Export potentiality of pharmaceutical goods in bangladesh

A report on:
Export Potentiality of Pharmaceutical goods
in Bangladesh

Submitted To:
Mohammed Sohail Mustafa
Course instructor
UIU SOBE
Submitted By:
Name ID
Mahbub Mayan 111 111 079
Saidur Rahman Shamrat 111 111 033
Md. Shahaid Jurain Alam 111 121 645
Proma Rahman 111 121 069
Submission Date: 26th
August, 2014

Letter of Transmittal
November 8, 2000
Mohammed Sohail Mustafa
United International University
Dhanmondi, Dhaka
Subject: Submission of report on “ export potentiality of Pharmaceutical goods in
Bangladesh”
Sir,
Here is the report on export potentiality of Pharmaceutical goods in Bangladesh that
you asked us to make for the course International Business. As you will see, there is a
high potentiality of exporting of pharmaceutical goods in Bangladesh.
We are thankful to all those persons who provided us important information and
gave us valuable advices. We would be happy if you read the report carefully and
We will be trying to answer all the questions that you have about the assignment.
We have tried our label best to complete this assignment meaningfully and
Correctly, as much as possible. We do believe that our tiresome effort will help
you to get ahead with this sort of venture. In this case it will be meaningful to us.
However, if you need any assistance in interpreting this assignment please contact
us without any kind of hesitation.
Thanking you.
Yours obediently,
Mahbub Mayan
On behalf of the group

Acknowledgment
The opportunity that Muhammed Sohail Mustafa Sir has given us was really help full
to get much informative. Therefore, we consider myself as a very lucky individuals as
we were provided with an opportunity to be a part of it. we am also grateful for
having a chance to explore so many knowledge for making this report.
Bearing in mind previous I am using this opportunity to express my deepest gratitude
and special thanks to the MD of [Company name] who in spite of being
extraordinarily busy with her/his duties, took time out to hear, guide and keep me on
the correct path and allowing me to carry out my project at their esteemed
organization and extending during the training.
I express my deepest thanks to [Name Surname], [Position in the Company] for taking
part in useful decision & giving necessary advices and guidance and arranged all
facilities to make life easier. I choose this moment to acknowledge his/her
contribution gratefully.
It is my radiant sentiment to place on record my best regards, deepest sense of
gratitude to Mr./Ms. [Name Surname], [Position in the Company], Mr./Ms. [Name
Surname], [Position in the Company], Mr./Ms. [Name Surname], [Position in the
Company] and Mr./Ms. [Name Surname], [Position in the Company] for their careful
and precious guidance which were extremely valuable for my study both theoretically
and practically.
I perceive as this opportunity as a big milestone in my career development. I will
strive to use gained skills and knowledge in the best possible way, and I will continue
to work on their improvement, in order to attain desired career objectives. Hope to
continue cooperation with all of you in the future,
Sincerely,
Name Surname

Table of Content
Table of Contents
1. Introduction ................................................................................................................. 8
2. Pharmaceutical Industry of Bangladesh.......................................................................... 3
i) History ...................................................................................................................... 4
ii) Local Market Overview.............................................................................................. 6
iii) Drug Quality of Bangladesh....................................................................................... 7
3. Multinational Pharmaceuticalsin Bangladesh............................................................... 10
4. Overseas Market......................................................................................................... 12
5. Post WTO Opportunities.............................................................................................. 12
I) Export..................................................................................................................... 13
II) Compulsory Licensing and Contract Manufacturing................................................... 14
III) Joint-Venture Investment Opportunities.................................................................. 14
6. AREAS FOR TAKING IMMEDIATE ACTION...................................................................... 16
I) Investment in Facility and R&D................................................................................. 16
II) API Industrial Park................................................................................................... 16
III) Registration Requirement for Imported Products..................................................... 17
IV) Independent Drug Testing Laboratory(DTL) ............................................................ 17
V) Incentivesfor Export............................................................................................... 18
7. GLOBAL PRESENNCE.................................................................................................... 18
8. EXPORT TREND OF PHARMACEUTICALS FROMBANGLADESH ........................................ 21
9. Human Resources....................................................................................................... 26
10. Trainingand Development......................................................................................... 26
11. Exporting.................................................................................................................. 27
12. Importing................................................................................................................. 31

13. Foreign Competitions................................................................................................ 31
14. Dumping................................................................................................................... 32
15. CustomerChoice....................................................................................................... 32
16. Researchand Development....................................................................................... 33
17. EXAMPLES OF A FEW LEADING PHARMACEUTICAL INDUSTRIES IN BANGLADESH.......... 35
i) Beximco Pharmaceuticals Ltd.................................................................................... 35
ii) Square Pharmaceuticals Ltd..................................................................................... 36
iii) The ACME Laboratories Ltd..................................................................................... 38
18. Drug Discovery and Drug Development...................................................................... 39
iii) Drug Distribution.................................................................................................... 40
19. PROBLEMS AND PROSPECTS...................................................................................... 43
Problemsof Marketing................................................................................................ 43
Prospectsof Marketing............................................................................................... 43
Problemsof Foreign Competition................................................................................. 43
Prospects of Foreign Competition ................................................................................ 44
Problemsof Export...................................................................................................... 44
Prospects of export..................................................................................................... 44
Problemsof Customer Choices..................................................................................... 45
Prospects of CustomerChoices.................................................................................... 45
Problemsof Power Development................................................................................. 45
20. CONCLUSIONS........................................................................................................... 46
RECOMMENDATIONS...................................................................................................... 46
REFERENCES................................................................................................................... 47

Executive Summary
i. The pharmaceutical industry is one of the most technologically advanced
sectors currently in existence in Bangladesh. It is the second largest industry which
earns foreign currency for Bangladesh after the RMG sector. Among all the LDC
countries Bangladesh is the one and only country having quality pharmaceutical
technology base with marketing potential and exporting in at least 80 countries. It has
grown in the last two decades at a considerable rate. The skills and knowledge of the
professionals and innovative ideas of the people involved in this industry are the key
factors for these developments. About 300 pharmaceutical companies are operating at
the moment. Only 3% of the drugs are imported, the remaining 97% come from local
companies. Positive developments in the pharmaceutical sector have enabled
Bangladesh to export medicine to global markets. By overcoming the underlying
obstacles this sector can develop more and can be an effective exporting sector of
Bangladesh. Like other industries, there is a crucial problem faced by the
pharmaceutical industries that is power generation problem. They are not getting
power according to their demand.
‘Red-Tapism’ of govt. offices hinders the development of power generation sector,
where the government is not taking effective actions. Corruption problem like this is
also getting worse day by day and affecting the international trade. Political problem
is another problem that Bangladesh is facing right now. Political unrest is hampering
the international trade of all the goods in Bangladesh. If the government succeeds in
stopping corruption and the political unrest, the Pharmaceutical industry may grow
higher than lots of international pharmaceutical giants.

1. 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 95% of the total requirement of medicines is created
by the local companies and the rest 5% is imported. The imported drugs mainly
comprise of the cancer drugs, vaccines for viral diseases, hormones etc.
In fact, the real growth of local pharmaceutical industries started after the “Drug
Control Act” was promulgated in 1982 in Bangladesh to restrict massive import of
drugs and to encourage local manufacturing of the same. A lot of multinational
companies (MNCs) became unhappy for this development.
In Bangladesh, pharmaceutical is now one of the fastest growing sectors. In 2004, the
total size of the pharmacy market of Bangladesh was estimated to be Tk. 28,416
Million. With an annual growth rate of about 10%, Bangladesh Pharmaceutical
Industry is now heading towards self-sufficiency in meeting the local demand.
Bangladesh pharmaceutical industry is the second highest contributor to the national
exchequer after garments, and it is the largest white-collar intensive employment
sector of the country.
There are about 450 generics registered in Bangladesh. Out of these 450 generics, 117
are in the controlled category i.e. in the essential drug list. The remaining 333
generics are in the decontrolled category, The total number of brands /items that are
registered in Bangladesh is currently estimated to be 5,300, while the total number of
dosage forms and strengths are 8,300.
One of the major positive impacts of Drug (Control) Ordinance-1982 is the rapid
development of local manufacturing capability. In recent years, the country has

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achieved large volume of parental products, by which the country becomes- self
sufficient; huge volume of these products are also exported to other countries.
The development of local manufacturing companies helped to reduce the dependence
on the import of raw materials of pharmaceutical products and finished
pharmaceutical products. Under the Drug (Control) Ordinance 1982, the Government
determines Maximum Retail Prices (MRP) of 117 essential drug chemical
substances. This price determination is only for the local producer companies and
still now the multinational organizations are determining their price by their own
way. For imported finished products, Government determines the fixed percentage
of markup, but the (governmental) drug administration could not fix up the MRP
in Bangladeshi market. It is interesting to note that, even with withdrawal of price
control from many products, prices have not shot up; healthy competition has been
keeping the prices within affordable levels.
Bangladesh pharmaceutical industry is mainly dominated by domestic manufacturers.
Of the total pharmaceutical market of Bangladesh, the local companies are enjoying a
market share reaching around 80%, while the MNCs are having a market share of
20%. Out of the top ten pharmaceutical companies in Bangladesh, eight are local
pharmaceutical companies, while only two are MNCs. The top two domestic
manufacturers, namely Square and Beximco Pharma are having a combined market
share of about 25% of the total pharmaceutical market of the country.
The Bangladesh Association of Pharmaceutical Industries – BAPI (Bangladesh
Aushad Shilpa Samity in Bengali), established in 1972 with just 33 members, has
been playing a very vital role for development of this sector. Today, BAPI is a very
strong organization having as many as 144 companies (as listed at Annexure-I) as its
members.
Infrastructure development and the deployment of trained manpower are now
perceived as two of the essential prerequisites for the implementation of national
pharmaceutical policies (Jayasuriya, 1991). Pharmaceuticals have greatly
improved health in developing countries, but many people in developing
countries do not obtain even inexpensive pharmaceuticals and little pharmaceutical

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R&D is oriented towards products needed by developing countries, such as a malaria
vaccine and access to existing products could be improved by facilitating differential
pricing (Kremer, 2002). It is suggested that under conditions of rapidly changing
demand (as found in pharmaceuticals), price-caps could be manipulated and using
simulations. The recent acquisition of the German pharmaceuticals and diagnostics
company Boehringer Mannheim by F Hoffmann - La Roche illustrates how such
huge business transactions meet with trade unions which are completely unprepared
(Zeller, 2000). The number of new drugs approved in the United States each year is
huge that is readily available, but it is known that no systematic analyses of the long-
term patterns of new drug approvals by firm have been reported in the
literature (DiMasi, 2000). The United States has a clear edge both in terms of
“output”, in other words, the number of new active ingredients for pharmaceuticals,
and in terms of “input”, that is, R&D spending of US$ 20 billion on drug
development in that country every year (Humer, 2005). ‘The pharmaceutical
industry arguably has the worst record of serious corporate crime of any industry,
international law evasion rather than outright law violation has been the biggest
problem in the industry. Consumer and professional activism and a variety of levels
of self- regulation in combination with state, regional, and international regulation are
all important to understanding how progress is possible.
2. PharmaceuticalIndustry of Bangladesh
The pharmaceutical industry in Bangladesh is one of the most developed hi-tech
sectors within the country's economy. In 2000, there were 210 licensed allopathic
drug-manufacturing units in the country, out of which only 173 were in active
production; others were either closed down on their own or suspended by the
licensing authority for drugs due to non-compliance to good manufacturing practices
or drug laws. Now about 300 pharmaceutical companies are operating at the moment.
The industry manufactured about 5,600 brands of medicines in different dosage
forms. There were, however, 1,495 wholesale drug license holders and about 37,700
retail drug license holders in Bangladesh.

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After the promulgation of Drug Control Ordinance - 1982, the development of this
sector was accelerated. The professional knowledge, thoughts and innovative ideas of
the pharmaceutical professionals working in this sector are the key factors for this
development. Due to recent development of this sector, the industry is exporting
medicines to global markets, including the European market. This sector is also
providing 97% of the total medicine requirement of the local market. Some of the
companies produce insulin, hormones, and anticancer drugs, which were not
previously produced in Bangladesh. Leading pharmaceutical companies are
expanding their business with the aim to expand into the export market. Recently, a
few new industries have been established with high tech equipment and professionals
to enhance the strength of this sector.
i) History
The pharmaceutical sector is one of the thrust sectors in Bangladesh. Before
Liberation, there was hardly any pharmaceutical enterprise in Bangladesh (then East
Pakistan). After several years of liberation, the government could not increase (in
relative terms) budgetary allocations for the improvement of health sector. At that
time, most of the people had little access to the essential lifesaving medicines. This
sector started to improve from 1980s. The pharmaceutical industry has grown in the
last two decades at a considerable rate.
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.
The need for NDP was very evident. Almost all the multinational companies were
producing simple and non-essential drugs in Bangladesh like vitamins mixture or
cough syrups. They used to import their raw materials from abroad at high prices.
There was a need for vast quantity of essential, useful and economic drugs in
Bangladesh. It was essential and important for Bangladesh to introduce a drug policy
for the betterment of national health by availing international standard medicine in
lower cost to Bangladeshi people. Precisely, multinational companies were prevented

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to reduce their unessential drugs production and discouraged to import raw material at
high process.
Key pointsof National Drug Policyof 1982:
rovide administrative and legislative support for ensuring quality of essential
drugs which are relevant to the national health need.
eliminate non-essential medicine from the market.
misuse and to ensure the proper utilization of the drugs.
ure GMP and qualified pharmacist in manufacturing companies.
As NDP 1982 implemented, most multinational companies sold their business to local
pharmaceutical. This fueled to the evolution of the local pharmaceutical sectors.
According to the Directorate General of Drug Administration (DGDA) website, the
value of the locally produced drug was 175 crore in 1981 that increased to 325 crore
by 1985.
Essential Drugs’ List: Under the Drug (Control) Ordinance 1982, the Government
determines Maximum Retail Prices (MRP) of 117 essential drug chemical substances.
This price determination is only for the local producer companies and still now the
multinational organizations are determining their price by their own way.
The Bangladesh Association of Pharmaceutical Industries – BAPI: BAPI,
(Bangladesh Aushad Shilpa Samity in Bengali), established in 1972 with just 33
members, has been playing a very vital role for development of this sector. Today,
BAPI is a very strong organization having as many as 144 companies as its members.
Drug Regulatory Authorities in Bangladesh
A regulatory agency is a public authority or government agency responsible for
exercising autonomous authority over some area of human activity in a regulatory or
supervisory capacity. An independent regulatory agency is a regulatory agency that is
independent from other branches or arms of the government. Two organizations

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regulate drugs and pharmacies in Bangladesh, one governmental and one semi-
government, which are:
The Directorate General of Drug Administration (DGDA): DGDA is the drug
regulatory authority of Bangladesh, which is under the Ministry of Health and Family
Welfare. DGDA regulates all activities related to import and export of raw materials,
packaging materials, production, sale, pricing, licensing, registration, etc. of all kinds
of medicine including those of Ayurvedic, Unani, and Herbal and Homoeopathic
systems.
The Pharmacy Council of Bangladesh (PCB): PCB was established under the
Pharmacy Ordinance in 1976 to control pharmacy practice in Bangladesh.
The Bangladesh Pharmaceutical Society is affiliated with international organizations
International Pharmaceutical Federation and Commonwealth Pharmaceutical
Association. The National Drug Policy (2005) states that the WHO’s current Good
Manufacturing Practices (GMP) should be strictly followed and that manufacturing
units will be regularly inspected by the DDA. Other key features of regulation are
restrictions on imported drugs; a ban on the production in Bangladesh of around 1,700
drugs which are considered non-essential or harmful; and strict price controls,
affecting some 117 principal medicines.
ii) Local Market Overview
The Bangladesh pharmaceutical marketplace is predominantly a branded generic
marketplace. Pharmaceutical firms in Bangladesh can either sell to the private sector
pharmacies, to the government and its public health care facilities, or to international
organizations operating in Bangladesh (e.g. UNICEF).
Bangladesh pharmaceutical industry is mainly dominated by domestic manufacturers.
Of the total pharmaceutical market of Bangladesh, the local companies are enjoying a
market share reaching around 97%, while the MNCs are having a poor market share.

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Out of the top ten pharmaceutical companies in Bangladesh, all are local
pharmaceutical companies. The top two domestic manufacturers, namely Square and
Incepta Pharma are having a combined market share of more than 30% of the total
pharmaceutical market of the country.
Bangladesh Association of Pharmaceutical Industries (BAPI) was instituted in 1972,
since then BAPI playing a pivotal role in shaping up the industry. Association's
member include large, medium, small, national and foreign companies who together
are responsible for manufacturing 97% of the country's pharmaceutical production.
iii) Drug Quality of Bangladesh
For generic pharmaceutical products, quality is defined as the generic drug having the
same active ingredients as the original formulation and being bioequivalent to the
brand name counterpart with respect to pharmacokinetic and pharmacodynamic
properties (equivalent absorption rates, elimination rates, and other in vivo effects).
By extension, therefore, generics are assumed to be identical to the original product in
dose, strength, route of administration, safety, efficacy and intended use.
While some Bangladeshi pharmaceutical products on the market are of world-class
standards, others are less so. Medical professionals and pharmacists interviewed
voiced strong opinions on the quality levels of different brands. Although further
comprehensive and systematic analysis is required to assess Bangladesh’s
pharmaceutical quality, some anecdotal reports exist of lower quality drugs.
The International Centre for Diarrhoeal Disease Research, Bangladesh (ICDDR, B)
tested the zinc content in 20 zinc-syrup formulations marketed in Bangladesh. The
samples were purchased from local pharmacies in Dhaka. Only two of the tested
products contained zinc concentrations within 5% of the stated content. The rest
contained zinc, just not enough. The problem could have originated from either poor
manufacturing or poor product handling in the distribution channel, because zinc
degrades if exposed to light.

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Of eleven drugs UNICEF sent for testing to a laboratory in Australia, two had
substandard results. When the manufacturers were informed, one company
immediately stopped production until it found the problem—a very good response.
The other company however, refused to address the problem, claiming that the test
was in error. UNICEF sent the drug for a second testing to a lab in Denmark where
the drug was also found substandard. The company still refused to address the issue.
Some Bangladeshi firms have invested in quality raw materials, manufacturing
processes and environment, and technical know-how. However, a “perverse
incentive” exists against upgrading due to the weak regulatory structure. Firms that
have invested minimally in quality continue to sell drugs alongside those that have
invested substantially. Because of weak regulations, the
consumer cannot determine quality differences and select for purchase the superior
product. As a result, firms that have invested in quality manufacturing and quality
processes are in a sense penalized.
Here are the names of the pharmaceutical companies of Bangladesh:
Aristopharma
-Aventis Bangladesh Ltd

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on of Novartis)
td

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3. Multinational Pharmaceuticals in Bangladesh
The multinational pharmaceutical companies are working in Bangladesh from a very
long time. Nowadays there are still some companies operating here. Here is a table
containing top five multinational pharmaceutical companies of Bangladesh.
Table: Top Five
MNCs Sl. No.
Name of The
Company
Market Size Market Share
(%)
Growth (%)
1 Novo Nordisk 2,083,257,490 2.05 -5.85
2 Sanofi Aventis 2,032,579,187 2.00 -6.38
3 Glaxosmithkline
(GSK)
1,694,068,206 1.67 4.43
4 Novartis 1,373,449,983 1.35 9.16
5 Roche 709,712,519 0.70 8.66
Novo Nordisk: Novo Nordisk manufactures and markets pharmaceutical products
and services and was created in 1989 through a merger of two Danish companies
dating back to the 1920s. It produces, in particular, diabetes care equipment and
medications. Novo Nordisk is also involved with haemostasis management, growth
hormone therapy and hormone replacement therapy. Company headquarters are in
Denmark, with production facilities in seven countries, and affiliates or offices in 76
countries. It employed approximately 29,000 people globally as of Q4 2009, and
marketed its products in 179 countries. It is the largest publicly traded company in the
Nordic countries by market capitalization. In January 2012, Novo Nordisk was named
as the most sustainable company in the world by the business magazine Corporate
Knights.
The company makes several drugs under various brand names. Some of them are
Levemir, NovoLog, Novolin R, NovoSeven, and Victoza. The Novo Nordisk logo

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since the year after the company’s foundation has been the Apis bull, one of the
sacred animals of ancient Egypt.
Sanofi: It is a French multinational pharmaceutical company headquartered in Paris,
France, the world's fourth-largest by prescription sales. Sanofi engages in the research
and development, manufacturing and marketing of pharmaceutical products for sale
principally in the prescription market, but the firm also develops
GlaxoSmithKline plc (GSK): GSK is a British multinational pharmaceutical,
biologics, vaccines and consumer healthcare company headquartered in Brentford,
London. It is the world's fourth-largest pharmaceutical company after Pfizer, Novartis
and Sanofi, measured by 2009 prescription drug sales. The company was established
in 2000 by the merger of Glaxo Wellcome plc (formed from the acquisition of
Wellcome plc by Glaxo plc) and SmithKline Beecham plc (formed from the merger
of Beecham plc and SmithKline Beckman Corporation, which in turn was formed by
combining the Smith Kline French and Beckman companies).
GSK has a portfolio of products for major disease areas such as asthma, cancer, virus
control, infections, mental health, diabetes and digestive conditions. It also has a large
consumer healthcare division that produces oral healthcare and nutritional products,
drinks and over-the-counter medicines, including Sensodyne, Boost and Horlicks.
Andrew Witty has been the chief executive officer since May 2008. over-the-counter
medication. The company covers 7 major therapeutic areas: cardiovascular, central
nervous system, diabetes, internal medicine, oncology, thrombosis and vaccines (it is
the world's largest producer of the latter through its subsidiary Sanofi Pasteur). Sanofi
is a full member of the European Federation of Pharmaceutical Industries and
Associations (EFPIA). The company was formed as Sanofi-Aventis in 2004 by the
merger of Aventis and Sanofi-Synthélabo. It changed its name to Sanofi in May 2011.
In January 2012, Sanofi announced that they will invest $125 million in Warp Drive
Bio to support their cancer research program.

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4. OverseasMarket
The history of pharmaceutical export from Bangladesh dates back to late 80′s. At that
point in time, only one or two pharmaceutical companies of Bangladesh took
proactive efforts to initiate export of pharmaceuticals from Bangladesh. Despite the
fact that there was no support or incentive from the Govt., these companies with their
own initiative started exporting finished formulations to some of the neighboring less
regulated overseas markets like Myanmar, Sri Lanka and Nepal.
After being successful in these less-regulated markets, in early 90′s few major
companies of this country also took initiative to explore some of the more-regulated
markets like Russia, Ukraine, Georgia and Singapore. Success in registering and
marketing these products in these countries was a major breakthrough for Bangladesh
pharmaceutical industries.
Today, Bangladesh pharmaceutical industry has successfully started exporting its
quality products to about 52 countries across four continents. Although volume wise
the amount may not appear to be huge, but most importantly it is growing at a very
fast pace. Today, Bangladesh is exporting a wide range of pharmaceutical products
covering all major therapeutic classes and dosage forms. Beside regular brands,
Bangladesh is also exporting high-tech specialized products like Inhalers,
Suppositories, Nasal Sprays, Injectables and Infusions. The product quality,
packaging and presentation of the products have been highly appreciated in all of the
countries of export destination.
5. Post WTO Opportunities
Specifically WTO members to provide copyright rights, covering content producers
including performers, producers of sound recordings and broadcasting organizations;
geographical indications, including appellations of origin; industrial designs;
integrated circuit layout-designs; patents; new plant varieties; trademarks; trade dress;
and undisclosed or confidential information. TRIPS also specifies enforcement
procedures, remedies, and dispute resolution procedures. Protection and enforcement
of all intellectual property rights shall meet the objectives to contribute to the
promotion of technological innovation and to the transfer and dissemination of

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technology, to the mutual advantage of producers and users of technological
knowledge and in a manner conducive to social and economic welfare, and to a
balance of rights and obligations.
According to the WTO’s TRIPS (Trade Related Aspects on Intellectual Property), all
signatory parties are bound to implement 20 year product patent protection for
pharmaceutical products into their domestic legislation. TRIPS is not a uniform law,
but a framework that sets minimum standards for intellectual property protection.
Countries must then design legislation to meet its requirements, but there is still
significant flexibility. Countries were given the following transition periods:
I) Export
From January 01, 2005 onwards, huge export opportunities have already been opened
for Bangladesh pharmaceutical sector. As a signatory of WTO/ TRIPs, countries like
China and India have already implemented ‘Patent Laws’ in their countries and hence,
these countries are no longer allowed to export patented drugs from their countries.
On the contrary, the situation is just reverse for Bangladesh. As a member of LDCs,
Bangladesh has already got the exemption from abiding by the patent laws until
January 01, 2016, which is going to open the door to ‘Enormous Export
Opportunities’ for the Pharmaceutical Sector of the country. Although, all the 49
LDCs have got this exemption, except Bangladesh all 48 LDCs are basically import
based in pharmaceuticals and will not be able to exploit this export opportunity.
Bangladesh with its strong manufacturing base in pharmaceuticals is the only country
that would really be able to capitalize this opportunity by exporting pharmaceuticals
to other LDCs.
Needless to mention that, Bangladesh can also ensure huge value addition by
pharmaceutical export since the export price is much higher than the local price. For
example, in Bangladesh the price of one fluconazole capsule is Tk. 8 whereas
fluconazole is exported to Pakistan at a price of Tk. 38. Similarly, the price of
paracetamol syrup in Bangladesh is Tk. 13 but it is exported to Russia at a price of
Tk. 100.

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II) Compulsory Licensing and Contract Manufacturing
For countries where pharmaceutical patent has come into-effect from January 01,
2005, compulsory licensing is neither a practical nor a feasible option to meet national
emergencies. In case of ‘National Emergencies’, it may take 2 to 3 years to get the
products through ‘Compulsory Licensing’ because the generic manufacturing
company, after getting the permission to manufacture patented products from Drug
Authority, have to go through all the processes (e.g. RM sourcing, development-RM
procurement, product development, stability studies, commercial RM procurement,
production etc.) to introduce the products.
In such situation, Bangladesh could be an ideal candidate having all the
manufacturing facilities and well developed formulation R&D that could be utilized
for immediate manufacturing of the patented life saving molecule using compulsory
licensing.
Bangladesh has all the infrastructure & facilities to be an ideal place for contract
manufacturing. It has state-of-the-art manufacturing facilities, highly educated &
skilled human resources, sophisticated & cutting edge quality control laboratories. It
can manufacture highest quality products conforming to all international standards
like British Pharmacopoeia (BP), United States Pharmacopoeia (USP), European
Pharmacopoeia (EP) and any other recognized standards.
Equipped with the most advanced technologies & following cGMP standards,
Bangladesh Pharmaceutical Industry can cater to any healthcare need of all
concerned. Some of the Pharmaceutical manufacturers of Bangladesh have made
multimillion dollar investments on new plant and facilities conforming to USFDA
standards. They have sufficient production capacity for contract manufacturing. Since
Bangladesh has abundant and cheap labor force, the cost of contract manufacturing
would be highly favourable compared to any other countries of the world.
III) Joint-Venture Investment Opportunities
Bangladesh has a very big market for Active Pharmaceutical Ingredients (APIs),
excipients and intermediates. Although it is self sufficient in formulation drugs
meeting 95% of country’s demand it still depends largely on imported bulk drugs.
Around 80% of Bangladesh’s total need of API is being met through import. Under

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TRIPS agreement Bangladesh will enjoy manufacturing patented drugs until 2016.
Since most of the countries of the world will not be able to manufacture patented
drugs after 2005, there exists an excellent opportunity for foreign investors in bulk
drug manufacturing in Bangladesh. They will be able to cater to growing bulk drug
need of Bangladesh as well as 49 such other patent exempted countries of the world.
Bangladesh would be an excellent place for investors and relocating R&D set-ups for
reverse engineering, specially for those countries who will be restricted to
manufacture patented drugs after 2005.
Since India and China have very good expertise in API and formulation R&D, they
may like to manufacture the APIs outside their countries as they cannot manufacture
these ‘patented’ APIs in their countries after 2004.
Marketing is the process by which companies create value for customers and build
strong customer relationships in order to capture value from customer in return
(Kotler, 2005). Marketing is the backbone of all industries. Though pharmaceuticals
produce life saving drugs, they also need marketing. But the
marketing is to some extent different from other industries. Some major
characteristics of marketing sector are given below:
• Their distributional channel includes invoice system, own distribution channel.
• Medical representatives are the key persons in marketing.
• For promotion, the groups such as doctors, surgeons are targeted.
• Major promotional strategies include printed promotional materials, physical
sample, and clinical materials.
• Special incentives are given to the doctors. For example, the doctors are given
honeymoon packages, the cost of which is borne by the pharmaceuticals.
The field level executives are playing the imperative role for marketing division.
Basically, they have taken the responsibility to market the products of their
companies. So, the success of a pharmaceutical industry intensively depends on the
efficiency and effectiveness of the medical representatives. If an organization wants
efficient employees in this section, he should to satisfy these representative.

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Because of cost advantage, large pharmaceutical companies of highly regulated
markets are now going for joint venture projects. They have already signed several
contracts with companies of India and China. Bangladesh also has enormous
opportunities to go for joint ventures with these large global companies for
manufacturing pharmaceutical finished products.
6. AREAS FOR TAKING IMMEDIATE ACTION
I) Investment in Facilityand R&D
As India, China and all present sources of raw materials are signatory of WTO, it is
naturally expected that they will not produce raw materials of patented products from
2005 onwards. Even if they do, they will not be allowed to export. Although as an
LDC, Bangladesh is allowed to produce patented products, it is unknown where it will
get the Raw Materials/APIs to produce these drugs after 2004. Accordingly,
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 and 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.
II) API Industrial Park
In Bangladesh, treatment of both solid and liquid wastes is presently being done by
individual manufacturers, which elevates the product cost significantly.
On the other hand, in India and China, there are public /govt. Incinerators and
Effluent Treatment Plants (ETP) to dispose off solid and liquid wastes respectively.
So, these countries have very successfully reduced their cost of production in
pharmaceuticals.
Although Pakistan does not have these export opportunities as revealed by
WTO/TRIPs, they are also establishing an Industrial Estate at Lahore, named ‘Sundar
Industrial Estate’ comprising 1500 acres of barren land and with combined effluent
treatment plant, solid waste disposal system etc.

17 | P a g e
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.
III) RegistrationRequirement for Imported Products
Most of the countries like India, China and Singapore have already upgraded their
registration requirement of imported products for all new-comers which is believed to
be almost as stringent as the highly regulated markets. These countries are thereby
creating barriers to entry for all substandard drugs. Like these countries, Uganda and
Tanzania also have upgraded their registration requirements of imported products
though their market is mostly depended on 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. The manufacturing facilities and
documentation of small pharmaceutical companies also needed to be upgraded
immediately.
IV) Independent Drug Testing Laboratory (DTL)
There are two DTL in Bangladesh, one in Dhaka and the other in Chittagong. These
two DTLs 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.

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V) Incentives for Export
Since 1990, the Govt. of India has been offering various supports and incentives for
export of pharmaceutical finished formulations and APIs. In China, there is huge
incentive for pharmaceutical export. On the contrary, in Bangladesh there is no such
incentive for pharmaceutical export. As a result, Bangladesh is gradually becoming
less competitive in most of the overseas markets where India is operating. Though the
Govt. of India was supposed to stop these incentives but in practice they are still
continuing with such supports and incentives.
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.
Despite all these tasks in hand, there are huge export opportunities for Bangladesh in
the years to come. Till now, Indian and Chinese export of branded generics is
significant that may abruptly be ceased immediately from 2005. If the
abovementioned issues can be addressed immediately, there is no reason why
Bangladesh would not be able to export pharmaceuticals worth Tk. 20000-25000
crore in next few years. The future is enormous, provided that Bangladesh prepares
itself to avail the opportunity.
7. GLOBAL PRESENNCE
In early 90’s, few companies took initiatives to export pharmaceuticals from
Bangladesh. Because of that pioneering role of these few companies, Bangladesh
could fulfill the national aspiration of turning its pharmaceuticals industry into an
exporter of quality medicines.
Bangladesh has just started its overseas business operation. As it first move towards
internationalization Bangladesh entered few overseas markets with the export of
basics chemicals. So far Bangladesh exported its basic chemicals to many countries
namely, Iran, Hong Kong, South Korea, Malaysia, Taiwan, Vietnam, Thailand &
Nepal.

19 | P a g e
After being successful in exporting basic chemicals, few leading companies also
started registering & exporting their finished formulations in Sixty Two countries
namely:
o Australia
o Afghanistan
o Brazil
o Canada
o Colombia
o Cambodia
o Cosovo
o Djibouti
o Ecuador
o France
o Germany
o Ghana
o Hungary
o India
o Indonesia
o Japan
o Jordan
o Korea
o Lebanon
o Mexico
o Mozambique
o Myanmar
o New Zealand
o Netherlands
o Norway
o South Africa
o Spain
o Sweden
o Syria
o Singapore
o Russia
o Tanzania
o Thailand
o Taiwan
o Togo
o UAE
o USA
o Venezuela
o Zimbabwe
o Ukraine
o Georgia
o Pakistan
o Srilanka
o Vietnam
o Nepal
o Kenya
o Yemen
o Malaysia
o Iran
o Philippines
o Sudan
o Bhutan
o Hong Kong
It is worth that the world renowned hospitals & institutions like KK Women,
ChildrenHospital and Raffles Hospital of Singapore, MEDS of Kenya and Zihnnah
Hospital of Pakistan are regularly using the pharmaceuticals products of Bangladesh.

20 | P a g e
Today, a large number of Pharmaceuticals manufacturers of Bangladesh like
Beximco, Square, Novarties, Opsonin, Acme, Aristopharma, Eskayef, ACI, Renata,
Orion, Jayson, Hudosn, etc are involved in export operations.
RECENTY EXPORT OF SOME POTENTIAL PHARMACEUTICALS
EXPORTERS OF BANGLADESH
(Value in US$)
Name of the Company Export Year of Export
Novarties (Bangladesh) Limited 12,820,162.80 2004 ~2005
Beximco Pharmaceuticals Ltd 1,400,000.00 2004
Square Pharmaceuticals Ltd 1,200,000.00 2004
Jams Pharmaceuticals Ltd 633,721.20 2000~2004
Jayson Pharmaceuticals Ltd 626,546.89 2004
The Acme Laboratories Ltd 600,000.00 2004
Eskayef Bangladesh Ltd 331,876.12 2004
Aristopharma Limited 305,648.34 July 2004 ~ June 2005
Renata Limited 281,788.00 2004
Navana Pharmaceuticals Limited 240,175.74
Sept. 2003 ~ June
2005
Aventis Limited 223,999.00 2004
Advanced Chemical Industries
(ACI) Limited 156,392.00 2004
Essential Drugs Company Limited 124,687.50 2004
Globe Pharmaceuticals Limited 68,410.00 2005-2006
Opsonin Pharma Ltd. 34,109.17 2004
Source: Bangladesh Association of Pharmaceutical Industries

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8. EXPORT TREND OF PHARMACEUTICALS FROM
BANGLADESH
The growth of Pharmaceuticals export from Bangladesh during the period 2003/04 ~
2000/01 is tremendous. The country witnessed a growth of 83.94% in the
Pharmaceuticals export in the Fiscal year 2003/04 compare to the export of fiscal
2000/01. Observer believes that the sector will witness a high steady growth in the
coming years because of opportunities provided with the LDC from WTO.
Bangladesh Export of Pharmaceuticals by Destination
2003/04 2002/03
% Change
in FY
2003/04
Compare to
FY 2002/03 2001/02
% Change
in FY
2002/03
Compare to
FY 2001/02 2000/01
% Change
in FY
2001/02
Compare to
FY 2000/01
Brazil 1,883 1,333 41.26 268 397.39 -
Belgium 1,254 - - 57 (100.00) - -
Srilanka 899 601 49.58 427 40.75 257 66.15
Myanmar 863 639 35.05 628 1.75 599 4.84
Spain 794 21 3,680.95 8 162.50 - -
Pakistan 629 451 39.47 759 (40.58) 875 (13.26)
Indonesia 556 207 168.60 30 590.00 - -
The
Netherlands 547 710 (22.96) 178 298.88 38 368.42
Iran 439 92 377.17 391 (76.47) 167 134.13
Yemen 412 328 25.61 596 (44.97) 489 21.88
Kenya 356 236 50.85 144 63.89 90 60.00
PNG 321 13 2,369.23 13 - - -
Singapore 276 35 688.57 20 75.00 1,218 (98.36)
Finland 260 1 25,900 - - - -
Vietnam 249 243 2.47 457 (46.83) 866 (47.23)

22 | P a g e
Germany 227 4 5,575 - - - -
Nepal 189 111 70.27 145 (23.45) 122 18.85
France 146 92 58.70 23 300.00 - -
Sweden 129 211 (38.86) - - - -
Greece 127 32 296.88 - - - -
Liberia 127 - - - - - -
South Africa 126 253 (50.20) 172 47.09 171 0.58
Venezuela 124 46 169.57 - - 11 (100.00)
Ukrine 123 252 (51.19) 270 (6.67) 5 5,300.00
USA 114 296 (61.49) 792 (62.63) 915 (13.44)
UK 111 81 37.04 514 (84.24) - -
Afganistan 105 - - - - - -
Malaysia 94 59 59.32 45 31.11 67 (32.84)
Hongkong 84 182 (53.85) 47 287.23 40 17.50
Japan - 7 (100.00) 26 (73.08)
Others 4,416 4,664 (5.32) 3,260 43.07 4,475 (27.15)
Total 12,692 9,046 40.31 6,602 37.02 6,900 (4.32)
Source: EPB

23 | P a g e
The export of
pharmaceutical products over the last three fiscal years (FYs) increased on an average
by 20 per cent every fiscal.
The products are now being exported to more than ninety countries across the world.
The exports stood at $39 million in the FY 2010-11, $48 million in FY12, $60 million
in FY13 and $69 million in the last fiscal (FY14), as per statistics of the Export
Promotion Bureau (EPB).
A market analyst said as Bangladesh is a least developed country (LDC), it could
increase its export market share by manufacturing any kind of patented and patent-
expired drugs.
He said as the developing countries like India, Pakistan and China needed to pay
royalty for manufacturing patented drugs due to their 'developing country' status, they
"are not our competitor in the international market for the patented products."
Apart from enjoying the transitional period under TRIPs agreement in the WTO,
"Bangladesh is in a position of paying less in wages and other overhead costs," an
exporter said.
He said a large local market, drug efficacy, quality and achieving export recognition
in highly regulated markets by some leading local firms paved the way for tapping

24 | P a g e
new export destinations and it was already going to more than 90 countries.
An official in the EPB said: "Our pharmaceutical export missed the target in the
FY14. But we hope it will not happen in the event of the next target."
He said the export target for pharmaceutical products for the last fiscal year was
$71.78 million. But during the period the exports stood at $69.24 million. It was
higher 15.75 per cent than that of the fiscal 2013.
The EPB official said: "The new export target for pharmaceuticals may be set by this
month and we hope this time exports would exceed the target as already some local
firms got regulatory market access permission and new export destinations are
explored in African countries."
An office bearer of Bangladesh Association of Pharmaceuticals Industry (BAPI) said:
"We can't compete in the export market with India, China and other developing
countries, as they do have their own raw materials and need not pay duty on raw
materials."
He said the high cost of raw materials might be reduced if the local manufacturers
could produce active pharmaceutical ingredients in the country.
He said though it was late, the API Park in Munshiganj might be ready shortly and the
manufacturers would be able to set up their API units there.
Another leading pharmaceutical company owner said in the European and US markets
it was very tough to enhance exports as the product registration process in those
countries was time consuming.
He said a drug product registration might take three to four years in the EU and US
markets.
He also said unlike the highly regulated countries the product registration was less

25 | P a g e
complex in the African, Asian and Middle East countries and Bangladeshi products'
penetration into those markets already started.

26 | P a g e
9. Human Resources
Human resources are people recruited in the organization and treated as the prime
mover and an important element for success of any organization (DeCenzo &
Robbins, 2005). The sector consistently creates job opportunities, especially for
highly qualified people. Pharmaceutical companies are either directly or
indirectly contributing largely towards raising the standard of healthcare and standard
of living byenabling local healthcare personnel to gain access to newer products and
also to latest drug information.
Like other industries, pharmaceutical industry also believes that the human resources
are most valuable asset for the organization. Pharmaceutical industry is making
considerable investments in attracting and developing competent professional human
resources. Pharmaceuticals not only foster entrepreneurship, but also consciously
encourage entrepreneurship in their organizational environment. This leads to
innovation and creativity transformed into new products, services and new ways of
doing things. To get most effort strom human resources, pharmaceutical industries
implement programs like decentralization, job enrichment and job rotation. The
extent of empowerment enjoyed by people at various levels of the organization
enables each employee from the very bottom to the top, to contribute to the overall
momentum of the companies.
10. Training and Development
Training refers to instruction provided for a current job and has a rather narrow focus
and should provide skills that will benefit the organization rather quickly.
Development, on the other hand, has a broader scope and may not be focused on
either the present or future job but more on the organization’s general long-term
needs (Anthony et al, 2003). Pharmaceutical industries are continuously
striving to explore the necessary competences of the employees, especially the
marketing executives to face the challenges of the competitive environment. They
arrange different types of learning programs which are enforcing as a motivation too
to upgrade necessary knowledge and skills of their employees. By interviewing the

27 | P a g e
employees of different pharmaceuticals the researcher comes to know that they
participated in various training programs that include: Pharmaceutical marketing
situation beyond 2005, Company formation, regulatory compliance and company
meeting, Industrial control and mechatronics, Continuous improvement and
changing behavior, Presentation skills, General guidelines of Standard Operating
Procedure (SOP), Sanitation, hygiene and environment control, Maintenance of
equipments, calibration and validation, Industrial automation,
11. Exporting
Exports are goods and services produced by a firm in one country and then sent to
another country (Rugman, 2004). To export products to developed markets,
companies must bring their factories into conformance with GMP (Good
Manufacturing Process) standards and by this process, the vast majority of Indian
pharmaceutical exports went to other developing countries with similar disease
profiles and disregard for patent protection (Smith, 2000). 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. In 2000, Bangladesh imported
US$84,000,000 worth of medicinal and pharmaceutical products and had negligible
exports and some recent statements by industry representatives suggest that exports
will increase in the near future (VanDuzer,
2003). Bangladesh is exporting their pharmaceuticals products to Vietnam,
Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand,
and some countries of Central Asia and Africa. It also has a large market in
European countries.
In Bangladesh, there are about 50 pharmaceuticals companies, who are leading the
local market. But all of them are not engaged in exporting. The above figure gives a
clear about the market share in export marketing from Bangladesh. Novartis is leader
in export marketing. Though Novartis is a foreign organization and they remit their

28 | P a g e
profit to their parent country, they are paying different types of tariffs and taxes to the
government of Bangladesh.
Since the Doha declaration in WTO / TRIPS Agreement declaration in 2001, our
govt. has justallocated land for the proposed central API (active pharma ingredient)
facility. Expert said that if you don't have the backward-integrated API or raw
material industry, you cannot be competitivein export markets. India is competitive in
world market because it has vibrant, world class APImanufacturing capabilities. APIs
occupy a significant portion of cost of pharma products, andcheap labor cost is not a
huge advantage as it is always publicized by many. Sad but true- we arenowhere near
India in terms of skilled manpower or process capabilities, and there is nonoticeable
progress to develop the skill set or manpower. Again, the industry is yet to have
anybioequivalence testing facility which is mandatory for product registration in
developed markets,and there is mounting pressure from even semi regulated markets
for such compliance. Theglobal generic drug market is now $130 billion, and US is
the market leader with more than $45billion whereas India's presence is strong with
$9 billion and ours only $45 million.
Bangladesh is now exporting a wide range of pharmaceutical products covering all
major therapeutic classes and dosage forms. Beside our regular brands, we are also
exporting high-tech specialized products like inhalers, Suppositories, Nasal Sprays,
Injectable and infusions. Apart from our overseas retail customers, we are even
supplying to world-renowned hospitals and institutions like Raffles Hospital of
Singapore, Jinnah Hospital of Pakistan, MEDs of Kenya,SPC of Sri Lanka and KK
Women & Children Hospital of Singapore. The product quality, packaging and
presentation of our products have been highly appreciated in all the countries were
exporting.
Export Scenario As said before pharmaceuticals sector is the 2nd foreign currency
earner sector in Bangladesh. Last five years it earns at least $30 million. Last seven
years margin are given below Export of Bangladesh Pharmaceutical Sector (Million
in $).

29 | P a g e
Globally Bangladeshi pharmaceuticals companies were doing a much better business
in 2010.Top ten companies have almost reached their expected sales target.
According to a June 2010 Business Monitor International (BMI) report,
Bangladesh had a domestic pharmacy market worth Year Earnings
2010 41
2009 36
2008 43
2007 38
2006 31
2005 22
2004 13
Export Prospect of Pharmaceuticals Sector in Bangladesh Bus 502: Managerial
Communication
Tk. 7,000 crore in 2010 and export worth $40.69 million; expert says it could be
reached domestic worth Tk. 1000 crore export worth $45 million in 2011 and
domestic worth Tk.1200export worth $48 million in 2012.
Top ten Bangladeshi pharmaceuticals companies total overseas sales in 2010 given
below
Barriers
1. High cost of registration for their export items and restriction on transfer of funds
for promotional activities.
2. The fixed mark-up system of pricing helped keep the prices of pharmaceutical
products low; this made it difficult to cover costs of marketing and distribution.
3. In order to export a drug to a regulated market and to some moderately regulated
market, it is mandatory to provide bioequivalence data. At present there is no
bioequivalence laboratories exist in Bangladesh and we have to conduct this
experiment abroad at a high price.

30 | P a g e
4. Weaknesses in government policy on pharmaceuticals.
5. Bangladesh is also being deprived of the technology transfer where the major
strength of the multinationals lie.
6. Pharmacies are not adequately supervised to ensure the quality of drugs sold
there.Sometimes pharmacies are not supervised at all by the DDA because of the
inadequatestrength of the drug administration.
APIs (Active Pharmaceutical Ingredients):
There are massive Scope in the overseas markets. There is no strict registration
requirement and promotional costs are also low for API. If we maintain cost
effectively in this particular matter; it will be a huge opportunity for us for exporting
our raw materials in foreign markets.
Bangladesh Pharmaceutical Society is planning to set-up a “Reference Laboratory”
for appeal, biopharmaceuticals and pharmaco kinetic analysis and research. They are
also seeking foreign participation in developing this laboratory. Opportunities have
been created in Bangladesh for bioequivalence study, validation report, clinical trials
and manufacturing plant.
Top Ten Company Export Sales (2010)$
Square 63.57 Eskayef 22.10Incepta 54.87 Renata 14.53Beximco 48.17 ACI
13.30Acme 36.20Aristo pharma 10.70Opsonin 29.70 Drug International 08.36
Export Prospect of Pharmaceuticals Sector in Bangladesh Bus 502: Managerial
Communication audit mechanism. These sub-sectors would need more investment in
future. The industry created opportunities for foreign direct investment. Some of the
pharmaceutical manufacturers of Bangladesh have made multimillion-dollar
investments on new plant and facilities conforming to USFDA and UK-MHRA
Standards. They have sufficient production capacity for contract
(“Toll”) manufacturing including an abundant and cheap labor force.

31 | P a g e
1. Support needs to buster export
2. Removal of export barriers.
3. Strengthening of drug administration.
4. Development of independent drug testing laboratory DTL.
5. Development of clinical testing / Bioequivalence centers.5.
6. Establish API Industry Park.
7. Introduce CGMP (Current Good Manufacturing Practice) training.7.
12. Importing
Importing is acquiring or purchasing the goods or products which have been made in
another country (Skinner & Ivancevich, 2003). Bangladesh is importing the medicinal
products from different countries, especially from India. Different organizations of
this country are related to import the pharmaceuticals products and raw materials of
pharmaceutical industries. Novo and Mediates are importing maximum amount of
these types of products. Other organizations are engaging to import the
pharmaceuticals products. They are- Sanofi, Aventis, Glaxo Smithkline, Sandoz,
Novartis, Roche, Unimed, Servier etc.
13. ForeignCompetitions
At the beginning the foreign pharmaceuticals were dominating the market in our
country. Still now, Pharmaceuticals industries are facing foreign competition. But our
industry is not afraid of this foreign competition. There are many multinational
pharmaceutical organizations which have established their plants in Bangladesh and
importing their raw materials from abroad. Among these competitors, Roche, Glaxo

32 | P a g e
SmithKline, Novartis are leading. In export market, the Novartis is playing the
dominant role.
14. Dumping
Dumping is a situation when in which a company sells its products for lower prices
than the market price to capture the market share (Griffin & Pustay, 2001). From the
top management of the pharmaceutical companies, we got to know the some Indian
medicines are sold in the country market at a lower price than Bangladeshi medicines
but the medicine of developed countries and their origin country are sold in a
competitive price, even in higher price. This creates the barrier to capture the market
share by Bangladeshi pharmaceutical industries. Owners of the pharmaceutical
companies think that the government should take actions to stop this practice.
15. CustomerChoice
Customer is a person who buys the products as well as consumes the products
and consumer only consumes the products (Chowdhury, 2000). Pharmaceutical
industries are dealing with life saving drugs; here customer choice does not
change so rapidly. People may prefer one brand to another. But the medicine may
carry the same compound/ same ingredients.
Customer choice depends on the customers’ reliance upon the company. For example,
Beximco’s Napa, and Glaxo’s Parapirol carry the same compound and used for the
same purpose. But, the customer purchases one of them. Customers usually prefer
some foreign medicine in case of sensitive problem. However, our local pharmacies
do not produce all the sensitive drugs, especially injections.
This research also conducted a small survey over the customer of medicinal product
and their choices. The sample was taken from different hospitals and pharmacy that
came to buy the products.

33 | P a g e
CUSTOMER’S CHOICE OF
BRAND NAME
Brand Name Respondent (in %)
Square 38
Beximco 24
Incepta 16
Glaxo SmithKline 8
Acme 6
SK-F 4
Others 4
Source: Primary data collected by sample survey, 2010.
The above chart represents the scenario of customer choice toward the brand name.
Most of the customers choose their medicine produced by square pharmaceuticals
limited. According to the customer choice, no organization can play dominant role in
the market.
16. ResearchandDevelopment
Research is defined as the systematic and objective process of gathering, recording,
and analyzing data for aid in making decision and development (Zikmund, 2005).
Every organization is related to research & development. The organization becomes
backdated which is not related to update their product. In pharmaceutical sector,
multinational corporations are more concerned about research and development than
locally owned companies. The implication is that MNCs will need to find ways to
increase their R&D productivity, and it also means that Indian and Chinese firms
with relatively novel approaches to product and process development may find
opportunities opening up for them, whether through go-it-alone strategies or through
co-operative R&D partnerships with MNCs (Grace, 2004).
In one model, the primary function of an R&D group is to develop new products
In the other model, the primary function of an R&D group is to discover and create
new knowledge about scientific and technological topics for the purpose of
uncovering and enabling development of valuable new products, processes, and
services.

34 | P a g e
Under both models, R&D differs from the vast majority of a company's activities
which are intended to yield nearly immediate profit or immediate improvements in
operations and involve little uncertainty as to the return on investment (ROI). The first
model of R&D is generally staffed by engineers while the second model may be
staffed with industrial scientists. R&D activities are carried out by corporate
(businesses) or governmental entities.
Pharmaceutical’s R&D team is committed to the development and introduction of
novel drugs and drugs delivery systems that make them a frontrunner in the
Pharmaceuticals industries. But budget for the research and development is not
sufficient for appropriately doing this task. Research & Development are the
main reasons for the progressive consolidation of our industry & fifteen years
ago, the ten largest companies commanded 25% of the global market; today their
market share is over 50% for concerning R & D (Humer, 2005). The R& D team
comprises of highly qualified and trained technical personnel continuously striving
for product and process innovation and up gradation.
The sincere and relentless effort of the R& D team has taken the company a step
further through introduction of high tech Anti-AIDS and Anti-cancer products in
the recent years. A good number of APLs are also in the development pipeline to
ensure availability of raw materials in the post WTO era. With their continuous
investment in R&D and cutting –edge technology, Pharmaceutical is moving forward
to meet tomorrow‘s healthcare needs.

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17. EXAMPLES OF A FEW LEADING PHARMACEUTICAL
INDUSTRIES IN BANGLADESH
i) Beximco Pharmaceuticals Ltd.
Head Office:
19 Dhanmondi R/A, Road – 7
Dhaka-1205
Tel: 861-9151, 861-9091
Fax: 880-2-861-3888
E-mail: info@bpl.net
Beximco Pharmaceuticals Ltd. (BPL) is a member of the Beximco Group – the largest
private sector business conglomerate of Bangladesh, comprising 8 divisions and over
22000 employees. BPL, one of the largest pharmaceutical as well as bulk drug
manufacturers of Bangladesh started its journey back in 1980 with manufacturing and
marketing of licensee products of Bayer AG, Germany and Upjohn Inc. of USA.
Beximco Pharma is now manufacturing and marketing various types of
pharmaceutical finished formulations covering almost all major therapeutic classes,
dosage forms and strengths. Currently, BPL is producing and marketing 106 products
with 172 strengths. It is into various therapeutic classes, with major emphasis on i)
Antibiotics, ii) Antiulcerants and Antacids iii) Cardiovascular Drugs, iv) NSAIDs, v)
Analgesics and Antipyretics, vi) Vitamins and Iron Supplements, vii) Antidiabetics,
viii) Antifungals, ix) Asthma Prophylactics and Bronchodilators and x) Nasal
Decongestant and Anti-inflammatory Drugs.
Apart from producing tablets, capsules, syrups, suspensions, solutions, drops, creams,
ointments, gel etc., currently the company is also into specialized products like i)
Inhalers, ii) Nasal Sprays and iii) Suppositories.
In addition to local market, BPL’s export activities are there in nineteen countries of
three continents- Asia, Europe and Africa. For its outstanding export performance,

36 | P a g e
BPL received Bangladesh’s highest award for export, the National Export Trophy,
Gold in 1994-’95. BPL is the first pharmaceutical company in Bangladesh to receive
such an award. BPL was also awarded National Export Trophy Gold for two
consecutive years 1998-1999 & 1999-2000. BPL is the record three times winner of
this national highest recognition for export.
BPL’s commitment is to always offer the best, both in product quality and services to
its customers. Quality is the measure of excellence in the field of pharmaceutical
products. BPL feels that it has an incalculable social liability of providing safe,
efficacious and highest quality drugs. Equipped with the latest & the most advanced
state-of-the-art technologies BPL team is committed to serve its customers. Through
the highest quality drugs BPL has succeeded in gaining the confidence & trust of
doctors & patients all over the country.
BPL has transformed its activities, culture, style and philosophy to meet the demands
of the new millennium. Business diversifications that are strategically important for a
sustained growth are results of its vision of the future. Several new bulk drug facilities
are being developed to backward integrate their high volume products. A USFDA
standard multi-million dollar pharmaceutical formulation plant is nearing completion.
This would be one of the most modern plants in this region.
ii) Square Pharmaceuticals Ltd.
Square Centre
48, Mohakhali C/A Dhaka-1212
Tel: 882-7733, 882-7729-38 Fax: 880-2-885-9704 E-mail: isaac@squaregroup.com
SQUARE today symbolizes a name – a state of mind. But its journey to the growth
and prosperity has been no bed of roses. From the inception in 1958, it has today
burgeoned into one of the top line conglomerates in Bangladesh. Square
Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position
in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to
becoming a high performance global player.
Square Pharmaceuticals Limited (SPL) is the largest pharmaceutical company in
Bangladesh and it has been continuously in the 1st position among all national and
multinational companies since 1985. It was established in 1958 and converted into a

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public limited company in 1991. The sales turnover of SPL was more than Taka 5
Billion (US$ 90 million) with about 15% market share (April 2003 – March 2004)
having a growth rate of about 16%.
-
Tablets : (Total Dosage Form = 110 Nos.)
Non-Coated (plain, chewable, dispersible, vaginal)
Coated (sugar coated, film coated, enteric coated)
Sustained/Extended Released (coated, non – coated)
Capsules : (Total Dosage Form = 35 Nos.)
Granulated Material filled
Pellets Filled
Suppositories : (Total Dosage Form = 06 Nos.)
Suppocire based
Injections : (Total Dosage Form = 32 Nos.)
Vials containing Dry Powder for Injections
Small Volume Liquid Parenterals
Liquids : (Total Dosage Form = 25 Nos.)
Oral Syrups (Sugar based, Non-Sugar based)
Oral Suspensions
Topical Liquids
Spray, Drops, Ointment, Cream
and Powder
: (Total Dosage Form = 42 Nos.)
Small Volume Sterile Eye & Ear Drops
Small Volume Nasal Drops & Sprays
Topical Ointments & Creams
Topical Antibiotic Powder
Oral Dry Powders : (Total Dosage Form = 30 Nos.)
Dry Suspensions (Antibiotic & Anti Infectives)
Dry Syrups (Antibiotics)
Dry Powder Inhalers : (Total Dosage Form = 08 Nos.)

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Partial Filled (Premix) Capsules for Respiratory Tract Application with a Device
MeteredDose Inhalers : (Total Dosage Form = 05 Nos.)
Pressurized Canisters for Oral use with an Actuator
The Chemical Division of Square started commercial production in 1995. From the
year 1997 it started it’s full-fledged production and marketing to all top
pharmaceuticals within the country including Aventis Pharma, Novartis Bangladesh
Ltd., Glaxo Smith Kline, ACI Ltd., Reckitt & Colman, Beximco Pharmaceuticals
Ltd., The Acme Laboratories Ltd, Eskayef Bangladesh Ltd., Opsonin Chemicals,
Renata Ltd., Essential Drugs Co. Ltd. etc. with good reputation and loyalty.
Square started exporting finished pharmaceutical formulations since 1987. And it is
the pioneer in pharmaceutical export from Bangladesh.
Square offers more than 200 molecules in over 350 formulations, from its 2 WHO
GMP-compliant manufacturing plants.
iii) The ACME Laboratories Ltd.
Head Office:
46, Satmasjid Road, Dhanmondi
Dhaka-1209
Tel: 811-8692-6
Fax: 880-2-811-3188
E-mail: acmeexpo@bangla.net
The ACME Laboratories Ltd. is the second largest manufacturer and exporter of
Human, Herbal and Animal Health Pharmaceutical Products in Bangladesh. Her
Certifications include:

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18. Drug Discoveryand Drug Development
i) Drug Discovery: Drug discovery is the process by which potential drugs are
discovered or designed. In the past most drugs have been discovered either by isolating
the active ingredient from traditional remedies or by serendipitous discovery. Modern
biotechnology often focuses on understanding the metabolic pathways related to a disease
state or pathogen, and manipulating these pathways using molecular biology or
biochemistry. A great deal of early-stage drug discovery has traditionally been carried out
by universities and research institutions.
ii) Drug Development: Drug development refers to activities undertaken after a
compound is identified as a potential drug in order to establish its suitability as a
medication. Objectives of drug development are to determine appropriate formulation and
dosing, as well as to establish safety. Research in these areas generally includes a
combination of in vitro studies, in vivo studies, and clinical trials. The amount of capital
required for late stage development has made it a historical strength of the larger
pharmaceutical companies.
In pharmaceutical sector, multinational corporations are more concerned about research
and development than locally owned companies. The implication is that MNCs will need
to find ways to increase their R&D productivity, and it also means that Indian and
Chinese firms with relatively novel approaches to product and process development may
find opportunities opening up for them, whether through go-it-alone strategies or through
co-operative R&D partnerships with MNCs.
Pharmaceutical’s R&D team is committed to the development and introduction of novel
drugs and drugs delivery systems that make them a frontrunner in the Pharmaceuticals
industries. But budget for the research and development is not sufficient for appropriately
doing this task. Research & Development are the main reasons for the progressive
consolidation of our industry & fifteen years ago, the ten largest companies commanded
25% of the global market; today their market share is over 50% for concerning R & D.
The R& D team comprises of highly qualified and trained technical personnel
continuously striving for product and process innovation and up gradation.
Often, large multinational corporations exhibit vertical integration, participating in a
broad range of drug discovery and development, manufacturing and quality control,

40 | P a g e
marketing, sales, and distribution. Smaller organizations, on the other hand, often focus
on a specific aspect such as discovering drug candidates or developing formulations.
Often, collaborative agreements between research organizations and large pharmaceutical
companies are formed to explore the potential of new drug substances. More recently,
multi-nationals are increasingly relying on contract research organizations to manage
drug development.
The sincere and relentless effort of the R& D team has taken the company a step further
through introduction of high tech Anti-AIDS and Anti-cancer products in the recent
years. A good number of APLs are also in the development pipeline to ensure availability
of raw materials in the post WTO era. With their continuous investment in R&D and
cutting –edge technology, Pharmaceutical is moving forward to meet tomorrow‘s
healthcare needs.
iii) Drug Distribution
Bangladesh’s drug distribution marketplace is composed of small independent
pharmacies. This structure combined with an under-regulated industry, few firms
manufacturing pharmaceuticals, and companies competing to sell branded generics
based on brand names provides ample opportunity for the sale of low-quality drugs at
higher prices. And this partly explains why the quality of drugs available for sale
varies significantly in Bangladesh.
A visit to four pharmacies in Dhaka and ten pharmacies in the bordering Gazipur,
Narayanganj, Keranigonj and Manikgonj districts reveal that pharmacies sell from
200-22,000 types of medicines each. Each type of medicine has one to twenty five
possible brands. Large pharmacies reported buying medicines according to sales
trends – e.g. what sells the most. Medium and small pharmacies reported being linked
with a medical doctor and thus sales are usually skewed towards that medical
professional’s preferences. Most pharmacies are individual shops, though some chains
are starting to develop, especially in urban areas. On average, each pharmacy visited
has 10-50 pharmaceutical firms that supply them medicines on a daily basis.

41 | P a g e
For example, Beximco Pharmaceuticals has 1,200 people visiting pharmacies daily to
take orders for drugs. None of the pharmacies visited will keep restocking any
medicine that they consider a slow item. Small pharmacies report of keeping a
medicine for a maximum period of six months.
Although there are approximately 300,000 private pharmacies in Bangladesh, the
government has only 26,000 pharmacies officially listed. The rest are illegal
pharmacies as they have no license / licensed pharmacist on staff. Pharmacists have
varying levels of education and many lack adequate training. For example, while the
four large urban pharmacies visited each had one professional pharmacist (with four
years of coursework), two of the medium-sized pharmacies visited had one person
trained for one year along untrained coworkers working as pharmacists. Rural
pharmacists can have high school graduates with approximately two weeks training.
The Bangladesh Pharmacist Society is currently implementing the first phase of a
three-phased program to improve the skills of pharmacists. The three-phased program
should be complete in seven to eight years.
While about 95% of the consumers in big pharmacies visited purchase medicines with
a prescription, as few as 50% of people in medium and small pharmacies visited have
a prescription. If people don’t have a prescription, they either come in and ask for a
specific drug or come in and describe their ailment to the pharmacist who then makes
a diagnosis and recommends a drug on the spot. Popular products include antibiotics
of various levels, pain-killers, and gastric remedies. People purchase one to ten tablets
or capsules at a time. The amount purchased depends more on the financial capacity
of the consumer than on the required dose of medicine.
There are several brands of each drug on the market with variable levels of quality. In the
urban areas, the pharmacies visited tended to sell the higher quality brands whereas in
more rural areas, the pharmacies visited tended to sell lower quality, lower cost brands.
The political sway of the district also influenced the selection of brands as pharmacies
tended to have brands associated with people who had power in that district. Medium and
small pharmacies reported stocking cheaper drugs as the consumers cannot purchase
expensive medicines. Pharmacies further away from the center of the city also had
increasingly more ayurvedic and herbal medicines.

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Key Points Regarding Drug Discovery and Development:
It takes 10–15 years to develop a medicine or vaccine.
The research-based pharmaceutical industry currently spends over USD 135 billion
on R&D per year.
In 2011, 35 new pharmaceuticals were launched, out of more than 3,200 compounds
in development.
In 2007–2011, the number of new chemical or biological entities launched on the
world market fell to 149 from 196 a decade earlier.
It costs an average of USD 1.38 billion to develop a single drug.
In 2011, 5 of the 10 leading global R&D firms were pharmaceutical companies
By the time a medicinal product reaches the market, an average of 12-13 years will
have elapsed since the first synthesis of the new active substance.
The cost of researching and developing a new chemical or biological entity was
estimated at €1,172 million ($ 1,506 million in year 2011 dollars) in 2012
On average, only one to two of every 10,000 substances synthesized in laboratories
will successfully pass all stages of development required to become a marketable
medicine.

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19. PROBLEMS AND PROSPECTS
Problemsof Marketing
i. Because of having no sufficient incentives in comparison with their effort, the
turnover rate of medical representatives is very high.
ii. Most of the time costs of marketing hardly affect the price of the medicine.
iii. Professionalism in marketing is not achieved yet in Bangladesh like other
developing countries.
iv. Lack of proper governmental laws and this implementation the law by the drug
administration.
v. Unstable political situation and different types of violence. vi. Effect of
globalization that has increased the competition.
vii. Smuggled production counterfeit, that’s coming from the neighbor
countries.
Prospects of Marketing
i. Marketing system is improving in this sector and proper marketing may help a firm
to achieve the aim.
ii. For free and fair competitions marketing can play a major role.
iii. Marketing can be regarded one of the most important weapons to face the
challenges of open market economy.
Problemsof Foreign Competition
i. Foreign competitors have more equipment, technology and plant facilities
than that of locally owned firms.
ii. Foreign competitors have their own local market so that they can absorb some
losses here.
iii. Foreign competitors get government help in some cases.

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Prospects of Foreign Competition
i. Foreign competitions made the country firms more eligible to face
challenges that arose after the year 2005.
ii. Pharmaceuticals industries will become more efficient in producing
medicine which may save our lives.
iii. The local firms will not face any rigorous problem in foreign countries as they
are accustomed in competition with foreign firms.
Problemsof Export
i. Unstable political situation is one of the vital reasons for not achieving the
expectation in export.
ii. Problems of port (both sea and air) hinder the timely export.
iii. Irresponsibility of customs officers is a regular phenomenon which results
in increase on the price and cost of medicine.
iv. Sometimes competition tends to follow unfair promotional activities.
v. Still now, the products of the pharmaceuticals industries of Bangladesh are not
world class.
Prospects of export
i. Competition is increasing the quality of medicinal products.
ii. For surviving in the future, competitive environment is necessary.
iii. Competition reduces monopolistic attitude of the firms. As a result, the
customers will be benefited by getting quality products.
iv. Export brings foreign currencies for the country which is helpful for the
reserve of the country.

45 | P a g e
Problemsof Customer Choices
i. One main problem is in producing rare drugs foreign companies are
ahead of us in terms of quality, experience and market share.
ii. Most of the time, to purchase the medicinal products is not depending on the
customer choice. Customers buy their product according to the prescription of
doctors.
Prospects of Customer Choices
i. By increasing quality, more customers as well as market share can be
absorbed.
ii. By producing rare drugs at home, the country can save its foreign
exchange.
iii. By extensive promotional activity, customer choice can be driven.
Problemsof Power Development
ii. Like other industries, there is a crucial problem faced by the
pharmaceutical industries that is power generation problem. They are not getting
power according to their demand.
iii. ‘Red-Tapism’ of govt. offices hinders the development of power generation
sector, where the government is not taking effective actions.
iv. The political unrest of the major parties are also hindering the development.

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20. CONCLUSIONS
The per capita consumption rate of medicine in Bangladeshi people is one of the
lowest in the world. However, the industry has been a key contributor to the
Bangladeshi economy since independence. Pharmaceutical industry is growing at an
expected rate with the development of healthcare infrastructure and increase of
health awareness and the purchasing capacity of people. Healthy growth is likely to
encourage the pharmaceutical companies to introduce newer drugs on
newer research products, while at the same time maintaining a healthy
competitiveness in respect of most essential drugs. If the government succeeds in
stopping corruption and the political unrest, the Pharmaceutical industry may grow
higher than lots of international pharmaceutical giants. But of course, the
technological improvement is must.
RECOMMENDATIONS
The proposed suggestions may help the pharmaceutical industries to reduce the
problems in different areas. These are as follows:
• The medical representative’s turnover is not adequate and equitable. So, the
organizations can take measures to increase the salary for the medical representatives.
• Advertising cost should be reduced and this is necessary to make the
marketing people aware of their profession.
• The local pharmaceutical companies should produce quality product by using
the updated equipment and raw materials, which can help them to acquire the market
share.
• Pharmaceutical companies should produce world class medicine which may
increase the demand for Bangladeshi drug in the world market.
• Industry should make the people aware of the local products and with that
they should ensure the quality medicine to earn confidence.

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• Pharmaceutical companies may take the initiative to generate the power for
continuous supply of electricity.
• The pharmaceutical companies should not violate the law imposed by the
government, which can hamper the trust of the people of the country.
• Organizations should produce their product in a hygienic environment and
maintain the highest standard.
• Government should take measures or formulate some clear–cut rules to
restrict the foreign pharmaceutical organizations to practice the concept of dumping
in this country.
REFERENCES
 Abbott T. A. (1995), “Price regulation in the pharmaceutical industry:
Prescription or placebo?” Journal of Health Economics, Volume 14,
Issue 5, December 1995, pp. 551-565.
 Anthony W.P., Perrewe P.L., Kacmar K.M. (2003), “Human Resource
Management: A Strategic Approach” Third Edition, The Dryden
Press, Harcourt Brace College Publishers, pp. 322-338
 Shamsul Huda
Export of pharmaceutical products up by 20 per cent Publish : 19 Jul, 2014

Export potentiality of pharmaceutical goods in bangladesh

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