The drivers behind market growth based on some health indicators are: Although a few local companies manufacture Active Pharmaceutical Ingredients (APIs), about 80 percent of the supply is imported. It is known as the fastest growing industry in the world. Local Production (97% of market, estimated), $U.S. This sector provides 97% of the total medicinal requirement of the local market. The pharmaceuticals industry of Bangladesh is one of the most important thrust sectors of Bangladesh, expected to bring billions of dollars worth investments and exports as the country grows. With an annual two-digit growth rate, the Bangladesh pharmaceutical industry is now heading towards selfâsufficiency in meeting local demand. 8,000 Cr market, which is growing at 25% rate. Work for establishing an API industry park is progressing, albeit slowly, at Gojaria in Munshiganj. At present, 257 licensed pharmaceutical companies are present in Bangladesh, among which, 150 are functional. Local manufacturers dominate the industry, enjoying about 90 percent market share while multinationals hold 10 percent. The Pharma Industry of Bangladesh is paying the second largest revenue to the Government’s exchequer. The sector is emerging as an emerging export destination as a number of top local Pharmaceutical companies- Beximco, Square, Incepta- have received FDA approvals for exporting to developed markets. Moreover, few companies are on the road to achieve US-FDA approval. Bangladeshi pharmaceutical companies focus primarily on branded generic final formulations, using both imported and domestically produced Active Pharmaceutical Ingredients (APIs). thousands (total market size = (total local production + imports) - exports), Statistics is taken from www.export.gov/article?id=Bangladesh-Pharmaceutical, For more information visit http://www.pharmajogot.com/bangladesh-association-of-pharmaceutical-industries-bapi/, Hamid Suleymanov 56-58, Yakkasaray district, Tashkent, 100070, © 2016 - 2021 Embassy of the People's Republic of Bangladesh in Tashkent. The industry also exports medicines to global markets, including Europe. Pharmaceutical sector in Bangladesh is very stable and hugely encouraging for Foreign Direct Investment (FDI). It adopted The Drug Act 1940 in 1974, originally adopted by the Indian government in 1940, and later by the Pakistani government in 1957. in the essential drug list. Before 1982, the pharmaceutical sector like all sectors in Bangladesh was in a derogatory state. Bangladeshi manufacturers meet 97% of national demand for pharmaceutical ⦠Bangladesh pharmaceutical industry produces world class products and exports worldwide. Financial statement analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Biotech pioneers of the Bangladesh Pharmaceutical industry are considered as a valuable tool for the overall improvement and efficacy of the market. It is technologically one of the most developed manufacturing industries and currently contributes about one percent to total GDP with great potential for expansion. Increased education levels, enhanced awareness of healthcare, growing per capita incomes, the emergence of private healthcare services and the government’s expanding public expenditures in this sector continue to stimulate a rise in demand. This sector provides 97% of the total medicinal requirement of the local market. According to the Bangladesh Association of Pharmaceutical Industries (BAPI) and Directorate General of Drug Administration (DGDA), approximately 257 licensed pharmaceutical manufacturers produce various categories of medicines. As a result, medicine prices have remained within reach of the mass population. Bangladesh also produces high-tech medicines such as anticancer treatments, hormonal products, enzymes and coenzymes on a limited scale, but it is currently only able to meet four percent of local requirements. Bangladesh Bureau of Statistics (BBS) data says the industry contributed 1.85% of the GDP in FY17. Pharmaceuticals sector contributed 1.85% of the GDP in 2016-17 (Source: BBS). These hospitals have become popular due to their high-quality service. At present, 257 licensed pharmaceutical companies are present in Bangladesh, among which, 150 are functional. Regarding the success of local pharmaceutical firms, industry insiders said the sector is largely protected from the threat of foreign competitors, as there is a restriction on the import of drugs that are similar to locally manufactured variants. Biotech pioneers of the Bangladesh Pharmaceutical industry are considered as a valuable tool for the overall improvement and efficacy of the market. The income base of the population has been growing over the last decade. On or before 1982 ordinance, 75% of the market was dominated by the MNCs and the rest share was with the other 133 local companies. Considering Bangladesh’s export potential, government has been supporting the sector through policy support and incentives like tax holidays, priority in getting lands and allocation of dedicated economic zones. Multinational and large national companies generally follow current good manufacturing practices (cGMP) including rigorous quality control of their products. After liberation, Bangladesh pharma industry was largely dominated by the import dependent MNCs. The TRIPs agreement is turning Bangladesh into a hub for affordable and high-quality generic medicines and contract manufacturing, with exports to potentially more than 85 countries across the world. DATABD.CO is a one-stop source for business data in Bangladesh. They have been a major factor contributing to increased healthcare expenditure and have substituted for regional healthcare travel (although treatment in Malaysia and Singapore remains popular with some wealthy Bangladeshis even traveling to the United States for specialized services). Since then BAPI playing a pivotal role in shaping up the industry. The platform is aimed at facilitating access to industry datasets in meaningful formats. About us | Contact us | Privacy Policy & Terms of Use. Though its major activities include upholding interests of the pharmaceutical manufacturers of Bangladesh to the relevant forums, in last few years BAPI also organized various health awareness programs, campaigns, against spurious drugs, exports potentials & problems in Bangladesh. The pharmaceutical market of Bangladesh is expected to surpass $6 billion by 2025 with an absolute growth of 114 per cent from its 2019 levels, ⦠Two organizations regulate drugs and pharmacies in Bangladesh. The industry is highly concentrated as the top 20 companies generate 85 percent of the revenue. It remains likely that import restrictions will stay in place, and local companies will continue to dominate the pharmaceutical market. The pharmaceutical industry in Bangladesh is one of the most developed technology sectors within Bangladesh. Biotech pioneers of the Bangladesh Pharmaceutical industry are considered as a valuable tool for the overall improvement and efficacy of the market. Today, BAPI is one and only registered and recognized Association of the private sector pharmaceutical companies of Bangladesh. Overview Pharmaceuticals sector contributed 1.85% of the GDP in 2016-17 (Source: BBS). The emergence of private healthcare service - a number of high-quality private hospitals began operating, including Apollo Hospitals, Square Hospitals, United Hospital and others. About 85 percent of the drugs sold in Bangladesh are generic and 15 percent are patented drugs. Manufacturers produce the most Worldâs top quality pharmaceutical companies in Bangladesh. Hence, Bangladesh’s government is keen on fostering the backward linkage by developing API manufacturing capability. Bangladeshâs pharmaceutical industry is unique among least developed countries (LDCs). Copyright © 2018 - 2021 LightCastle Partners Ltd. Don't miss the next market & industry insight. Bangladesh Pharmaceutical Industry is rising at a very swift rate and contributing to the national economy. Industry people said the local packaging industry is growing at a rate of 10 percent a year. Bangladesh Association of Pharmaceutical Industries is meeting 97 % of total demand of pharmaceutical products. It is the second largest contributor to the countryâs economy. The pharmaceutical market trend is shifting toward unconventional drugs where there is greater opportunity for foreign investment. Bangladesh exported pharmaceutical products to 105 countries. The pharmaceutical industry is one of the most dynamic and powerful sectors in Bangladesh. Some of these companies are also emerging as competitors to Indian firms in certain areas. Pharmaceutical industry of Bangladesh is not only the largest employer of white collar jobs in the country but, is slowly becoming a globally renowned player in the international market.Bangladesh has already crossed the BDT 6 billion mark in terms of foreign exchange earnings from drug exports in the FY2015-16. Out of these 450 generics, 117 are in the controlled category i.e. Total domestic healthcare expenditures are currently approximately three percent of GDP, offering substantial opportunity for domestic pharmaceutical sales in addition to exports. Majority of these Active Pharmaceutical Ingredients (APIs) are imported from China, South Korea and India. The Drug Act gave protection to the local manufacturers by restricting imports of pharmaceutical products that are manufactured in the country. Bangladesh Association of Pharmaceutical Industries is meeting 97 % of total demand of pharmaceutical products. Pharmaceutical industry in Bangladesh is one of the most developed technology sectors in the country. Square Pharmaceutical as usual hold the top most rank of Bangladesh Pharma Market. Total domestic healthcare expenditures are currently approximately three percent of GDP, offering substantial opportunity for domestic pharmaceutical sales in addition to exports. Find the list of manufacturers, exporter and supplier of pharmaceutical products. Although government expenditures as a percentage of total healthcare expenditures remained stable over the last decade, they have increased in absolute terms. Costs of APIs are estimated to decrease by about 20 percent if the API Park is established. After NDP formulation and the Drug Control Ordinance, there was a dramatic change of reverse. Besides catering to local demand, Bangladesh is also exporting its formulations to 62 countries of the world (mainly Asia, Africa and East Europe) and demand for export is increasing rapidly. Increased education levels, enhanced awareness of healthcare, growing per capita incomes, the emergence of private healthcare services and the government’s expanding public expenditures in this sector continue to stimulate a rise in demand. Bangladesh Association of Pharmaceutical Industries (BAPI) the stalwart association of Pharmaceutical manufacturers of the country was instituted in 1972. Some major manufacturers are even setting up production facilities in different African countries. A total of 42 industries will be set up in the park, which will hold the potential to significantly boost the pharmaceutical sector in the country and create employment for more than 35,000 people. Manufacturers produce insulin, hormones, and cancer drugs. Manufacturers produce insulin, hormones, and cancer drugs. 1. Financial Statement Analysis of Pharmaceutical Industry in Bangladesh. There are about 450 generics registered in Bangladesh. The industry also exports medicines to global markets, including Europe. This industry is the second largest contributor to national exchequer. 1.1 Background. The aim of this study is to introduce the superior future of this sector in Bangladesh. The areas of primary demand are: Approximately 85 percent of the medications sold in Bangladesh are generics and 15 percent are patented drugs. The discussion will, however, begin with a brief overview of the global pharmaceutical industry. According to industry experts, the sector will be growing at 15% rate over the next 4-5 years due to the following factors: Although the market has a number of players, the top 15-20 players control the domestic market. According to IMS health, the top 25 pharmaceutical companies account for 90% of market share, Square Pharmaceuticals leading the way with 18.06 % market share. Industry Analysis of Pharmaceutical Industry in Bangladesh In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which is contributing in the country's economy. The rules and regulations of the Drug Act forms the foundation of the current industry. Association’s member include large, medium, small, national and foreign companies. The industry meets 98% of the demand for medication in the country and can be considered to be self-sufficient. Follow us on your favorite social media network. Bangladeshâs Pharmaceutical Industry in is a sector of the most challenging developed and golden mining technology. Bangladeshi pharmaceutical companies are investing heavily in upgrading manufacturing plants and obtaining certifications from the United States, Australia, Canada and Europe. Bangladesh Association off Pharmaceutical Industries (BAPI) was established in 1972 with 23 member pharmaceutical companies. The pharmaceutical industry in Bangladesh is one of the most developed technology sectors within Bangladesh. INTRODUCTION. As the country shifts to high-value manufactured products from low-value products like RMG, the future of this industry is under intense scrutiny. The local companies usually run the relatively easier final chemical synthesis stage with API intermediaries, instead of the complete chemical synthesis. Manufacture of pharmaceuticals is now one of the largest capital-intensive white-collar industries in the country, which has grown tremendously over the past few The Global Pharmaceutical Industry According to IMS Health (2010), the global pharmaceutical industry ⦠According to recently published Bangladesh Pharmaceutical Index, 3Q'2011, Bangladesh has a Tk. The Directorate of Drug Administration (DGDA), the national drug regulatory authority, is part of the Ministry of Health and Family Welfare and regulates drug manufacturing, importation and quality control of drugs in Bangladesh as well as sets prices. Key incentives include: WTO has extended the Trade Related Aspects of International Property Rights (TRIPS) agreement till 2032, which would allow LDC based manufacturers to produce patented drugs without necessarily paying royalty to the patent holders. The local companies usually run the relatively easier final chemical synthesis stage with API intermediaries, instead of the complete chemical synthesis. According to IMS Health, annual pharmaceutical sales in the local market may reach BDT 160 billion within 2018. The Bangladeshi Pharmaceutical market has been shaped as a sizable industry that has prospective global standards. The pharmaceutical industry is fast becoming self-sufficient in packaging and meets more than 90 percent of the need, which was previously import-dependent. Health expenditure per capita doubled during that same period, indicating people’s willingness to spend more on health as their disposable incomes increase. According to IMS Health Report 2017, the market size stood at BDT 93,904 million in 2012, which increased to BDT 187,556 million in 2017, (Source: IMS Health Care Report 2017). The government has given support to the manufacturing industry for decades. Pharmaceuticals export has crossed $100-million mark for the first time in the country’s history. This offers significant opportunities for U.S. firms to partner with Bangladeshi companies to produce for domestic or international markets. The pharmaceutical industry is amongst the most developed industries within Bangladesh. 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