Why Is There A Bright Future For Bangladeshi Pharmaceuticals And By What Means Will This Be Achieved?
Pharmaceutical sector in Bangladesh is a very promising sector in recent age. Actually the Pharmaceutical sector In Bangladesh is one of the most developed technical sectors .This sector is contributing a lots in the economy of the country .Besides meeting of local needs of medicine the pharmaceutical companies are now exporting to foreign countries in the world. The government has facilitate growth very much by giving support and implementing rules and regulations. The new instruments , the knowledge and innovative ideas of the professionals has brought this sector to the top . Due to latest improvement of the pharmaceutical sector it is exporting pharmaceuticals to foreign market as well as European market. The pharmaceuticals sector is also meeting 97% of the total medicine needs of the home market. Now a days the leading pharmaceutical companies are increasing their commerce with the aspire to expand export market. The new technological development of some pharmaceuticals companies in Bangladesh has opened a new hope to compete globally.
Statement Of The Setback
This study will be done to evaluate and analyze the present condition of pharmaceuticals business in Bangladesh as well as in international market. By exporting the pharmaceuticals what extent actually achieved . What is the recent status of pharmaceutical markets in local market as well as global market,the quality of products ,the regulatory affairs ,the support of government and the firms technological development to support the challange.
2. Literature Review
The Pharmaceutical Sector In Bangladesh
There are 237 registered companies in Bangladesh. That includes different expert global companies, home big companies with international links and local other small companies. But among 237 registered companies, only 150 are in good condition. The top 10 companies are capturing 70% of the local market and only two companies, Beximco and Square covers 25 % of the total market.
Bangladesh now exporting a wide range of medicine (therapeutic class and dosage forms) to 71 countries in the world. The Drug Control Ordinance of 1982 has placed the countries pharmaceutical business in a good pace. That ordinance has promoted manufacturing of local pharmaceutical company as well as helps the local companies to grow locally .And the result now observing that the local market promoted self-reliance in its pharmaceutical sector.Brfore that the local manufacturing companies supplied only 20 per cent of the total medicine requirement .The rest quantity 80% was supplied by the multinational foreign companies.The real picture now is that Local exports have risen from USD 0.04 million in 1985 to USD 27.54 million in 2006 (Export Promotion Bureau).But now 82% local needs are supplied by local companies and , MNCs supply 13 % of the market and 5 % of the drugs are imported . Square Pharmaceuticals is the top most firm for long time, the rest top companies are Beximco, Incepta, ACME and Eskayef .Other firms in the top ten bracket include Aristopharma, General, Healthcare Pharma, Novartis and Drug International .
The Innovation In The Local Pharmaceutical Sector
Pharmaceutical companies in Bangladesh are occupied in formulation of Active Pharmaceutical Ingredients involving manufacturing only. Though the R&D facilities are now incorporated in most of the pharmaceuticals companies but still they are busy with developing the new formulations but not the new generic .The progress in the reverse engineering of active pharmaceutical ingredients is not much.
Bangladesh now manufacturing 450 generic drugs, in 5,300 registered brands having 8,300 various appearance of dosage forms. Now the number of total registered company is 237 (including 5 multinationals) in the sector. The range of products contain antiulcerants, flouroquinolones, antirheumatic non-steroid drugs, non-narcotic analgesics, antihistamines, and oral antidiabetic drugs. Many firms are now producing rugs of anti-cancer, anti retroviral drugs for the treatment of HIV/AIDS and anti Bird Flu drugs.
Exporting Countries :
Pharmaceuticals sector in Bangladesh is targeting to set up it as a source for low-priced and reasonable medicines. In recent years, local manufacturer have tried to boost sales of pharmaceuticals to both emerging markets and developed countries, such as Australia and the UK. Bangladesh has got the chance to export products to least developed countries as well as all other countries as the requirement of those countries. Not only in the least developed countries the local manufacturing firms exporting medicines in other countries like UK as a supplier of the local company in the UK. There are some firms which has got the UK MHRA certificate that helps them to export medicines in the UK as well as in the EU market.At present Bangladesh exports formulated medicines about 71 countries in the world. Some of the countries name mention below:
Afghanistan, Austria, Belize, Belgium, Bhutan, Botswana, Brazil, Cambodia, Canada, Colombia, Chili, Curacao, Djibouti, Denmark, Ecuador, Ethiopia, France, Fiji, Georgia, Germany, Ghana, Gambia, Guatemala, Hong Kong, Macao Honduras, Hungary, India, Indonesia, Iran, Jordan, Japan, Kenya, Korea (South), Kinbati, Lebanon, Malaysia, Mexico, Mozambique, Myanmar, Nepal, Netherlands, New Zealand, Norway, Russia, Nicaragua, Pakistan, Papua New, Guinea, Philippines, Singapore, Slovenia, Somalia, South Africa, Spain, Sri Lanka, Sudan, Sweden, Syria, Solomon Island, Taiwan, Tanzania, Thailand, Togo, UAE, Ukraine, U K, USA, Venezuela, Vietnam, Yemen, Zimbabwe etc.
Pharma Sector In Bangladesh And TRIPS
Pharmaceutical sector is strongly patent demanding. All the big firms patents their product,
process and formulation so that they can do business with their protect for long time .There is an agreement which ensures Intellectual property rights of pharmaceutical products. It is known as Trade Related Aspects of Intellectual Property Rights ( TRIPS). It is based on the R&D work of firms to innovate new formulation .
The TRIPS Agreement particularly consent that all developing countries that are members to the WTO pass national laws that are TRIPS compliant by 2005. For this many countries like India, which manufactures and exports generic copies of brand name products patented not in their country won’t be able to manufacture those medicines because of TRIPS patent rule. But the Least developed countries like Bangladesh has got a chance to implement the pharmaceutical patent necessities of the TRIPS Agreement till 2016 .
Bangladesh, although a least developed country has got this chance and they can export pharmaceutical products to the least developed countries as well as they can produce the Medicine in their country with the formulation developed or patented by other firms in worlds.
Recent growth Of Pharmaceuticals In Bangladesh
According to the report of Business Monitor International’s (BMI) In Bangladesh the medicine Sale in the month of April-June 2009 has improved by 21% contrast with the same period in 2008. Two main reason was behind this growth . Firstly, most of the local firms introduced new formulations and upgraded their sales and marketing performance and efficient manufacturing system. Among them The top drug producer was Opsonin Pharma, which posted a 51% profits increase, next Eskayef Bangaldesh (+42%) and Drug International (+39%). Health consciousness between the population has also had an control on sell growth.
BMI has introduced a 10-year predict for pharmaceutical sales . The main reason of remedy sales in Bangladesh are: The government has greatly involved in healthcare sector ; increased % of chronic disease in elevated income groups; and modernization of marketing practice by local drugmakers. Through to 2019, BMI is forecasting a CAGR of 12.06% for the country’s US$1bn pharmaceutical market.
Bangladesh has a flourishing pharmaceutical manufacturing sector. The government of Bangladesh is setting up to give various help to support local vaccine production. That will help the country’s Extended Immunisation Programme. That include the support of the Drug Testing Laboratory and an raise of professional in the Drug Administration and National Regulatory Authority. Bangladesh newly secured a licence from the World Health Organization (WHO) to manufacture vaccines locally. The government targeting that by manufacturing drugs at an global criterion, the state can anticipate to create privileged international demand for its locally produced medicines.
3 Research Design
Research Questions And Aim Of The Study
The main research question in this study is:“Why is there a bright future for Bangladeshi Pharmaceuticals and by what means will this be achieved.?” In supporting this question, the following sub-questions will be considered:
- What types of regulatory affairs usually needed to export medicine in abroad ?
- What are the documents necessary to send primarily to attract the foreign client?
- What are the standards of the products that are exported ?
- What is the condition of manufacturing plants and the availability of sufficient equipments for manufacturing and quality control?
- What are the benefits, perceived risks, disapproval, availability and existing laws and regulations and regulatory affairs ?
- What are the conditions of those pharmaceuticals supplying medicines in the local market and exporting medicines in the global market ?
- What types of support services are available for the entire process?
The major targets of the present study aims the following:
- To have a knowledge about the pharmaceutical sector in Bangladesh.
- To understand their local and global business of medicine.
- To find out what necessary manufacturing plant facilities are required to attract the buyer or foreigner and measures against those requirements.
- To understand what necessary certification required to export medicine in global market.
- To know the condition of process and quality control equipments exists can support to maintain quality.
As a whole, this research is dedecated to find out “ Is there any significant chance of pharmaceutical companies to compete globally ? ( in terms of quality, economic solvency, healthcare, legal aid so on).”
Proposed System Of Data Collection
The proposed study is an important one. Both primary and secondary data needs to be collected at the time of study.
Direct interview system will be adopted to collect the primary data about the research topic . Two types of interview schedules have been targetted, first set is for the managers of international marketing department of the selected pharmaceuticals companies and the second set for the plant managers and quality control managers. The asking sets for both targetted groups have some simlar questions to determine the condition of the pharmaceutical business in local and international market.
All systems of collecting data will supply quantitative data (numbers, statistics or financial) or qualitative data (usually words or text). Quantitative data may be presented in table or graphical presentation .Actually the meaning of Secondary data is with the aim of data which has been composed by other person for a dissimilar principle to yours. Secondary data will be collected from available literatures in form of books, journals, magazines, published materials, research articles and annual reports of the pharmaceuticals which will be studied.
4 Scope And Limitations Of The Study
Scope Of The Study
The study intended to cover the manufacturing, quality of product and export programs of pharmaceuticals of different pharmaceuticals company in Bangldesh. Basic target is that the sample study represents the situation of the whole pharmaceutical companies in local and global market.The findings may vary in defferent firms because of the various mission ,vission and policies maintained by the different companies.
Selection Of Respondents
Selections of respondents are two categories: International marketing department personnel of the different pharmaceutical companies and personnel from the plant. The summary table below shows the key respondents of the proposed research.
1. Aristopharma Ltd.
2. Beacon Pharmaceuticals Ltd.
3. Beximco Pharmaceuticals Ltd
4. Eskayef bangladesh Ltd
5. Healthcare Pharmaceuticals ltd.
6. IBN Sina pharmaceuticals Ltd.
7. Incepta Pharmaceuticals Limited
8. Popular Pharmaceuticals Limited
9. Square Pharmaceuticals Ltd. Bangladesh
10. The ACME Labroratories Ltd.
Limitations Of The Study
Initially it is hard to do the research directly i.e. discussing with the representatives, field work to manage required important data, and others. Moreover majority good aims are present in this study but it has also some information gaps. These are given below:
- Due to limitation of time and researches constraint, it may be impossible to manage and investigate all the companies of the proposed country in terms of information collection.
- Most of the target pharmaceuticals are in competition and correspondent are buy with regulatory affairs. So due to that proper answer might not come out of the questionnaire.
- Due to lack of sufficient fund several analysis is not summerised in my research program.
- As a non- govt. Organization and competition , they won’t be interested to share all the information.
- Published informations might not be available as it is necessary.
At last inefficiency and inexperience of the researcher would also be a limitation.
5 Timetable For The Dissertation
The supervisor will consult me about the time and program of the dissertation work.The success of the work requires study work as well as investigation. Moreover it is evident to study on the present literature and present supposition. I will need to summarise the questionnaire, justify the questionnaire, make the questionnaire a final one, resource collection from the ground, data dealing , arrangement and resources examination, summarising of the dissertation with revision and communication with the supervisor . So far as I know, However, I will make this in consultation with the person who is my dissertation supervisor.
Finally it is must to state that this is a proposal of my MBA dissertation .It depends on the supervisor’s consultation to finalize.
# Bumpas J.( 2007) “Private Sector Approaches to Improving Bangladesh Drug Quality.”
# Gehl Sampath P (2007) “Intellectual Property and Innovation in Least Developed
Countries: Pharmaceuticals, Agro- Processing and Textiles and RMG in Bangladesh.”
# Gehl Sampath P (2007) “ Innovation and Competitive Capacity in Bangladesh’s
Pharmaceutical Sector” working paper.
# Osman F A ( 2004) “ A Study of the Health Policy Process: Policy Making in Bangladesh”.
A H Development Publishing House.
# http//www.researchandmarkets.com/research/bf1f27/bangladesh_pharmac, retrived on 25.02.2010.
# Chowdhury, F., S. Gurinder, S. Raihanuddin, and S. Hasan Nasir. 2006. “A Strategy for
Establishing the API Park”. Interim Report. Bangladesh: Ministry of Industry.