The pharmaceutical industry in Bangladesh has grown significantly since the 1950s and is now the second largest contributor to the country's economy. There are over 230 pharmaceutical companies in Bangladesh that produce around 97% of the drugs used domestically. The industry has grown at a fast pace, with the market size reaching 30 billion taka annually and exports now going to 79 different countries. However, to realize its full potential, the industry still needs more investment in research and development facilities as well as incentives for exporting active pharmaceutical ingredients.

1. PHARMACEUTICAL INDUSTRIES IN
BANGLADESH
Serial no- 25
Umme Salma ruhi
ID: 1221BPM00849

2. INTRODUCTION
 There are several sectors on which Bangladesh
can be proud of and undoubtedly the
pharmaceutical sector is one of these sectors,
rather it is the sector, which is the second-largest
contributor to the government exchequer. There are
about 231 companies in this sector and the
approximate total market size is about Taka 30,000
million per year of which about 97% of the total
requirement of medicines is created by the local
companies and the rest 3% is imported. The
imported drugs mainly comprise of the cancer
drugs, vaccines for viral diseases, hormones etc.

3. HISTORY OF PHARMACEUTICAL INDUSTRY IN
BANGLADESH
 The industry was incepted in 1950.
 After libaration the market was dominated by
MNC’s and dependent on imports.
 In 1982 “National Drug Policy” and “Drug Control
Act” was introduced.
 In 1982 there were 166 local firms.
 Since then the dominition of local firm started.

4. INDUSTRY OVERVIEW
 Inception (around): 1950
 No of companies: 231
 Market size: 76.5 Billion BDT
 Market growth: 24.30%
 Position: 2nd (after garments) in industry sector
 Demand covers: 97% of domestic market
 No of medicine brands: 5300
 Market share: Domestic market 80% and MNC 20%
 Export: in 79 countries

5. PHARMACEUTICAL COMPANIES IN
BANGLADESH
serial Name of the companies Establishment
dates
1 Square Pharmaceuticals Ltd. 1958
2 Incepta Pharmaceuticals Ltd. 1999
3 Beximco Pharmaceuticals Ltd. 1976
4 Opsonis Pharma Limited 1956
5 Renata Limited 1974
6 Eskayef Bangladesh Ltd. 1979
7 Aristopharma Ltd. 1986
8 ACI Limited 1968
9 Healthcare Pharmaceuticals Limited 1988
10 ACME Laboratories Ltd. 1954

6. CONTINUED...
Serial no Name of the companies Establishment
date
11 General Pharma 1984
12 Sanofi Bangladesh
13 Radiant Pharmaceuticals Ltd. 2004
14 Drug International Ltd. 1974
15 Popular Pharmaceuticals Ltd. 2002
16 Novo Nordisk Pharma (Private) Ltd. 1989
17 Unimed Unihealth MFG. Ltd. 1972
18 Novartis (Bangladesh) Ltd. 1973
19 GlaxoSmithKline Bangladesh Ltd.
20 Nuvista Pharma Limited 1964

7. MARKET SHARES OF COMPANIES

8. CONTRIBUTION ON ECONOMY
 Significant contribution on country’s economy by
using man power.
 Substantial development on pharmaceutical sector
enabled us to export our branded generics in the
international market domain.
 Healthy growth is encouraging pharmaceutial
manufacturers toward reasearch and development
for newer generics of quality drugs and affordable
prices.

9. CONTINUED...
 The creation of Active Pharmaceutical Industry park
(API Park) is one of the most significant part of the
pharmaceutical industry as a whole.
 Bangladesh pharmaceutical industry is growing as
a fast pace and and has a bright future indeed
according to Business Monitor International’s.

10. CONTRIBUTION ON GDP
 Pharmaceutical industry is the
core of health care sector of
Bangladesh. The demograph
published by the World Bank in
2014 clearly shows the real
scenario of expenditure on
health care sector around the
world. Without some extra
ordinary product like hormone,
vaccine and cancer drugs
Bangladesh does hot have to
spend more than the most of
the countries of the world
because of the availability of the
medicine.

11. PHARMA GROWTH
The sector employs 1,15,000 workers and between
2013 and 2014, the growth stood around 11.37%.
According to IMS Health, annual pharmaceutical
sales in the local market may reach BDT 160 billion
within 2018.

12. FUTURE FORECAST OF PHARMA INDUSTRY OF
BANGLADESH CONSIDERING 15% GROWTH
Bangladesh's pharmaceutical sector can grow at 15
percent for the next five years riding on the expanded
domestic market as well as new export frontiers,
according to a new research.

13. PHARMA EXPORTS
 The industry exports wide rang of pharmaceutical products
covering all major therapeutic classes and dosage form to
79 countries.
 Along with regular dosage forms like tablet, capsules,
syrup and suspensions, Bangladesh also exports
spatialized products like HFC inhalers, CFC inhalers, nasal
sprays, suppositories, injectables, IV infusions etc.

14. CONTINUED...
 In the international arena there is great competition
with USA & EU based giant multinationals, having
their own research brands.

15. PHARMA GROWTH RATIO IN PROFIT OF MAJOR
SECTORS
 The pharmaceutical sector was the best performer
on the Dhaka Stock Exchange with 33.1 percent
growth in net profit in the first nine months of 2013,
while the banking sector was the worst performer
plunging by 47.6 percent.

16. AREAS FOR TAKING IMMEDIATE
ACTION
 1)Investment in Facility and R&D: Bangladesh need to
immediately invest in bulk drug facilities and
sophisticated R&D centers. But the market is too small
to make this investment a feasible one. In order to make
this venture feasible, tax-free import of all machineries,
equipments as well as concessional interest rates in
taking loan from banks for investment in bulk drug
facilities and in R&D Projects are needed.
 2)API Industrial Park: The cost of Raw Materials
/APIs as well as Finished Formulations would have
become more competitive in the overseas markets, if
Bangladesh also had Incinerators and Effluent
Treatment Plants (ETP) in the public sector.

17. CONTINUED...
 3) Registration Requirement for Imported
Products:On the other hand registration requirement in
Bangladesh for imported products is extremely relaxed.
If immediate proper attention is not given, there is a
possibility that Bangladesh Pharmaceutical Market will
be flooded with substandard and spurious products from
the neighboring countries.
 4)incentives for export: The Bangladesh Association of
Pharmaceutical Industries (BAPI) feels that to become
competitive in the overseas markets, Bangladesh
Government should immediately introduce ‘20% Cash
Incentives’ for export of pharmaceutical finished
formulations and ‘30% Cash Incentives’ for export of
Raw Materials/APIs

18. CONTINUED...
 5) Independent Drug Testing Laboratory (DTL):There
are two DTL in Bangladesh which are always engaged
in testing numerous drugs that are being introduced by
about 200 pharmaceutical companies operating in the
domestic sector. More than that, these facilities are not
modern and sophisticated enough to carry out different
types of tests as required for export which are becoming
more & more stringent day by day. Considering
aforementioned scenario, the pharmaceutical
manufactures of Bangladesh have been requesting the
Government to provide a land for an independent,
modem and sophisticated DTL with the facility of Bio-
equivalency testing.

19. CONTINUED...
 6) Global presence: So far Bangladesh exported
its basic chemicals to many countries namely, Iran,
Hong Kong, South Korea, Malaysia, Taiwan,
Vietnam, Thailand & Nepal. After being successful
in exporting basic chemicals, few leading
companies also started registering & exporting their
finished formulations in Sixty Two countries

20. CONCLUSION
The overall industry seems attractive in terms of
growth rate, bergeinning power and revenue, but
considering the start up cost, rules and regulations, it
needs a second thought. Although there are
substitutes but most of the product is marketed by the
pharmaceutical company itself. Beside all these
things this is one of the sector to work for and stand
by the side of mankind.

21. For query: ruhirb@yahoo.com