[🇧🇩] Pharmaceutical and Chemical Industry in Bangladesh

[Saif]

Square Pharma’s Tapan Chowdhury to buy over Tk 32 crore worth of shares

Tapan Chowdhury, managing director of Square Pharmaceuticals, has expressed his intention to purchase 15 lakh shares of the company—the largest drug producer of the country—valued at over Tk 32 crore at the current market price.

www.thedailystar.net

Square Pharma’s Tapan Chowdhury to buy over Tk 32 crore worth of shares
He will buy 15 lakh shares at prevailing market prices

Tapan Chowdhury, managing director of Square Pharmaceuticals, has expressed his intention to purchase 15 lakh shares of the company—the largest drug producer of the country—valued at over Tk 32 crore at the current market price.

Chowdhury, also a sponsor of the company, plans to acquire the shares at the prevailing market price in both the public and block markets through the Dhaka Stock Exchange (DSE) within the next 30 working days, Square Pharmaceuticals said in a disclosure on the premier bourse's website.

As of 12:42pm, Square Pharmaceuticals' shares had declined by 0.14 percent to Tk 216.8 on the DSE, compared to the previous day's closing price of Tk 217.1.

Chowdhury's announcement comes two weeks after a similar declaration by Anjan Chowdhury, another sponsor director of Square, who also intended to buy 15 lakh shares, valued at Tk 32 crore at the market price at that time.

As of November 30 last year, Tapan Chowdhury held a 9.47 percent stake in Square Pharmaceuticals, a major concern of Square Group. Following the purchase, his total stake in the company will increase to 9.65 percent.

As of January this year, sponsors and directors collectively held 42.91 percent of Square Pharmaceuticals' shares, while the public owned 27.67 percent.

Foreign and institutional investors held 15.54 percent and 13.88 percent, respectively.

The pharmaceutical producer and exporter's net profit rose 26 percent year-on-year to Tk 660 crore in the October-December period of the 2024-25 fiscal year.

Higher income from investments and increased profits from associated companies contributed to Square Pharmaceuticals' earnings growth.

In the first half of the 2024-25 financial year, the company recorded a profit of Tk 1,269 crore, up 13 percent year-on-year, according to its second-quarter financial statement.

However, in the 2023-24 financial year, Square Pharmaceuticals' profit after tax declined by 5.34 percent year-on-year to Tk 1,559 crore.​

 

[Saif]

Pharma exports rise, but Feb slump raises eyebrows

Bangladesh’s pharmaceutical exports posted steady growth in the first eight months of the current fiscal year, buoyed by rising demand from developed markets, though a sharp decline in February raised concerns, industry experts said.

www.thedailystar.net

Pharma exports rise, but Feb slump raises eyebrows

Bangladesh's pharmaceutical exports posted steady growth in the first eight months of the current fiscal year, buoyed by rising demand from developed markets, though a sharp decline in February raised concerns, industry experts said.

The sector earned $145.46 million from July to February of fiscal year (FY) 2024-25, a 7.1 percent increase from $135.81 million in the same period a year earlier, according to data from the Export Promotion Bureau (EPB).

Industry insiders attributed the growth to the increasing popularity of Bangladeshi pharmaceuticals in key Western markets, including the United States, Australia and Europe.

In February alone, the sector generated $13.02 million, lower than the $16.81 million recorded in the same month of the previous fiscal year, marking a 22.6 percent decline.

The drop was largely driven by recent cuts in US foreign aid and a temporary halt in medicine shipments to Vietnam and Cambodia, where business activities slowed during New Year celebrations, industry insiders said.

"Our exports have grown due mainly to increasing orders from the US, Unicef and the World Health Organization," said Muhammad Zahangir Alam, chief financial officer at Square Pharmaceuticals, one of Bangladesh's leading drug manufacturers and exporters.

Regarding the February decline, he said month-to-month fluctuations in shipments are common and depend on the timing of export orders.

"We have long-term agreements in place to supply products to our buyers, so such fluctuations do not largely impact our exports," he added.

Alam also said that Square Pharma does not accept export orders on credit from new buyers as part of its policy to ensure payment security.

Mohammad Ali Nawaz, chief financial officer at Beximco Pharmaceuticals Ltd, said export orders have remained steady, with continuous direct supply to the US government.

"During the first eight months of the current fiscal year, we have received strong export orders, including from developed markets such as the US, South Africa and Australia," he said.

Nawaz noted that the company's export orders have been growing consistently, reflecting a positive trend in international business.

"This steady growth in exports is a strong indication of the company's resilience and adaptability in a competitive global market," he said.

Monjurul Alam, chief executive officer of Beacon Medicare Ltd, a unit of Beacon Pharmaceuticals, said that although EPB data shows sluggish exports in recent months, pharmaceutical shipments are actually rising.

He explained that shipments usually slow in January and February, as exports to Vietnam and Cambodia, two key importers, pause during this period.

"This seasonal slowdown explains the slight drop in February export figures," he said.

EPB data shows pharmaceutical exports fell 22.6 percent in February from January.

Alam expects exports to rebound in April as shipments to Vietnam and Cambodia resume. "There is no reason to be concerned about negative figures for one or two months of shipments," he said.

While pharmaceutical export figures are not large, they are important for the country's image and the industry, he added.

Ananta Saha, international business manager at Renata Ltd., echoed Alam's sentiments, saying export orders have remained steady.

However, he noted that export growth has not been as fast as expected.

Despite the slower pace, Renata remains optimistic about its long-term international business prospects, he added.

The case for Incepta Pharmaceuticals Ltd. is different, as the impact of US aid cuts directly affected its exports.

Arefin Ahmed, executive director at Incepta Pharmaceuticals, said the company was significantly affected by the recent cancellation of US aid funding.

"We regularly supply a large quantity of medicine to several countries, including Bangladesh, under the US aid programme. However, the sudden cancellation of this funding forced us to cancel two major vaccine shipments," he said.

The canceled shipment comprised 2 million injection doses worth $2 million.

Ahmed said USAID has been a loyal customer of Incepta, which is Bangladesh's second-largest generic pharmaceutical producer after Pfizer, the U.S.-based pharmaceutical giant.

The unexpected cancellation disrupted operations, affecting both revenue and the company's commitment to supplying critical medicines, he said.​

 

[Bilal9]

Pharma exports rise, but Feb slump raises eyebrows

Bangladesh’s pharmaceutical exports posted steady growth in the first eight months of the current fiscal year, buoyed by rising demand from developed markets, though a sharp decline in February raised concerns, industry experts said.

www.thedailystar.net

Pharma exports rise, but Feb slump raises eyebrows

View attachment 15291

Bangladesh's pharmaceutical exports posted steady growth in the first eight months of the current fiscal year, buoyed by rising demand from developed markets, though a sharp decline in February raised concerns, industry experts said.

The sector earned $145.46 million from July to February of fiscal year (FY) 2024-25, a 7.1 percent increase from $135.81 million in the same period a year earlier, according to data from the Export Promotion Bureau (EPB).

Industry insiders attributed the growth to the increasing popularity of Bangladeshi pharmaceuticals in key Western markets, including the United States, Australia and Europe.

In February alone, the sector generated $13.02 million, lower than the $16.81 million recorded in the same month of the previous fiscal year, marking a 22.6 percent decline.

The drop was largely driven by recent cuts in US foreign aid and a temporary halt in medicine shipments to Vietnam and Cambodia, where business activities slowed during New Year celebrations, industry insiders said.

"Our exports have grown due mainly to increasing orders from the US, Unicef and the World Health Organization," said Muhammad Zahangir Alam, chief financial officer at Square Pharmaceuticals, one of Bangladesh's leading drug manufacturers and exporters.

Regarding the February decline, he said month-to-month fluctuations in shipments are common and depend on the timing of export orders.

"We have long-term agreements in place to supply products to our buyers, so such fluctuations do not largely impact our exports," he added.

Alam also said that Square Pharma does not accept export orders on credit from new buyers as part of its policy to ensure payment security.

Mohammad Ali Nawaz, chief financial officer at Beximco Pharmaceuticals Ltd, said export orders have remained steady, with continuous direct supply to the US government.

"During the first eight months of the current fiscal year, we have received strong export orders, including from developed markets such as the US, South Africa and Australia," he said.

Nawaz noted that the company's export orders have been growing consistently, reflecting a positive trend in international business.

"This steady growth in exports is a strong indication of the company's resilience and adaptability in a competitive global market," he said.

Monjurul Alam, chief executive officer of Beacon Medicare Ltd, a unit of Beacon Pharmaceuticals, said that although EPB data shows sluggish exports in recent months, pharmaceutical shipments are actually rising.

He explained that shipments usually slow in January and February, as exports to Vietnam and Cambodia, two key importers, pause during this period.

"This seasonal slowdown explains the slight drop in February export figures," he said.

EPB data shows pharmaceutical exports fell 22.6 percent in February from January.

Alam expects exports to rebound in April as shipments to Vietnam and Cambodia resume. "There is no reason to be concerned about negative figures for one or two months of shipments," he said.

While pharmaceutical export figures are not large, they are important for the country's image and the industry, he added.

Ananta Saha, international business manager at Renata Ltd., echoed Alam's sentiments, saying export orders have remained steady.

However, he noted that export growth has not been as fast as expected.

Despite the slower pace, Renata remains optimistic about its long-term international business prospects, he added.

The case for Incepta Pharmaceuticals Ltd. is different, as the impact of US aid cuts directly affected its exports.

Arefin Ahmed, executive director at Incepta Pharmaceuticals, said the company was significantly affected by the recent cancellation of US aid funding.

"We regularly supply a large quantity of medicine to several countries, including Bangladesh, under the US aid programme. However, the sudden cancellation of this funding forced us to cancel two major vaccine shipments," he said.

The canceled shipment comprised 2 million injection doses worth $2 million.

Ahmed said USAID has been a loyal customer of Incepta, which is Bangladesh's second-largest generic pharmaceutical producer after Pfizer, the U.S.-based pharmaceutical giant.

The unexpected cancellation disrupted operations, affecting both revenue and the company's commitment to supplying critical medicines, he said.​

February slump is a blip and nothing to worry about.

We should reduce dependency of pharma exports to any single or regional market (Vietnam and Cambodia), spread out risks evenly.

 

[Bilal9]

Renata Approved to Export Parkinson’s Drug to Europe​

​

1 min read​

On Sep 4, 2024

Share
Renata, a leading Bangladeshi pharmaceutical company, has successfully secured approval to export its Cabergoline 0.5mg tablets to several European countries. The drug, used in treating conditions like Parkinson’s disease and hyperprolactinemia, has been cleared through the EU Decentralized Procedure (DCP), enabling its sale across a range of European markets.

The company made the announcement in a filing with the Dhaka Stock Exchange (DSE) on September 2, confirming that the approval grants access to markets including Ireland, France, Portugal, Italy, Denmark, Sweden, the Netherlands, Norway, and Spain. “This important milestone highlights Renata’s commitment to expanding its presence in Europe by developing and delivering high-quality, low-dose, high-potency medicines,” the company stated in its DSE announcement.

The 0.5mg Cabergoline tablets will be produced at Renata’s advanced UK MHRA-approved facility, which follows stringent quality control standards. The facility is designed to meet the specific requirements of the European market, ensuring the medication is produced to the highest quality standards. Renata also confirmed that the product will be distributed across Europe through a network of strategic partnerships, allowing widespread patient access to the treatment.

In addition to the European expansion, Cabergoline is already available in Bangladesh under the brand name Cabolin. This approval further cements Renata’s global standing in the pharmaceutical sector. Notably, last year Renata’s European subsidiary, Renata Pharmaceuticals (Ireland) Limited, received approval from the EU and German regulators to launch Cabergoletten 1mg and 2mg tablets for Parkinson’s treatment in those markets. Renata’s continued success in expanding its product reach reflects its growing influence and capability in the global pharmaceutical industry.

 

[Saif]

Impact on pharmaceutical sector

BANGLADESH’S pharmaceutical sector has experienced remarkable growth over the past few decades, transforming from a largely import-dependent industry to a thriving sector that meets most of the domestic demand for medicines. The sector is characterised by intense competition among local players...

www.newagebd.net

Impact on pharmaceutical sector
Ziauddin Hyder 21 April, 2025, 00:00

BANGLADESH’S pharmaceutical sector has experienced remarkable growth over the past few decades, transforming from a largely import-dependent industry to a thriving sector that meets most of the domestic demand for medicines. The sector is characterised by intense competition among local players, with a mix of large and small manufacturers operating in the market, transforming Bangladesh into one of the leading pharmaceutical markets in South Asia.

Bangladesh produces medicines to meet around 97 per cent of its domestic demand, with local manufacturers supplying a wide range of essential and non-essential drugs. Furthermore, the sector has been increasingly export-oriented, with Bangladeshi pharmaceutical proucts being shipped to more than 150 countries, including regulated markets such as the United States and Europe.

The growth of Bangladesh’s pharmaceutical sector can be attributed to several policy measures, including the National Drug Policy, the Drugs Control Ordinance 1982 and the patent exemption. While the national policy helped to build domestic manufacturing capacity in the pharmaceutical sector, Bangladesh’s status as a developing nation granted it a period of patent exemption under the British Patents and Design Act 1911, allowing domestic firms to produce generic versions of patented drugs at reduced costs. Other policy measures that contributed to the growth of this sector include tax incentives and holidays, import duty exemption, research and development support, value-added tax waiver, foreign currency assistance and National Active Pharmaceutical Ingredients and Laboratory Reagents Production and Export Policy introduced in 2018 to encourage API production and provides incentives such as cash incentives for producers who add value to their products.

Bangladesh’s graduation from the least developed country status in 2026 will significantly hurt this growing industry compared with the apparel sector for several reasons. As a result of this graduation, Bangladesh will lose the Trade-Related Aspects of Intellectual Property Rights transition period, which allowed the country to produce generic versions of patented medicines. This may lead to increased competition from multinational companies and potential loss of market share for local manufacturers. The apparel sector is not heavily reliant on intellectual property protection. While both he sectors are export-oriented, the pharmaceutical sector’s export may be more vulnerable to changes in international trade agreements and patent laws and may face increased competition from multinational companies, potentially leading to reduced market share and profitability.

The graduation will require Bangladesh to comply with stricter regulatory standards, including good manufacturing practices and good distribution practices. This may necessitate investments in infrastructure and quality control, which will add additional burden to the export-oriented pharmaceutical industry, as the country will no longer be eligible for preferential treatment under certain trade agreements. Furthermore, local manufacturers may face increased competition from multinational companies, potentially leading to market share loss and reduced profitability.

In order to mitigate risks to the pharmaceutical sector associated with the LDC graduation, Bangladesh needs to strengthen its regulatory framework to ensure compliance with international standards, including good manufacturing practices and good distribution practices. The local manufacturers also need to invest in research and development to develop products and stay competitive. This increased investment should be combined with training and capacity-building programmes for local manufacturers to enhance their competitiveness and compliance with international standards. Finally, the government needs to negotiate favourable trade agreements with other countries to maintain preferential market access for Bangladeshi pharmaceutical products.

In conclusion, graduation from the LDC status presents both challenges and opportunities for the pharmaceutical sector in Bangladesh. By strengthening the regulatory framework, investing in research and development and negotiating favourable trade agreements, Bangladesh can mitigate the negative impact and capitalise on the opportunities arising from graduation.

Dr Ziauddin Hyder is an adviser to the Bangladesh Nationalist Party chairperson and former senior health and nutrition specialist, World Bank Group.​

 

[Saif]

The promises and pressures of Bangladesh’s pharma industry

There is no doubt that Bangladesh’s pharmaceutical industry has shown remarkable potential.

www.thedailystar.net

The promises and pressures of Bangladesh’s pharma industry

VISUAL: ANWAR SOHEL

The pharmaceutical sector in Bangladesh, now valued at more than $3.5 billion (as of 2023), stands as one of the most compelling narratives of progress in the country's economic landscape. From meeting 98 percent of domestic medicine needs to reaching over 150 countries with exports, this industry has evolved into a cornerstone of both national health and economic resilience. Our pharmaceutical companies are not only providing affordable healthcare across the country, but they are also gradually earning recognition on the global stage. As we approach the country's graduation from the Least Developed Country (LDC) status in November 2026, there is a growing need for the industry to adapt to new global norms and challenges.

This transformation has not happened overnight. Decades ago, Bangladesh was heavily reliant on imported medicines. Today, it produces nearly all essential drugs domestically, including life-saving ones such as antibiotics, insulin, and cancer treatments. With a population exceeding 170 million, the demand for accessible and cost-effective healthcare continues to grow. The local pharmaceutical sector has stepped up in response, resulting in improved health outcomes and a strengthened national supply chain. Alongside this domestic impact, the country has extended its pharmaceutical reach to international markets. In FY2023-24, pharmaceutical exports were valued at $205.48 million, registering a 17.14 percent growth. Bangladeshi medicines reached regions in Africa, Southeast Asia, and even entered regulated markets like the United States and Europe. A key contributor to this success has been the industry's commitment to upgrading its technological capabilities and investing in more advanced manufacturing practices, including the production of biosimilars and complex generics.

Decades ago, Bangladesh was heavily reliant on imported medicines. Today, it produces nearly all essential drugs domestically, including life-saving ones such as antibiotics, insulin, and cancer treatments. With a population exceeding 170 million, the demand for accessible and cost-effective healthcare continues to grow. The local pharmaceutical sector has stepped up in response, resulting in improved health outcomes and a strengthened national supply chain.

Underlying this growth has been a strategic use of policy flexibility under the World Trade Organization's (WTO) Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. Bangladesh currently benefits from a waiver that allows the production of generic versions of patented drugs without the need for costly licensing. This policy has provided a significant competitive edge in global markets. However, this advantage will come to an end after November 2026. Once the waiver expires, companies will be required to obtain a licence to produce patented medications. This shift is likely to increase production costs, potentially affecting the affordability of life-saving drugs. At the same time, global pharmaceutical giants may reclaim market space that Bangladeshi firms have started to occupy.

The expiration of the TRIPS waiver is just one aspect of a broader set of challenges that the industry will need to address. One of the most pressing issues is the overwhelming dependency on imported raw materials, specifically active pharmaceutical ingredients (API). More than 95 percent of these are sourced from countries like India and China, which makes the entire production chain vulnerable to disruptions and external price fluctuations. Beyond sourcing materials, the path to entering highly regulated export markets is filled with obstacles. Certifications for compliance with international standards can be expensive and time-consuming, often delayed further by bureaucratic inefficiencies at home. Building new manufacturing facilities or upgrading existing ones also tends to move slowly under the current administrative frameworks.

Another critical concern lies in the gap between the industry's technical demands and the available talent pool. Modern pharmaceutical manufacturing, especially in fields like biologics and hormone-based treatments, requires specialised training and a strong foundation in both research and engineering. Although progress has been made, there is still a long road ahead in terms of workforce development. Infrastructure development has not kept pace either. Projects like the long-awaited API Industrial Park have faced repeated delays, often tied to policy inconsistencies and administrative bottlenecks. As Bangladesh graduates from the LDC status, it is also set to lose various trade privileges, including duty-free access to several export markets. This shift may erode the cost competitiveness that has so far helped our pharmaceutical products find a foothold abroad.

Still, despite these hurdles, there is reason to be optimistic. While highly regulated markets have always attracted the most attention, there are numerous unregulated and semi-regulated markets in regions like Africa, Latin America, and parts of Asia that offer immediate opportunities. These areas typically have fewer entry barriers and a strong demand for affordable, quality medicines. Accelerating the establishment of the API Industrial Park and supporting local production capabilities can significantly reduce dependency on imported raw materials, making the industry more resilient and cost-effective in the long run. With global demographics shifting and an ageing population driving the need for drugs targeting chronic illnesses and cancer, Bangladesh has a timely opportunity to develop its expertise in biosimilars and niche therapeutic areas through targeted investment in research and development.

From being heavily dependent on imports to becoming a growing exporter of essential medicines, Bangladesh's pharmaceutical story is one of resilience and reinvention. As the country enters a more competitive and complex global trade environment, the industry must prepare to meet new expectations.

Collaboration between the public and private sectors will be key in unlocking the next phase of innovation. Government incentives, policy support, and funding for research facilities, when combined with private sector efficiency and ambition, can create a powerful engine for long-term growth. As part of this preparation, the government can also explore negotiating an extension to the TRIPS transition period to allow more time for adaptation. Building frameworks for patent access, including participation in global patent pools or voluntary licensing agreements, can help maintain the affordability and availability of newer medicines. Additionally, streamlining regulatory approval processes, simplifying land acquisition, and providing tax incentives for research activities would send a strong signal to investors and innovators alike.

There is no doubt that Bangladesh's pharmaceutical industry has shown remarkable potential. But in order to sustain this momentum, we will need forward-looking policies, strong coordination across stakeholders, and a willingness to confront the industry's structural weaknesses. This is a moment to align regulatory architecture, engineering talent, research capabilities, internal compliance, and business strategy for the greater good.

From being heavily dependent on imports to becoming a growing exporter of essential medicines, Bangladesh's pharmaceutical story is one of resilience and reinvention. As the country enters a more competitive and complex global trade environment, the industry must prepare to meet new expectations. With strategic investments, collaborative thinking, and confidence in our own capabilities, there is every reason to believe that Bangladesh can continue to grow as a global provider of affordable, high-quality medicine. On the other hand, the industry needs more proactive hand-holding and policy support from the government.

Mamun Rashid, an economic analyst, is chairman at Financial Excellence Ltd and founding managing partner of PwC Bangladesh. He has played a pivotal role in establishing pharmaceutical and healthcare facilities in Bangladesh's private sector over the last 35 years.​

 

[Saif]

Pharma needs diverse financing to unlock full potential: experts

The banking sector alone cannot provide the billions of taka required as investments to reap all the pharmaceutical sector’s potentials, for which a financing mix of equity, foreign direct investment, bonds, sukuk, and others is necessary, suggested analysts..They were addressing an event

www.thedailystar.net

Pharma needs diverse financing to unlock full potential: experts

The banking sector alone cannot provide the billions of taka required as investments to reap all the pharmaceutical sector's potentials, for which a financing mix of equity, foreign direct investment, bonds, sukuk, and others is necessary, suggested analysts.

They were addressing an event titled "Capital Market: Industry Insights and Readiness for the Pharmaceutical Industry," organised by Prime Bank Investment Limited at Sheraton Dhaka on Monday.

Syed M Omar Tayub, managing director (MD) and chief executive officer (CEO) of Prime Bank Investment, said Bangladesh's pharmaceutical industry was rapidly growing, driven by strong domestic demand, policy support, and export potential.

Its annual market sales amount to roughly $3 billion, growing at around 10 percent per year and projected to exceed $9 billion by 2030, he said.

It has huge export potential, as sales abroad amount to only $205 million at present, whereas the world's pharma market is valued at $1.6 trillion, he added.

To grab the market, the industry in Bangladesh will need a lot of investment. However, solely depending on banks for financing is not viable. The interest rate is also high, said Tayub.

So, a financing mix can be the solution, including coupon bonds, zero-coupon bonds, convertible bonds, green bonds, and sukuk, he said.

However, most of the companies are going for traditional sources such as bank loans, which is raising their interest costs and worries over finance, he said.

The solution can come from Capital Connect, the investment bank's programme to engage industry leaders, access actionable insights, unlock high-potential investment access, and accelerate market readiness, said Tayub.

A poll was run among the event's participants, including finance officials from several non-listed drug companies.

Most reported that they preferred banks for meeting their financing needs, while bonds ranked second.

They also traced their lack of interest in getting listed and raising funds through issuing equity to strict regulatory compliance, dilution of ownership, costs of listing, and stock market volatility.

Officials of Prime Investment briefed them on several other investment products that could help pharmaceutical companies manage their funds efficiently.​

 

[Saif]

Pharma industry in dire need of locally produced APIs

Although the country's pharmaceutical sector is often credited -- and rightly so -- for its commendable performance over the years, one of the persistent and pressing challenges hindering its further growth is the overwhelming reliance on imported raw materials, specifically active pharmaceutical i

thefinancialexpress.com.bd

Pharma industry in dire need of locally produced APIs
Wasi Ahmed

Published :
Jun 17, 2025 23:28
Updated :
Jun 17, 2025 23:28

Although the country's pharmaceutical sector is often credited -- and rightly so -- for its commendable performance over the years, one of the persistent and pressing challenges hindering its further growth is the overwhelming reliance on imported raw materials, specifically active pharmaceutical ingredients (APIs). Despite the country's strides in medicine manufacturing, the industry's heavy dependence on foreign-sourced APIs remains a structural vulnerability that hampers both sustainability and self-reliance.

Currently, it is estimated that the pharmaceutical industry imports nearly 95 per cent of its API requirements. This translates into an import bill of approximately Tk 45 billion annually, putting considerable pressure on foreign currency reserves and leaving the entire supply chain susceptible to global market disruptions. Local producers, constrained by infrastructural limitations and lack of investment, are not in a position to meet more than 5 per cent of the industry's total API demand. This stark imbalance has long been recognised as a bottleneck in the development of a truly self-sufficient pharmaceutical industry.

Over the past several years, cutting reliance on imported APIs has been a frequent topic of discussion at both policy and industry levels. Yet, tangible progress remained limited until recently. Encouragingly, there has been a renewed drive, both from the government and private sector players, to strengthen backward linkages by boosting domestic API production. This shift in momentum reflects a growing awareness of the strategic importance of indigenous raw material sourcing, not just from an economic perspective but also from the standpoint of national health security.

One of the major initiatives in this regard is the establishment of an API Industrial Park in Munshiganj, which is being implemented as a government project. The park is envisioned as a comprehensive industrial hub with dedicated infrastructure and support services tailored to API manufacturers. Additionally, two more API parks are under development in Bagerhat and Khulna through private sector initiatives, signaling growing investor interest in this critical segment of the pharmaceutical supply chain.

Alongside infrastructural developments, a draft API policy has been prepared and is currently awaiting approval from the government. This policy aims to provide a comprehensive incentive structure, including fiscal benefits, subsidies, and streamlined regulatory processes, to attract both local and foreign investors into the API manufacturing space. If approved and implemented effectively, this policy could serve as a much-needed catalyst for transforming the sector's raw material landscape.

The overarching goal behind these initiatives is to reduce dependence on imports, ensure the smooth supply of essential inputs for drug production, and ultimately bring down production costs. Lower costs would not only make medicines more affordable for the domestic population but also enhance the competitiveness of Bangladeshi pharmaceutical products in international markets. A locally secured supply chain would significantly bolster the industry's export potential, which has been growing steadily in recent years.

It is important to recognise that sustaining a highly capital-intensive industry like pharmaceuticals requires more than just policy tweaks and infrastructural support. A reliable and cost-effective supply of raw materials is essential to maintaining the viability and profitability of the entire sector. Without local API production, manufacturers are forced to rely on volatile international markets, where prices can fluctuate dramatically, and supply chains can be disrupted by geopolitical tensions, pandemics, or trade restrictions.

A great deal of the untapped potential within the pharmaceutical sector can be attributed to this very lack of backward linkage. In fact, the absence of readily available APIs is often cited as one of the foremost limitations to the industry's desired growth. The inability to access necessary inputs locally not only increases production costs but also impedes research and development (R&D) initiatives, which are vital for innovation and quality enhancement.

The need for robust backward linkage has never been more crucial. As the pharmaceutical industry moves towards more complex formulations, biologics, and personalised medicine, the demand for high-quality APIs is set to rise. Ensuring that the country is equipped to meet this demand locally will require coordinated efforts in terms of investment, training, infrastructure development, and regulatory facilitation.

Bangladesh's pharmaceutical sector currently meets around 98 per cent of the domestic demand for medicines, a remarkable feat in itself. The industry's annual growth rate, estimated at over 24 per cent, positions it as one of the fastest-growing sectors in the country. There are currently more than 240 registered pharmaceutical companies operating in the country. Several of these firms have already begun producing APIs and a wide array of drug formulations spanning all major therapeutic categories. This means the base is already in place; what remains is the scaling up of capabilities and enhancing integration with global standards.

With these factors in mind, the industry appears well-poised to embrace cutting-edge innovations and significantly expand its export footprint. However, achieving such aspirations hinges critically on addressing the foundational issue of API availability. Once this key gap is bridged, pharmaceutical manufacturers will find themselves in a far more advantageous position to scale up production, undertake R&D initiatives, and compete globally.

Thus the need to locally produce APIs is not just a matter of economic efficiency -- it is a strategic imperative. If the current momentum is sustained through effective policy implementation, investment, and infrastructural development, the pharmaceutical sector could very well become one of the cornerstones of the country's industrial economy.​

 

[Saif]

Pharma exports more than double in seven years

Bangladesh’s pharmaceutical exports have more than doubled over the past seven years, reaching $213 million in the just-concluded fiscal year 2024-2025, thanks to the entry into fresh markets and a wave of new products.

www.thedailystar.net

Pharma exports more than double in seven years
Driven by new markets, fresh products, rising investment and skilled workforce

Bangladesh's pharmaceutical exports have more than doubled over the past seven years, reaching $213 million in the just-concluded fiscal year 2024-2025, thanks to the entry into fresh markets and a wave of new products.

However, on a year-on-year basis, the latest export figure was just 4 percent higher than the $205 million generated in the preceding fiscal year of 2023-24.

Industry insiders remain confident that the momentum would prevail as Bangladeshi pharmaceutical firms are expanding into new and emerging markets.

Seven years ago, the country used to send medicines to around 140 countries. This has now risen to 166 nations across the globe.

With continued investment, regulatory compliance, and a growing skilled workforce, the local pharmaceutical sector is poised not just to sustain but to accelerate its export growth in the years ahead, they said.

"The key reason for this growth is the introduction of new molecules and medicines, which are now being produced locally," said Zahangir Alam, chief financial officer of Square Pharmaceuticals PLC.

"This trend is likely to accelerate in the coming years," he said.

Alam informed that the new export destinations included Uzbekistan, Kazakhstan, and Kyrgyzstan, all members of the Commonwealth of Independent States (CIS) in Central Asia.

"These CIS countries are becoming significant markets for Bangladeshi medicines," he added.

He explained that regulatory procedures in many CIS nations have become more streamlined, enabling Bangladeshi pharmaceutical companies to register and launch their products faster than before.

Demand for affordable yet high-quality generic medicines is rising in these regions, creating new opportunities for Bangladeshi exporters to gain a bigger market share, added Alam.

"In addition to the CIS markets, we are also exploring potential in parts of Africa and Latin America," he said.

"Our strategy involves not just expanding geographically but also diversifying our product portfolio to include specialised therapeutic segments," he said.

Wasim Haider, manager for international marketing at Beximco Pharmaceuticals Ltd, said they have faced significant hurdles over the past three years due to volatile exchange rates of the US dollar and political uncertainties.

However, Beximco Pharmaceuticals Ltd attained a notable year-on-year export growth of around 25 percent to 30 percent last fiscal year, he said.

He also cited new partnerships in previously untapped markets as another key driver behind the growth.

Furthermore, management and staff have put in an extraordinary effort to maintain financial solvency amid industry headwinds, said Haider. "Everyone, from factory workers to head office staff, contributed, which has helped boost our business."

He expressed optimism that, despite prior setbacks, the company was now on a stronger growth trajectory for the remainder of this calendar year.

Industry analysts note that Bangladesh's pharmaceutical sector has been increasingly diversifying its product range and investing in compliance with international regulatory standards.

Such factors have helped local companies gain a stronger foothold in overseas markets despite global economic uncertainties, they said.

"We're hopeful that the next doubling will come about faster," said Arefin Ahmed, executive director (marketing) of Incepta Pharmaceuticals Ltd.

Pharmaceuticals differ from other export products like garments because drug registrations can take two to five years, he said.

Moreover, entering regulated industries is a high-stakes endeavour that requires meticulous planning, deep industry knowledge, and a robust strategy, he said.

Over the past decade, leading Bangladeshi pharmaceutical firms have invested heavily in modern factories, quality-control labs, and skilled personnel, enabling them to meet strict regulatory standards in markets such as the US, Europe, and Australia, said Ahmed.

"Ten years ago, we couldn't do what we can do today. We have modern equipment, skilled scientists and pharmacists, and the know-how to produce high-quality medicines," he said.

He also pointed out that a growing pool of pharmaceutical graduates was contributing to the sector's progress.​

 

[Saif]

Bangladesh’s next leap in pharmaceuticals

BANGLADESH’S pharmaceutical industry has long been a success story of transformation. Originating in the early 1980s as an import-dependent sector, it has evolved into a thriving hub for the production of generic medicines that reliably meet the needs of its domestic population while serving...

www.newagebd.net

FROM GENERICS TO DISCOVERY
Bangladesh’s next leap in pharmaceuticals
14 July, 2025, 00:00

Rasiqh Wadud writes how academia, industry and global partnerships can shape the country’s drug innovation future

BANGLADESH’S pharmaceutical industry has long been a success story of transformation. Originating in the early 1980s as an import-dependent sector, it has evolved into a thriving hub for the production of generic medicines that reliably meet the needs of its domestic population while serving over 100 export markets. With a current market valuation of around $3 billion and projections to exceed $6 billion by 2025, the sector has demonstrated formidable strength and resilience. But as the global generics market becomes increasingly competitive, and with expiring patents, it is time for Bangladesh to look beyond replication, and towards discovery.

Now, in 2025, Bangladesh stands at a critical crossroads. The next chapter for Bangladesh must be built on drug discovery, and both industry and academia have critical roles to play.

A moment of opportunity and urgency

BANGLADESH benefits from a unique TRIPS (Trade-Related Aspects of Intellectual Property Rights) flexibilities waiver, which permits production of patented medicines without legal repercussions until 2033. This flexibility has fuelled its success in generics. But with the clock ticking, the nation must use this grace period to move into value-added research. The transition from relying on TRIPS flexibilities to adhering to a stricter international IP regime necessitates a parallel evolution from low-value generic production to higher-value innovation in drug discovery. Investing in drug discovery opens the door to capture higher profit margins, foster technological innovation, and stimulate domestic research and development activities.

Drug discovery has historically been considered the playground of billion-dollar pharmaceutical giants. That perception no longer holds. The landscape is shifting. Artificial intelligence, machine learning and global access to specialised services have democratised many aspects of early-stage drug development. Molecule screening, lead optimisation and even virtual structure-based drug design can now be initiated without the need for building in-house wet labs from scratch. For countries like Bangladesh, this is a game-changing leveller.

Unlocking the academic engine

GLOBALLY, drug discovery is often seeded in academic laboratories. Basic research like identifying disease mechanisms, characterising biological targets or designing novel molecular scaffolds frequently originates in universities. In countries like the United States, United Kingdom and Singapore, academic institutions are often the birthplaces of new molecular discoveries. Prestigious universities such as MIT, University of Cambridge, University of Oxford and National University of Singapore have not only produced breakthrough research but also incubated biotech startups and facilitated licensing deals with global pharmaceutical firms.

Bangladesh can and should follow this model. In particular, private universities in Bangladesh are capable of playing a transformative role in this space. As someone who has served as a lecturer at a reputed private university and as a graduate of the same institution, I have directly witnessed the academic potential that exists.

Many leading discoveries around the world have begun with focused research questions and strategic collaborations. What some of the universities, public and private, can do now is begin cultivating a research culture. Although the universities may not yet have dedicated drug discovery infrastructure, this should not be seen as a barrier. Leveraging international collaboration and existing global research platforms is a practical and realistic way to begin. In fact, a gradual evolution starting with project-based partnerships and external collaborations mirrors the trajectory of many high-impact research efforts I have personally observed. Universities in Bangladesh can initiate such projects by connecting with their growing alumni network and tapping into global expertise, allowing the institutions to dip into exploratory science without immediate capital-heavy commitments.

If Bangladesh is to take charge of its own scientific future, universities must rise to the challenge, not simply watching innovation happen elsewhere, but becoming part of the process that drives it forward.

Lessons from peer economies

THE government has made some strides in incentivising pharmaceutical R&D. Tax holidays, duty exemptions for lab equipment, and infrastructure in export processing zones are welcome initiatives. But we need more targeted investment in innovation ecosystems — biotech parks, translational research centres and coordinated academia-industry networks.

Countries like India and Singapore offer instructive examples. India’s public-private biotech parks and liberalisation of IP policies in the 1990s gave rise to domestic drug discovery efforts that now yield licensed molecules for global markets. Singapore invested billions into its Biopolis complex, attracting R&D from multinational giants and creating a skilled workforce.

Vietnam and Thailand are also noteworthy. Both nations are currently in the midst of transitioning from a generics-dominated pharmaceutical model to investing in drug discovery and innovation. Vietnam, through the ministry of health’s Strategy for Pharmaceutical Industry Development to 2030, has committed to developing its domestic drug production capacity for high-tech and original medicines. The country is investing in biotechnology research, upgrading regulatory pathways and encouraging private-sector innovation through tax incentives and foreign partnerships. Thailand, similarly, has launched the Thailand Centre of Excellence for Life Sciences, aimed at fostering drug discovery, genomics and personalised medicine. Supported by both government funding and international partnerships, these efforts are positioning Thailand as an emerging hub for biomedical innovation in Southeast Asia.

Bangladesh doesn’t need to mimic these models dollar-for-dollar, but it can adapt the principles: de-risking early-stage R&D through government support, creating incentives for industry-academic partnerships and inviting its global scientific diaspora to co-develop solutions.

Why the time is now

A CONFLUENCE of factors — global patent expiries, geopolitical shifts in supply chains, the rise of AI driven drug discovery — makes 2025 the right moment for Bangladesh to act. Delaying this transition risks losing the window of opportunity to become a serious player in the global biopharmaceutical industry. Many of the country’s top pharmaceutical companies already operate facilities that are compliant with US FDA and EMA standards. This gives them the technical foundation to produce complex therapeutics.

By investing even a fraction of their capital into small, focused R&D teams, supported and guided by specialised expertise, these firms can begin to diversify. They do not need to compete with Big Pharma. Instead, by taking the first steps in drug discovery, they open pathways for future collaboration: knowledge transfer, co-development and shared innovation.

This is how innovation begins. The next decade will determine whether Bangladesh remains a manufacturer of medicines or becomes a creator of cures.

Rasiqh Wadud is principal investigator at the School of Biological Sciences, University of Cambridge. His research focuses on red blood cell physiology and drug discovery.​

 

[Saif]

Renata wins EU nod for drug exports

Renata's export horizon will expand further as it has secured approval of the European Union months after an audit by European auditors of one of its production units. In a stock exchange filing on Wednesday, the listed drug maker disclosed that its Rajendrapur production unit had received Europea

thefinancialexpress.com.bd

Renata wins EU nod for drug exports

FE REPORT
Published :
Jul 17, 2025 09:53
Updated :
Jul 17, 2025 09:53

Renata's export horizon will expand further as it has secured approval of the European Union months after an audit by European auditors of one of its production units.

In a stock exchange filing on Wednesday, the listed drug maker disclosed that its Rajendrapur production unit had received European Union Good Manufacturing Practice (EU GMP) certification following a comprehensive audit by European authorities.

With that, Renata joins a small group of Bangladeshi pharma companies - Beximco Pharma, Incepta and Square Pharmaceutials -- that have EU GMP facilities.

Company officials said the certification had opened a door to the EU countries for exports of Renata's products.

Renata had already been exporting its products to the EU markets but on a limited scale in the absence of the certification. "Now, there is scope of getting approvals for a good number of our products by EU drug administrators," said Md. Jubayer Alam, company secretary of Renata.

The EU GMP certification confirms that the facility is compliant with strict European standards in manufacturing medicines, covering everything from hygiene, production, quality control, and documentation.

It is a mandatory requirement to export drugs to EU countries, which means Renata can now start expanding exports to Europe, adding a new revenue stream and increasing foreign exchange earnings for Bangladesh.

Conforming to the EU GMP usually involves significant investments in facilities, processes, and training. It pushes a company to improve its overall operational standards.

The same unit in Rajendrapur had secured access to the UK market and received approval of the US FDA, the world health organisation and the Brazilian Health Regulatory Agency.

The EU auditors conducted the audit in February and the company received the certificate of GMP Compliance on Tuesday.

The annual export volume of Renata is around $25 million at present.

"The company's export volume will increase following our easy entry into the EU market," Mr Alam said.

The certification by the EU authorities is also accepted by the countries of Latin America.

"So, it will facilitate our exports to the markets of Latin America," Mr Alam added.

EU GMP is one of the most respected quality standards globally. It enhances Renata's credibility with global partners, investors, and regulatory authorities.

Therefore, the access to the EU may lead to new partnerships, higher stock valuations, and greater trust of institutional investors.

Meanwhile, investors appeared enthusiastic about bidding up shares of Renata as the stock price moved up 0.39 per cent to Tk 490.20 per share by the end of the trading session on the Dhaka Stock Exchange on Wednesday.​

 

[Saif]

Heavy import reliance leaves pharma industry vulnerable

Despite success, Bangladesh's pharma industry hinges on imported raw materials

www.thedailystar.net

Heavy import reliance leaves pharma industry vulnerable
Drugmakers call for setting API production as a strategic priority

Local medicine manufacturers can meet almost the entire domestic demand and export to as many as 160 countries, given that supplies of raw materials come from China and India.

But without these imported ingredients, the 45-year-old pharmaceutical industry cannot produce even something as basic as Esomeprazole—a commonly used tablet to treat heartburn.

Industry insiders say it is high time Bangladesh invested in the development of active pharmaceutical ingredients (APIs) to reduce its annual import bill of roughly $1.3 billion, improve resilience, and ensure long-term growth.

Meanwhile, health economists say delays in building API capacity could lead to patent-related issues. Bangladesh currently enjoys a patent waiver as a least developed country, but that exemption will end when the country graduates from the LDC club in November next year.

According to local drugmakers, around 85 percent of drug ingredients are still imported, mainly from China and India. Efforts to manufacture these locally are obstructed by gaps in the production ecosystem, regulatory hurdles, a shortage of skilled workforce, and limited access to finance.

To resolve these issues, they have called for an API policy to support local initiatives.

At least six domestic firms, including Square, Beximco, ACME and Incepta, currently produce 40 types of APIs worth Tk 2,500 crore.

Rabbur Reza, chief operating officer of Beximco Pharmaceuticals, said, "Bangladesh must stop treating API production as the responsibility of individual companies and instead prioritise it as a national strategic objective."

"Even when we try to manufacture APIs locally, there are approval delays of eight to nine months just to import the ingredients, as the process requires 18 separate clearances," said Reza.

"By the time we receive the go-ahead, global prices have shifted or competitors have beaten us to market," he said.

He said API byproducts from one industry feed another in China. "That is how they have built a cost-effective, integrated model. We need to replicate that thinking here."

To support the local pharmaceutical industry, the government has set up an API industrial park in the Gajaria area of Munshiganj. While land has been acquired and infrastructure developed, the site does not have a gas connection, making it an unattractive location for API ventures.

The Beximco pharma executive said that without coordination between agencies and a single-window clearance system, the API park could become another underused industrial zone.

"We are ready to invest, but policy must support viability," he commented.

Abdul Muktadir, president of the Bangladesh Association of Pharmaceutical Industries (Bapi), said, "We have made great strides in pharmaceutical formulations, but without local API capacity, our base remains fragile."

Referring to the API park, Muktadir said no chemical plant can run on LPG.

Besides, he said that access to affordable finance is another major challenge for API manufacturing.

According to the Bapi president, with bank interest rates hovering around 14 percent to 15 percent compared to 3 to 5 percent in India and China, API ventures in Bangladesh face unsustainable capital costs.

Muktadir also pointed to a shortage of local expertise in process chemistry and chemical engineering, both prerequisites for API manufacturing.

He said some progress has been made through training and hiring foreign consultants, but scaling up will require long-term policy backing.

The post-pandemic shift in global supply chains has opened a window of opportunity, as Western countries seek alternatives to Chinese API suppliers.

"This is our window," Muktadir said. "If we move fast, Bangladesh can become a credible second source."

The Bapi president urged the government to promote import substitution and export of APIs, and to strengthen public-private collaboration in research and development.

"We don't need subsidies," Muktadir said. "We need basic support such as energy and finance. The government should also recognise that API is a national infrastructure."

Syed Abdul Hamid, professor at the Institute of Health Economics at Dhaka University, said that once Bangladesh loses its LDC patent waiver, the cost and complexity of producing patented APIs will rise manyfold.

"Local firms currently depend on flexibility to produce or import APIs without patent barriers. After the graduation, licensing will be mandatory, making it harder and costlier to produce newer, high-priority drugs, especially for drug-resistant or emerging diseases."

Prof Hamid commented that Bangladesh's limited API production capacity leaves it vulnerable to supply shocks and price fluctuations in the global market.

"Without investment in domestic production and technology transfer, access to essential medicines could become unsustainable," he said.

Monjurul Alam Monju, chief executive officer of Beacon Medicare, said Bangladesh cannot feasibly produce all types of APIs domestically, especially those with limited demand.

He said, "API manufacturing is a long-term investment, especially for innovative molecules like cancer drugs. India and China can afford this due to their massive internal markets. Without access to global markets, such investments are not viable here."

However, Monju said some API products serving the local pharmaceutical industry could be produced profitably with the right policy support.

He also raised concerns about the high cost of setting up effluent treatment plants (ETPs), a mandatory requirement for API manufacturing.

"ETPs require a huge investment. Without government support, it is extremely difficult for local firms to comply," he said.

"If the government provides subsidies for R&D and environmental compliance, API manufacturing can become feasible," he added.​

 

[Saif]

Pharma must collaborate with academia to thrive in post-LDC era

Bangladeshi pharmaceuticals industry will face challenges after LDC graduation.

www.thedailystar.net

Pharma must collaborate with academia to thrive in post-LDC era

VISUAL: MONOROM POLOK

The pharmaceutical sector in Bangladesh stands at a turning point. From a heavily import-dependent industry in the 1980s, it now meets 98 percent of domestic medicine needs and exports to over 150 countries. In FY2024-25, export earnings from this sector reached $213 million. Its success has been largely driven by the Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver under the World Trade Organization (WTO), which allowed the production of generic versions of patented drugs.

However, with Bangladesh set to graduate from the Least Developed Country (LDC) category by November 2026, the TRIPS flexibilities and other international exemptions are set to come to an end. This shift could significantly limit local production of patented medicines, raise drug prices—especially for newer treatments—and reduce export potential. Public health programmes that rely on low-cost generics may come under budgetary strain. Meanwhile, the domestic pharmaceutical industry will need to meet stricter international regulatory standards like those of the US Food and Drug Administration, European Medicines Agency and World Health Organization-Good Manufacturing Practices (WHO-GMP), and compete in a more complex global market. Gaps in biotechnology, active pharmaceutical ingredient (API) production, and clinical trial infrastructure will further intensify these challenges.

To navigate the post-LDC era successfully, Bangladesh must transition from a volume-driven, generics-dominated model to one centred on innovation, quality, and global integration. This can be achieved by enhancing collaboration between industry and academia. Academic research in the country has traditionally remained disconnected from industry needs. Underfunded labs, outdated infrastructure, and limited engagement from the private sector have weakened universities' role as innovation hubs. The disconnect is evident in pharmaceutical education and research. Collaboration is hampered by theoretical research orientations, outdated curricula, and the absence of mechanisms like technology transfer offices. Applied research funding is scarce, and expertise in emerging fields like biotechnology, regulatory science, and clinical trials is limited.

Meanwhile, firms often avoid collaboration, focusing on short-term gains rather than long-term innovation. Many are reluctant to invest in joint research, curriculum development or workforce training. The lack of structured platforms for engagement, along with concerns over intellectual property and limited demand for high-end scientific expertise, further weakens cooperation.

A national strategy to bridge these divides is needed, along with investment in joint research initiatives that can drive pharmaceutical innovation and resilience.

Tertiary institutions, particularly departments of pharmacy, biochemistry and molecular biology, genetic engineering and biotechnology, microbiology, and health economics institutes, can partner with pharmaceutical companies to develop biosimilars and new drug formulations. Industry-supported clinical trials hosted in academic settings can reduce dependency on foreign labs, lower research and development (R&D) costs, and speed up product development. Faculty members should be incentivised to pursue industry-relevant research through consultancy, collaborative grants, and performance-based rewards.

Workforce readiness is another pressing issue. Many employers think graduates lack the skills they are looking for. University curricula should be redesigned in consultation with pharmaceutical firms to include regulatory science, bioequivalence studies, GMP compliance, data analytics, and advanced manufacturing practices. Internship and co-op programmes can offer students real-world industry exposure, while faculty exchanges with industry can help keep teaching aligned with evolving demands.

Creating centres of excellence (CoEs) focused on pharmaceutical innovation is another strategic option. Drawing from India's National Institute of Pharmaceutical Education and Research (NIPER) model, Bangladesh can establish CoEs dedicated to biotechnology, API manufacturing, clinical research, and regulatory affairs. These centres can help reduce reliance on imported APIs and strengthen the country's capacity for global-standard clinical trials. Public-private partnerships involving government, academia and industry could sustain these centres financially and institutionally.

The clinical trial infrastructure in Bangladesh remains significantly underdeveloped. Existing clinical research organisations (CROs) struggle with ethical approval delays, a lack of qualified principal investigators and biostatisticians, and difficulty recruiting trial volunteers. These shortcomings force companies to outsource trials abroad, increasing costs and delaying market entry. By investing in accredited research facilities and university-based ethical review boards, Bangladesh can localise clinical research. Additionally, industry-funded training programmes in trial design, regulatory compliance, and data management can strengthen research capacity.

Academia must also play a central role in evidence-based policymaking. As Bangladesh adapts to post-LDC trade and intellectual property (IP) requirements, academic institutions can assess the economic impacts of patent compliance, propose sustainable pricing models, and help design national strategies. Establishing formal "policy labs" that bring together academics, industry leaders, and regulators could facilitate coordinated, evidence-informed decision-making. In international forums, academic voices can also advocate for equitable IP policies and targeted transition support for countries like Bangladesh.

To realise these goals, structural reforms are urgently needed. Bureaucratic bottlenecks, mutual mistrust, and misaligned incentives must be replaced with a supportive national framework for industry-academia partnership. This framework should include tax incentives, R&D grants, and co-financing mechanisms for joint initiatives. Universities should be empowered to commercialise intellectual property and engage in contract research. Performance metrics for academic institutions must evolve to reward patents, industry impact, and product innovation alongside traditional publications. Clear policies for IP ownership and benefit-sharing can also help foster mutual trust and long-term cooperation.

If policymakers, academic leaders, and industry stakeholders act with urgency and coordination, Bangladesh can build on its pharmaceutical legacy and emerge as a global leader in affordable, innovative healthcare solutions. The core foundations are already in place; what's needed now is the shared commitment to build on them strategically.

Dr Syed Abdul Hamid is professor of Institute of Health Economics at the University of Dhaka, convener of Alliance for Health Reforms Bangladesh (AHRB), and initiator of the Network for Healthcare Excellence (NHE).​

 

[Saif]

Making essential drugs affordable

The government's decision to expand the list of essential medicines to 295 and bring all of them under price regulation comes at a time when the cost of basic treatment is increasingly outpacing the ability of ordinary families to pay. In this context, regulating prices offers a practical means of

thefinancialexpress.com.bd

Making essential drugs affordable


Published :
Jan 11, 2026 00:12
Updated :
Jan 11, 2026 00:12

The government's decision to expand the list of essential medicines to 295 and bring all of them under price regulation comes at a time when the cost of basic treatment is increasingly outpacing the ability of ordinary families to pay. In this context, regulating prices offers a practical means of restoring fairness and predictability to an increasingly burdensome market. Essential medicines are not ordinary consumer goods. They are, by definition, the treatments that meet the vast majority of common health needs, which means they determine whether families can manage illness or are pushed into debt and distress. Over the past two to three years, the prices of many commonly used drugs have risen by 60 to 70 per cent, a pace far above income growth for most households. When lifesaving medicines become unaffordable, their very designation as essential loses meaning. Faced with this reality, the state carries both a moral and economic responsibility to ensure that the most widely used treatments remain affordable for ordinary citizens, especially given the high out-of-pocket health spending and limited insurance coverage.

At the same time, price regulation must account for the realities of pharmaceutical production. Bangladesh's drug manufacturers rely heavily on imported raw materials, particularly active pharmaceutical ingredients, and any sharp depreciation of the taka can sharply raise production costs. Even before the government's announcement, the Bangladesh Association of Pharmaceutical Industries (BAPI) had cautioned that rigid price controls could create difficulties for manufacturers amid rising import costs and currency fluctuations. An inflexible pricing formula could push some companies, particularly smaller firms, into financial losses, thereby threatening the continuity of supply. If manufacturers cannot cover costs while earning a reasonable margin, shortages may follow, harming patients as much as high prices would. Rational price setting, therefore, should be based on current data regarding input costs, exchange rates, compliance expenses and reasonable margins, rather than on arbitrary ceilings. The government's plan to phase in the new prices over four years appears to address these concerns pragmatically, giving companies time to adjust while keeping essential medicines affordable. Nevertheless, the fundamental principle of regulating these core lifesaving drugs remains non-negotiable, as leaving them entirely to market forces would perpetuate the very inequities that made intervention necessary.

What critically weakens the opposition to price regulation is the industry's own recent pattern of commercial behaviour. Evidence indicates that many pharmaceutical companies have chosen to prioritise production and marketing of non-essential drugs where prices can be hiked at will while simultaneously neglecting or underproducing essential medicines most widely needed by the public. Against this backdrop, claims that controlling prices on fewer than 300 essential drugs would threaten the viability of some companies are unconvincing. BAPI itself has noted that its members supply roughly 98 per cent of domestic demand, underscoring their significant market presence. This commanding position is difficult to reconcile with claims that regulating a limited, defined basket of essential drugs would destabilise the entire sector. Price control for these core medicines is a reasonable expectation against the backdrop of the broad commercial freedom companies otherwise enjoy, and it remains an essential measure for safeguarding public health.

Longer term, the sustainability of pharmaceutical sector can be strengthened by expanding domestic production of active pharmaceutical ingredients, thus reducing reliance on imports. This is an area where the government should actively support industry stakeholders through targeted incentives and coherent policy. Concurrently, stronger regulatory enforcement of quality standards will also protect reputable manufacturers from being undercut by substandard or illicit products. For now, however, a rational price fixation model mindful of cost inputs and a fair profit margin is the pragmatic path forward.​