498.5 23.43 475.07
2012 512.6 28.27 483.79
2013 536.42 34.8 501.62
2014 552.58 33.15 519.43
2015 567.3 35.78 531.52
0
100
200
300
400
500
600
2011 2012 2013 2014 2015
Amount(inmillionUS$)
Year
Yearly Consume Cost of Medicine and Imported Cost
Total Medicine Consumption (in Million
US $)
Imported Amount (in million US $)
Local Medicine (in million US $)
From the above figure, it can be easily found that the maximum
demand of medicine is met by the product produced by our locally
established organization (locally owned and multinational).
• Exporting
 Exports are goods and services produced by a firm in one
country and then sent to another country. Export of
pharmaceutical products of Bangladesh is still in infancy.
But the rate of establishment of pharmaceuticals industries
in private sector is increasing and they have already entered
the export market with their finished products.
• Export Policy of Bangladesh:
 Encouraging labor-intensive
 Ensuring availability of raw materials
 Improving the quality of products
 Initiating new strategies for the expansion of the markets
Year Exports (US $ million) Share of total exports (%)
2010-11 27.5 0.3
2011-12 28.2 0.2
2012-13 43 0.3
2013-14 46 0.3
2014-15 41 0.3
Medicine Exporting Scenario of Bangladesh
From the above figure, it can be concluded that the trend of export is
upward. According to the drug administration; Bangladesh could not
export the expected amount of pharmaceuticals products in the year 2015
due to some political problems. Drug administration hopes that the trend
will continue in future.
2010-11 2011-12 2012-13 2013-14 2014-15
Exports (US$ million) 27.5 28.2 43 46 41
Share of total exports (%) 0.3 0.2 0.3 0.3 0.3
0
5
10
15
20
25
30
35
40
45
50
Medicine Exporting Scenario of
Bangladesh
Year Export
Amount( US $
Million)
Import
Amount( US $
Million)
Account
valued by
Export &
Import
Situation
2010-11 27.5 23.43 4.07 Surplus
2011-12 28.2 28.27 (0.07) Deficit
2012-13 43 34.8 8.2 Surplus
2013-14 46 33.15 12.85 Surplus
2014-15 41 35.78 5.22 Surplus
Impact of Pharmaceuticals Industries on Balance of Trade (BOT)
0
5
10
15
20
25
30
35
40
45
50
2010-11 2011-12 2012-13 2013-14
Impact of Pharmaceuticals Industries on Balance of
Trade (BOT)
Export Amount( US $ Million)
Import Amount( US $ Million)
As we notice the graph we can clearly assume that, the export of
pharmaceutical products is always greater than importing from other countries.
Which indicates a development growth of economy of the country.
Problems of Pharmaceutical Industries
•Due to lack of well equipped drug testing laboratory
Drug Administration cannot monitor the quality of drugs
manufactured by different pharmaceutical companies in
Bangladesh.
Lack of modern
drug testing
laboratory
•Pharmaceutical industries are now in high-end
development trend that is being carried out by leading
companies. Increasingly, many companies are competing
with new pharmaceutical industries.
Marketing
strategy
•Due to lack of adequate manpower and effective training
programs they can’t execute their duties properly.
Problems
regarding export
•Competition among different pharmaceutical industries
is increasing day by day. When a pharmaceutical
company launches new medicine, existing companies are
indirectly enforced to produce the same type of
medicines
Rivalry among
existing firms
•In Bangladeshi pharmaceutical industry, there are many
large companies operating their business successfully. As
a result any new entrants will face tremendous
competition with these renowned companies.
Threat of new
entrants
•In pharmaceutical industries, the consumers have little
bargaining power.
Bargaining
power of buyers
Problems of Pharmaceutical Industries
Future Prospects of Pharmaceutical Industries
Pharmaceutical market
growth potential
•The growth of
pharmaceutical
industries of Bangladesh
is remarkable and there
are a lot of potentials.
New horizons for
pharmaceutical
industries
•Active pharmaceutical
ingredients (API) are the
principal constituents for
medicines. Though late,
government has taken
initiatives to build API
park for synthesizing
pharmaceutical raw
materials in Bangladesh.
Sufficient manpower
•Pharmaceutical sector is
the largest white-collar
demanding employment
sector of the country. 12
public and 22 private
universities are currently
offering Bachelor of
Pharmacy (B. Pharm.)
and Master of Pharmacy
(M. Pharm.) programs.
Customer Choices
• By increasing
quality, more
customers as well
as market share
can be absorbed.
By producing rare
drugs at home, the
country can save its
foreign exchange.
Foreign Competition
• For the
advancement use
of technology by
competitor,
Pharmaceuticals
industries will
become more
efficient in
producing medicine
which may save our
lives.
Marketing Policy
• Marketing system
is improving in this
sector and proper
marketing may
help a firm to
achieve the aim.
Future Prospects of Pharmaceutical Industries
1176
2043
2349
2701
3104
3573
4108
4705
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2014 2015 2016 2017 2018 2019 2020 2021
Growth Prospect of Pharma. Industry in Bangladesh
according by years (In $ millions )
Recommendation & Conclusion
Bangladeshi drug industry to manufacture
drugs is well established. Many pharmaceutical
companies are trying their best to contribute
in the economy. To do so they are trying to
utilize the current resource.
Bangladeshi pharmaceutical companies need
to expand their business globally. It will help
this country to be a develop country. It will
help this country to be a develop country.
THANK YOU !
Have a Nice
Day
Prepared By
Name
• Nafees Mahmud Khan
• Priyam Barua
• Sujoy Barua
• Rakesh Muhuri
• Preetam Barua
ID Number
• 140301-01-07397
• 140301-01-07448
• 140301-01-07267
• 140301-01-07425
• 140301-01-07449

International Financial Management Presentation

  • 1.
    Overall Impact ofPharmaceutical Industries in Economic Development of Bangladesh Welcome To The Project
  • 2.
    Overview of PharmaceuticalIndustries The pharmaceutical industry in Bangladesh is one of the most developed technology sectors within Bangladesh. This sector provides 97% of the total medicinal requirement of the local market. Bangladeshi pharmaceutical companies exports are increasing over the time and Bangladesh export pharmaceutical products to 105 countries. Bangladesh pharmaceutical export will cross $ 1 billion landmark within 2018.
  • 3.
    Top Ten PharmaceuticalIndustries at a glance Depending on the Annual Performance through the year 2017-18 Square Pharmaceuticals Ltd. Incepta Pharmaceuticals Ltd. Beximco Pharmaceuticals Ltd. Renata Limited Opsonin Pharma Limited Eskayef Bangladesh Ltd. ACI Limited Aristopharma Ltd. Healthcare Pharmaceuticals Limited ACME Laboratories Ltd.
  • 4.
    History of PharmaceuticalIndustries  The pharmaceutical sector is one of the thrust sectors in Bangladesh. Before Liberation, there was hardly any pharmaceutical enterprise in Bangladesh  Right after liberation war three fourth of the pharmaceutical industries was dominated by multinational companies.  The National Drug Policy (NDP) in 1982 and 2005 has major impact in the development and growth of the Bangladesh pharmaceutical industry.  Today, BAPI (Bangladesh Aushad Shilpa Samity in Bengali) is a very strong organization having as many as 144 companies as its members.
  • 5.
    Management of PharmaceuticalIndustries Management of Pharmaceutical Industries Human Resources Like other industries, pharmaceutical industry also believes that the human resources are most valuable asset for the organization. Training and Development Training refers to instruction provided for a current job & Development, on the other hand, has a broader scope.
  • 6.
    Principles of PharmaceuticalIndustries Mission •To produce and provide quality & innovative healthcare relief for people. •Maintain stringently ethical standard in business operation. OBJECTIVE •To conduct transparent business operation. •To attain the mission reflected by their vision. TARGET •To maintain customer trust and satisfaction . •To overcome local and international compliance of 46 LDCs (Least Developing Country) barrier.
  • 7.
    Principles of PharmaceuticalIndustries STRENGTH • The commitment of both management and workers • To deliver value to the clients, customers, consumers and well- wishers. GOAL • Inspired by a single goal for your health • To shape the dreams with creativity ENVIRONMENT • All necessary precautions will be taken to reduce the environmental impact • The company already got the environmental clearance.
  • 8.
  • 9.
    Impact of PharmaceuticalIndustries on Balance of Trade  Import: Importing is acquiring or purchasing the goods or products which have been made in another country. Bangladesh is importing the medicinal products from different countries, especially from India.  Two categories of raw materials used and imported 1. Active ingredients/basic materials and 2. Excipients.
  • 10.
    Year Imported (InUS Million $) Raw Material Packaging Material Finished Goods 2011 125.49 14.31 45.42 2012 136.92 15.61 35.41 2013 91.94 8.06 31.66 2014 105.93 9.67 39.92 2015 99.03 9.39 39.31
  • 11.
    Year Total Medicine Consumption (in MillionUS $) Imported Amount (in million US $) Local Medicine (in million US $) 2011 498.5 23.43 475.07 2012 512.6 28.27 483.79 2013 536.42 34.8 501.62 2014 552.58 33.15 519.43 2015 567.3 35.78 531.52
  • 12.
    0 100 200 300 400 500 600 2011 2012 20132014 2015 Amount(inmillionUS$) Year Yearly Consume Cost of Medicine and Imported Cost Total Medicine Consumption (in Million US $) Imported Amount (in million US $) Local Medicine (in million US $) From the above figure, it can be easily found that the maximum demand of medicine is met by the product produced by our locally established organization (locally owned and multinational).
  • 13.
    • Exporting  Exportsare goods and services produced by a firm in one country and then sent to another country. Export of pharmaceutical products of Bangladesh is still in infancy. But the rate of establishment of pharmaceuticals industries in private sector is increasing and they have already entered the export market with their finished products. • Export Policy of Bangladesh:  Encouraging labor-intensive  Ensuring availability of raw materials  Improving the quality of products  Initiating new strategies for the expansion of the markets
  • 14.
    Year Exports (US$ million) Share of total exports (%) 2010-11 27.5 0.3 2011-12 28.2 0.2 2012-13 43 0.3 2013-14 46 0.3 2014-15 41 0.3 Medicine Exporting Scenario of Bangladesh
  • 15.
    From the abovefigure, it can be concluded that the trend of export is upward. According to the drug administration; Bangladesh could not export the expected amount of pharmaceuticals products in the year 2015 due to some political problems. Drug administration hopes that the trend will continue in future. 2010-11 2011-12 2012-13 2013-14 2014-15 Exports (US$ million) 27.5 28.2 43 46 41 Share of total exports (%) 0.3 0.2 0.3 0.3 0.3 0 5 10 15 20 25 30 35 40 45 50 Medicine Exporting Scenario of Bangladesh
  • 16.
    Year Export Amount( US$ Million) Import Amount( US $ Million) Account valued by Export & Import Situation 2010-11 27.5 23.43 4.07 Surplus 2011-12 28.2 28.27 (0.07) Deficit 2012-13 43 34.8 8.2 Surplus 2013-14 46 33.15 12.85 Surplus 2014-15 41 35.78 5.22 Surplus Impact of Pharmaceuticals Industries on Balance of Trade (BOT)
  • 17.
    0 5 10 15 20 25 30 35 40 45 50 2010-11 2011-12 2012-132013-14 Impact of Pharmaceuticals Industries on Balance of Trade (BOT) Export Amount( US $ Million) Import Amount( US $ Million) As we notice the graph we can clearly assume that, the export of pharmaceutical products is always greater than importing from other countries. Which indicates a development growth of economy of the country.
  • 18.
    Problems of PharmaceuticalIndustries •Due to lack of well equipped drug testing laboratory Drug Administration cannot monitor the quality of drugs manufactured by different pharmaceutical companies in Bangladesh. Lack of modern drug testing laboratory •Pharmaceutical industries are now in high-end development trend that is being carried out by leading companies. Increasingly, many companies are competing with new pharmaceutical industries. Marketing strategy •Due to lack of adequate manpower and effective training programs they can’t execute their duties properly. Problems regarding export
  • 19.
    •Competition among differentpharmaceutical industries is increasing day by day. When a pharmaceutical company launches new medicine, existing companies are indirectly enforced to produce the same type of medicines Rivalry among existing firms •In Bangladeshi pharmaceutical industry, there are many large companies operating their business successfully. As a result any new entrants will face tremendous competition with these renowned companies. Threat of new entrants •In pharmaceutical industries, the consumers have little bargaining power. Bargaining power of buyers Problems of Pharmaceutical Industries
  • 20.
    Future Prospects ofPharmaceutical Industries Pharmaceutical market growth potential •The growth of pharmaceutical industries of Bangladesh is remarkable and there are a lot of potentials. New horizons for pharmaceutical industries •Active pharmaceutical ingredients (API) are the principal constituents for medicines. Though late, government has taken initiatives to build API park for synthesizing pharmaceutical raw materials in Bangladesh. Sufficient manpower •Pharmaceutical sector is the largest white-collar demanding employment sector of the country. 12 public and 22 private universities are currently offering Bachelor of Pharmacy (B. Pharm.) and Master of Pharmacy (M. Pharm.) programs.
  • 21.
    Customer Choices • Byincreasing quality, more customers as well as market share can be absorbed. By producing rare drugs at home, the country can save its foreign exchange. Foreign Competition • For the advancement use of technology by competitor, Pharmaceuticals industries will become more efficient in producing medicine which may save our lives. Marketing Policy • Marketing system is improving in this sector and proper marketing may help a firm to achieve the aim. Future Prospects of Pharmaceutical Industries
  • 22.
    1176 2043 2349 2701 3104 3573 4108 4705 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 2014 2015 20162017 2018 2019 2020 2021 Growth Prospect of Pharma. Industry in Bangladesh according by years (In $ millions )
  • 23.
    Recommendation & Conclusion Bangladeshidrug industry to manufacture drugs is well established. Many pharmaceutical companies are trying their best to contribute in the economy. To do so they are trying to utilize the current resource. Bangladeshi pharmaceutical companies need to expand their business globally. It will help this country to be a develop country. It will help this country to be a develop country.
  • 24.
    THANK YOU ! Havea Nice Day
  • 25.
    Prepared By Name • NafeesMahmud Khan • Priyam Barua • Sujoy Barua • Rakesh Muhuri • Preetam Barua ID Number • 140301-01-07397 • 140301-01-07448 • 140301-01-07267 • 140301-01-07425 • 140301-01-07449