[🇧🇩] Pharmaceutical and Chemical Industry in Bangladesh

[Saif]

Drug makers secure growth in H1 on low finance costs, higher sales

Leading drug manufacturers maintained revenue and profit growth year-on-year in the first half of FY25, supported by higher sales amid stability in the forex market. However, efficient management, strong financial positions, and lower finance expenses helped Square Pharmaceuticals and Beximco Ph

thefinancialexpress.com.bd

Drug makers secure growth in H1 on low finance costs, higher sales
Babul Barman
Published :
Feb 10, 2025 00:46
Updated :
Feb 10, 2025 00:46

Leading drug manufacturers maintained revenue and profit growth year-on-year in the first half of FY25, supported by higher sales amid stability in the forex market.

However, efficient management, strong financial positions, and lower finance expenses helped Square Pharmaceuticals and Beximco Pharmaceuticals, among the drug makers, secure a double-digit growth in an adverse business climate.

"Rising income levels and increased health awareness have led to higher spending on medicines," said Akramul Alam, head of research at Royal Capital.

Despite economic headwinds, such as high inflation, currency depreciation, and rising living costs, Bangladesh's pharmaceutical sector has thrived due to strong local demand, self-sufficiency, export growth, cost efficiency, and favorable government policies.

"This resilience allows leading pharmaceutical companies to sustain high revenue and profit growth," said Mr Alam.

The collective revenue of seven major drug manufacturers reached Tk 116 billion in July-December of FY25, a 9.43 per cent increase from the year before.

Their combined profit also rose 6.40 per cent year-on-year to Tk 19.87 billion during the period under review, according to financial statements compiled by The Financial Express.

Square Pharmaceuticals, the largest drug maker in the country, posted a record half-yearly profit of Tk 12.70 billion for the six months through December last year, a 13 per cent year-on-year growth.

Its sales revenue grew 6 per cent year-on-year to Tk 37.72 billion in July-December.

Square Pharmaceuticals attributed its growth to several key factors, including lower finance costs, a boost to domestic demand for healthcare products, and rising exports.

Muhammad Zahangir Alam, chief financial officer (CFO) of Square Pharma, said the drug maker's finance cost had remained zero for the last five years for its zero borrowings.

"Apart from revenue income, our other incomes always support our profit growth," he said.

Square Pharma is strategically expanding its presence in the global markets and diversifying its operations through subsidiaries and associate companies.

Beximco Pharma, another major drug manufacturer, posted an 18 per cent growth in profit to Tk 3.54 billion, supported by higher sales amid growing local demand and export growth.

The company launched new products and expanded international presence, said Iqbal Ahmed, managing director of the company, in a filing on the London Stock Exchange.

Unlike other industries affected by inflation and currency devaluation, the pharmaceutical sector enjoys inelastic demand as medicines are essential regardless of economic conditions, said Mr Alam, of Royal Capital, said.

With a population of over 170 million, Bangladesh has a large and growing healthcare market. The healthcare expenditure per capita was just $30 in 2014, which jumped to more than $58 in 2022.

However, the companies, which could not contain finance costs amid soaring interest rates, were unable to earn expected profits despite higher revenue. In most cases, profitability is squeezed by exorbitant finance expenses.

For example, Renata's profit plunged 39 per cent year-on-year in the first half of FY25 despite 12 per cent revenue growth. Its net finance costs shot up 40 per cent to Tk 792 million in July-December last year.

Renata's short-term and long-term borrowings rose to Tk 11.79 billion in the six months through December last year, from Tk 10.83 billion in June 2024.

Bangladesh exports pharmaceuticals to over 150 countries, including the USA, UK, and EU markets.

Drug exports jumped more than 12 per cent year on-year to $114 million in July-December last year as local drug makers entered new markets and received larger orders.

The industry benefits from LDC (Least Developed Country) privileges, allowing it to produce and export generic drugs without strict patent restrictions, which will continue until 2033, according to Mr Alam.

"High-quality but low-cost production makes Bangladeshi pharmaceutical companies competitive in global markets as well," he added.

The global pharmaceutical industry is expected to grow by 5.80 per cent in the next five years through 2028, while the local industry is expected to grow more than 15 per cent during the time, according to Statista, a global data and business intelligence platform.

The industry contributes more than 1.83 per cent to the country's GDP, according to the Director General of Drug Administration (DGDA). About 80 per cent of the drugs sold are generic and the rest are patented drugs.

Currently, local companies meet 98 per cent of the domestic demand with a market size of Tk 266 billion.​

 

[Bilal9]

Samuda Chemical Complex Limited (SCCL) is a private limited company owned by Mohammad Abul Kalam, Farzana Afroze, Mohammad Mustafa Haider, Rizwana Afroze. SCCL was incorporated in 2006 in Bangladesh under the Companies Act, 1994 and has an authorized capital of BDT 5,000,000,000. It is the largest caustic soda and hydrogen peroxide plant at present in Bangladesh.

[Environment-Friendly Factory]

Samuda Chemical Complex Limited manufactures high quality and competitively priced products i.e. Hydrogen peroxide, Caustic Soda, Liquid Chlorine, Hydrochloric acid, Sodium Hypochlorite, calcium Carbonate, Filler compound and Chlorinated Paraffin Wax, which deliver outstanding value to its customers. The Company’s products and production processes are benchmarked with the best of global touchstones and meet the most rigorous international specifications.

[Dhaka Plant @ Munshiganj Beside Meghna River]

SCCL’s Products go into numerous end-use applications in a variety of industries: paper and pulp, textiles, pharmaceuticals, food, tanning, water treatment, plastics, footwear, Detergent and petroleum refining. Leaving its mark on the local market, the company also exports its products to other ountries in South Asia.

[Chattrogram Plant @Alamin Baria]

Since its inception as the first company in Bangladesh to produce Hydrogen peroxide upto 70% concentration, SCCL has been continuously raising the bar in technological competence and gaining recognition as an innovator. Overall production capacity of Samuda Chemical Complex Limited is 650-50 MT per day.


The company has an enduring commitment to protecting and enhancing the environment, serving and improving the communities in which it functions and adhering to the highest ethical standards of corporate behavior.

 

[Saif]

Pharma industry has a bright future

Foreign participants at the 16th Asia Pharma Expo foresee a bright future for Bangladesh’s pharmaceutical industry, given its continuous product development and expanding global footprint.

www.thedailystar.net

Pharma industry has a bright future
Foreign participants say at Asia Pharma Expo

Foreign participants at the 16th Asia Pharma Expo foresee a bright future for Bangladesh's pharmaceutical industry, given its continuous product development and expanding global footprint.

"Bangladesh's pharmaceutical sector has shown really impressive development. The country manufactures medicines of global standard and has developed a highly skilled workforce," said Lashimikanth Enaganti, assistant general manager of Smilax Laboratories Limited, India.

He was speaking to The Daily Star at the venue of the 16th Asia Pharma Expo and Asia Lab Expo, organised by the Bangladesh Association of Pharmaceutical Industries at the Bangladesh-China Friendship Exhibition Centre in Purbachal.

Enaganti praised Bangladesh's progress, highlighting its high-quality medicine production and skilled workforce. His company, which produces 60 types of active pharmaceutical ingredients (APIs), exports to 10 leading Bangladeshi pharmaceutical firms. He sees this growth as mutually beneficial for both countries.

Deepak Shah, director at Mumbai-based Titan Laboratories Pvt Ltd, echoed this observation. His company, a supplier of 20 types of APIs, has been exporting to Bangladesh for over two decades and has witnessed the sector's significant progress.

"Our export volume to Bangladesh is increasing," he added.

Monjurul Alam, CEO of Beacon Medicare Limited, said that Bangladesh imports around $1.2 billion worth of APIs annually. He emphasised that events like the Asia Pharma Expo help local companies source new ingredients and advanced machinery, supporting industry expansion.

International suppliers have also noted the sector's development. Klaus N Moller, head of sales and service at Germany's Process Technology Pharma, has been supplying pharmaceutical equipment to Bangladesh for 24 years. Initially providing small-scale equipment, his company's sales grew alongside the industry's expansion.

Moller also mentioned that his company has set up a factory for commissioning.

Halimuzzaman, managing director of Healthcare Pharmaceuticals, noted that Bangladesh imports approximately $500 million worth of pharmaceutical machinery, primarily from Europe, to ensure quality. He emphasised the importance of the expo in connecting local manufacturers with cutting-edge technology.

The event was inaugurated by Zakia Sultana, senior secretary of the Ministry of Industries. She underscored Bangladesh's ability to meet 98 percent of its pharmaceutical demand through local production while exporting to 157 countries.

However, she acknowledged the challenge of API import dependence. To address this, the government has established an API Industrial Park in Gazaria, Munshiganj, with the aim of boosting local API production, reducing import reliance, and cutting costs.

"With 27 pharmaceutical companies allotted plots, the park is expected to enhance research, attract foreign investment, and prepare the industry for Bangladesh's LDC graduation in 2026," Sultana said.

She encouraged stakeholders to capitalise on these opportunities, pointing out that capturing even 1 percent of the $400 billion global generic drug market could generate $4 billion in export revenue.

Md Shameem Haidar, director general of the Directorate General of Drug Administration, highlighted the pharmaceutical sector's contribution as the second-largest revenue generator for the government.

Initially focused on domestic demand, the industry now exports to 160 countries, including highly regulated markets such as the US, UK, Canada, Australia, and the EU.

He noted that leading Bangladeshi firms have obtained major Good Manufacturing Practice (GMP) accreditations, including US FDA certification. Additionally, Bangladesh's National Drug Control Laboratory (NCL) is progressing toward achieving WHO Maturity Level 3 recognition.

Haidar emphasised the expo's role in fostering collaboration, innovation, and technological advancements in pharmaceutical manufacturing and research.

Md Saidur Rahman, secretary to the Health Services Division, credited local pharmaceutical companies for making medicines affordable and ensuring quality healthcare. He acknowledged their contributions to Bangladesh's health sector through the production of world-class medicines.

Speaking at the event, Abdul Muktadir, president of BAPI, expressed concern over the ongoing gas crisis, saying it affects the cost-effectiveness of pharmaceutical products.

This year's expo is being participated in by 800 companies from 32 countries, including the US, China, UK, Germany, Malaysia, India, Thailand, Italy, Japan, Switzerland, Taiwan, and Ireland.

The event showcases advancements in pharmaceutical processing and packaging, biotech lab equipment, API manufacturing, and contract pharmaceutical manufacturing.

By bringing together domestic and international entrepreneurs, the expo provides valuable insights into the latest pharmaceutical technologies, equipment, and raw materials.

The three-day Asia Pharma Expo will conclude on February 14, remaining open daily from 10:00am to 6:00pm.

With Bangladesh already fulfilling 98 percent of its domestic pharmaceutical needs before exporting to 157 countries, the country's role in the global pharma industry continues to strengthen.​

 

[Saif]

Curbing drug companies' sway on doctors

The healthcare sector of the country is increasingly plagued by unethical practices, making regulatory intervention a formidable challenge. Among these concerns, the growing nexus between pharmaceutical companies and practising physicians has become particularly alarming. While drug promotion throu

thefinancialexpress.com.bd

Curbing drug companies' sway on doctors
Published :
Feb 28, 2025 00:07
Updated :
Feb 28, 2025 00:07

The healthcare sector of the country is increasingly plagued by unethical practices, making regulatory intervention a formidable challenge. Among these concerns, the growing nexus between pharmaceutical companies and practising physicians has become particularly alarming. While drug promotion through medical representatives is not a new phenomenon, its character has significantly changed. Previously, pharmaceutical representatives primarily provided doctors with sample medicines and relevant information on pharmacological composition, potential side effects, and overall efficacy. However, recent reports suggest that this practice has escalated to an unethical level, where pharmaceutical companies wield substantial influence over doctors' discretion to prescribe medicines.

It is widely reported that drug companies frequently influence medical prescriptions by offering incentives to doctors, raising serious ethical and medical concerns that largely remain unchecked. Sales representatives from these companies are often seen waiting outside clinics and hospitals, eager to interact with doctors. In some cases, they go as far as to monitor prescriptions by taking screenshots with smartphones as patients exit medical facilities, ensuring that their drugs are being promoted. More troubling is the allegation that some doctors prescribe unnecessary medications that have little or no relevance to the patient's actual condition. This practice not only exploits patients financially but also raises significant health risks by exposing them to unnecessary side effects and potential complications.

The deeper issue is that many doctors acknowledge this malpractice but remain reluctant to speak publicly against it. Some admit that the practice has become deeply ingrained in the medical community, where peer pressure and the fear of professional isolation discourage opposition. On the other hand, pharmaceutical marketing professionals justify their promotional strategies by citing industry pressures and competition. This commercialised approach to medicine undermines the fundamental ethics of healthcare.

Despite growing awareness, the undue influence of pharmaceutical companies on physicians remains pervasive. Addressing this issue requires a combination of stricter regulations, ethical enforcement, and systemic reforms. Experts suggest that one potential solution is to promote the prescription of generic drugs over branded ones, as this would reduce the incentives tied to many pharma companies. Additionally, updating and strictly implementing the country's drug policy is essential to regulate interactions between pharmaceutical companies and healthcare providers. Without decisive actions, the integrity of the healthcare system will continue to be compromised, leaving patients vulnerable to commercial exploitation rather than allowing them to receive the genuine medical care they deserve. Moreover, the role of regulatory bodies and professional organisations must be strengthened to curb these unethical practices effectively. Medical associations should take a firm stance against such influences and encourage doctors to adhere to ethical guidelines when prescribing medication. Public awareness campaigns can also play a crucial role in educating patients about their rights and the dangers of unnecessary prescriptions. If patients are better informed, they can question and verify the necessity of prescribed medicines, reducing the blind dependence on prescriptions influenced by pharmaceutical companies. Transparency in the healthcare sector, supported by government oversight, is vital for ensuring that medical decisions are driven by patient needs rather than commercial interests.​

 

[Saif]

Govt moves to encourage cancer drugs making

The tax authority has reduced the tax at source on the import of raw materials for the manufacture of cancer-related drugs, a development that is expected to reduce production costs and prices.

www.thedailystar.net

Govt moves to encourage cancer drugs making

The tax authority has reduced the tax at source on the import of raw materials for the manufacture of cancer-related drugs, a development that is expected to reduce production costs and prices.

In a notification issued on Sunday, the National Board of Revenue (NBR) said it would collect 2 percent tax at source on the import of the ingredients of oncology medicines, down from 5 percent.

A senior official of the tax administration said they slashed the tax based on recommendations from the health ministry.

"This will be helpful for oncology product manufacturers and end users, as production costs will decrease, making the products more affordable," said Aminul Islam Khan, chairman and managing director of Ziska Pharmaceuticals Ltd.

This will be helpful for oncology product manufacturers and end users, as production costs will decrease, said sector people

The NBR's move comes at a time when the prevalence of cancer is growing in Bangladesh, and a number of pharmaceutical companies are manufacturing oncology products for both domestic and export markets.

At present, the cancer prevalence in the country is 106 cases per 100,000 population, with the prevalence being higher among males.

In Bangladesh, cancer is responsible for 11.9 percent of all deaths annually, according to a new study by the Bangabandhu Sheikh Mujib Medical University last month.

The study revealed that 52.9 new cases are reported per 100,000 people every year.

Khan said the price of oncology products in Bangladesh is lower than in any other country because the nation can produce generic versions of medicines without patent restrictions.

For this reason, cancer patients from different countries seek Bangladeshi oncology products at a lower cost, he added.

Oncology products made in Bangladesh are exported to advanced countries, including Europe and Australia, due to competitive prices and high quality, he said.​

 

[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

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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

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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.

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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.

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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.​

 

[Saif]

API Park: The pharmaceutical lifeline still out of reach

On a quiet December 11 afternoon, entering the API (active pharmaceuticals ingredients) Industrial Park in Gajaria upazila of Munshiganj, located about 50 kilometres from Dhaka city along the Dhaka-Chattogram Highway, felt oddly nostalgic, like stepping into a forgotten picnic spot.

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API Park: The pharmaceutical lifeline still out of reach
The project, approved in 2008, was meant to anchor the industry’s next phase of growth. Nearly two decades later, the site remains largely idle.

By Jagaran Chakma

A view of the API Industrial Park in Gajaria, Munshiganj, where neatly paved roads and utility corridors sit surrounded by overgrown jungle. The 200-acre site remains largely idle, with most allocated plots showing no signs of industrial activity. Photo: Rashed Shumon

On a quiet December 11 afternoon, entering the API (active pharmaceuticals ingredients) Industrial Park in Gajaria upazila of Munshiganj, located about 50 kilometres from Dhaka city along the Dhaka-Chattogram Highway, felt oddly nostalgic, like stepping into a forgotten picnic spot.

Neatly paved roads lined with mango trees led us in, but the illusion quickly faded.

Despite 26 plots being allocated to pharmaceutical companies, only a handful of buildings stood. The rest? Overgrown jungle. Most plots remain untouched, with minimal signs of construction or industrial activity. A few scattered workers could be seen, but the park was eerily silent – far from the hub of pharmaceutical innovation it was meant to be.

For the companies who poured money into the park hoping for a brighter future, the delay has only brought frustration.

“I invested in good faith. Now I’m under serious financial pressure,” said Md Halimuzzaman, managing director of Healthcare Formulations Ltd, which invested nearly Tk 500 crore in the park and is now having to pay hefty loan instalments of Tk 20 lakh per day.

The vision behind the park was clear: reduce Bangladesh’s dependency on imported raw materials by fostering local production of API – the raw materials needed to make medicines. But nearly two decades since the project was approved, progress remains minimal. While land development and roads are largely complete, basic utilities like gas are still missing.

An aerial view of the park’s infrastructure, featuring the Tk 80 crore central effluent treatment plant. Designed to handle hazardous chemical waste for dozens of factories, the facility remains unused and deteriorating.

WHY API AND THE PARK MATTER

Bangladesh’s pharmaceutical industry, which now meets almost all domestic demand for finished medicines and exports to more than 150 countries, has long carried a structural weakness: low local production of APIs.

Currently, around 85 percent of APIs are imported, mainly from India and China.

For years, trade preferences and intellectual property flexibilities under LDC status softened the risks of import dependence. That protection is ending as Bangladesh graduates from least developed country (LDC) status later this year, which could fundamentally alter the cost structure and competitiveness of its pharmaceutical industry.

Bangladeshi firms have invested heavily in modern formulation plants, international compliance, and complex dosage forms over the past two decades.

Yet formulation alone does not ensure resilience. APIs account for a significant share of production costs. Import reliance exposes manufacturers to foreign exchange volatility, supply disruptions, and rising global prices.

After LDC graduation, local firms will also no longer freely produce patented medicines without licensing under TRIPS (Trade-Related Aspects of Intellectual Property Rights). This will increase costs and reduce margins, making domestic API production more critical than ever.

The state recognised the vulnerability early.

In 2008, the government approved a dedicated API Industrial Park in Gajaria, Munshiganj, to reduce import dependence and anchor backward integration. Nearly eighteen years later, the park has yet to come alive.

The API Park, spanning 200 acres, was designed to host 42 manufacturing plots with shared infrastructure: internal roads, drainage, a high-capacity electricity substation, and a central effluent treatment plant (CETP). Clustering API producers in one zone was intended to lower entry barriers, ensure environmental compliance, and make backward integration commercially viable.

More than two dozen pharmaceutical companies, including major players like Square, Beximco, Incepta, Acme, and Ibn Sina, applied for plots. Several began investing soon after allocation, borrowing from banks to construct factories and install equipment.

Despite the high ambition, the park failed to deliver. It is laid out with wide internal roads, boundary fencing and utility corridors, but most of the land remains undeveloped. Large plots stretch uninterrupted for hundreds of metres, covered in shrubs and tall grass. Power lines run along empty roads that lead nowhere.

Only a handful of buildings break the uniformity of the terrain, underscoring how little industrial activity has taken root nearly two decades after the project’s approval.

The most prominent structure in the park is the CETP, built at a cost of around Tk 80 crore. Environmental compliance is mandatory for API production, which generates hazardous chemical waste. The plant was designed to serve all factories in the park, reducing individual compliance costs and ensuring regulatory oversight.

The facility has never been used. With no factories operating, it sits idle, deteriorating in the open.

Vines grow over rusting tanks at the API Industrial Park, a symbol of the stagnation facing the project.

NO GAS, NO PRODUCTION

The paramount failure for the park is not having access to gas, the one utility without which API production cannot function sustainably. API manufacturing is energy- and steam-intensive. Natural gas is essential for generating steam used in chemical synthesis, distillation and purification processes. Without gas, production costs rise four to five times more.

Healthcare Formulations is among the companies most affected by the delay.

The factory has been fully constructed and equipped. But production is yet to begin due to lack of necessary utilities.

“We invested based on the expectation that utilities would be provided,” said Halimuzzaman. The company planned to start by producing 20 API molecules and add at least four new formulations every year.

Operations have not begun because there is no gas connection.

Running the factory entirely on electricity, Halimuzzaman said, is not technically feasible and would be prohibitively expensive.

Other companies face similar constraints. Several factories are partially built or fully ready but remain idle due to the lack of utilities.

Abdul Muktadir, chairman and managing director of Incepta Pharmaceuticals, said Bangladesh’s pharmaceutical growth has been real but incomplete. “We have done well in formulation, but API remains our Achilles’ heel,” he said.

“Local production is still very limited compared to national demand.”

Bangladesh currently manufactures only 10 to 15 APIs domestically, out of around 200 considered essential. Incepta produces four and is developing more.

According to Muktadir, early attempts at API production in the 1990s focused on basic compounds such as paracetamol and ampicillin but failed to scale due to low demand and shortages of skilled manpower.

A shift began after 2010, as Bangladeshi firms entered regulated export markets and saw the strategic value of backward integration. Incepta invested heavily in scientific capacity, establishing a dedicated API research and development division in 2011 that now employs more than 100 scientists.

But scaling up small-molecule API production remains constrained by energy availability. “API manufacturing is steam-intensive,” Muktadir said. “Without gas, using diesel increases costs four to five times. You cannot compete globally under those conditions.”

He said the API Park was intended to resolve this bottleneck. “Instead, what we have is land and roads, but no gas, no steam and no functioning ecosystem.”

THE OTHER CONUNDRUMS

The timing of this failure is increasingly consequential. Bangladesh’s graduation from LDC status will end the TRIPS waiver that allows local companies to produce patented medicines without licensing.

Export incentives are already being reduced, from 10 percent to 5 percent this year, with further cuts expected.

Shawkat Haider, executive director of Beximco Pharmaceuticals, said these changes will place new pressure on the industry.

“After graduation, we won’t be able to make new molecules freely, and rising API prices will increase medicine costs,” he said.

Bangladesh’s dependence on imported APIs limits its ability to absorb these shocks. “The API Park was meant to reduce this dependence.”

Some industry figures argue that Bangladesh should adopt a more selective approach to API production.

Monjurul Alam Monju, former chief executive officer of Beacon Medicare, said producing every API domestically is unrealistic, particularly for specialised treatments such as cancer, where domestic demand is limited.

“Developing APIs requires heavy investment and long-term commitment,” he said. “Countries like India and China can do this because of their large markets.”

Instead, Monju suggested focusing on a limited range of APIs with consistent local demand, supported by targeted government incentives.

However, Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said API backward linkage is essential for keeping our pharmaceutical sector competitive, noting the country imports around $1.2 billion worth of APIs annually.

Rahman pointed out that Bangladesh may face immediate impacts from losing preferential trade benefits if it cannot secure an extended TRIPS waiver, which was proposed but not accepted at the WTO in December 2024. “This is a critical issue,” he stressed.

Others see the problem as deeper than infrastructure. Rauful Alam, a former principal scientist at PTC Therapeutics in the United States, said Bangladesh lacks sufficient investment in drug discovery and medicinal chemistry.

“Our pharmaceutical industry is heavily focused on formulation,” he said. “Without building capacity in organic chemistry and non-clinical research, true self-reliance will remain out of reach.”

NO TIMELINE FOR GAS SUPPLY

Officials involved in the project acknowledge the delays but cite national energy constraints.

GM Rabbani Talukder, deputy general manager of the Bangladesh Small and Cottage Industries Corporation, said core infrastructure – roads, drainage, a 20 MVA substation and gas pipelines up to plot boundaries – has been developed.

“The problem is gas supply,” he said, adding that Titas Gas and the energy ministry have cited national shortages.

Alternative solutions, including sustainable energy options on adjacent land, are being explored.

Razib Kumar Saha, deputy managing director of Titas Gas Transmission and Distribution PLC, said “There is currently no timeline for supplying gas to the API Park due to insufficient reserves.”

A proposal for a coal-based power plant exists but remains at an early stage, he added.​

 

[Saif]

Allergy drugs emerge as Bangladesh's fastest-growing pharma category

Sales of prescription allergy drugs have surged more than any other types of medicine since the Covid-19 pandemic.

www.thedailystar.net

Allergy drugs emerge as Bangladesh's fastest-growing pharma category

8 February 2026, 00:16 AM

Sales of prescription allergy drugs have surged more than any other types of medicine since the Covid-19 pandemic.

Revenues from these drugs climbed to around Tk 1,200 crore in the first nine months of last year, a 72 percent rise from the same period of 2021, according to IQVIA.

Growth peaked in 2024, when sales jumped 30 percent, shows data from IQVIA, a firm that tracks pharmaceutical sales covering 93 percent of outpatient prescriptions.

M Mohibuz Zaman, chief operating officer of ACI PLC, noted that the growing use of such medicines is closely linked to environmental degradation, particularly severe air pollution, which has increased the prevalence of allergic, lung, and skin diseases.

Meanwhile, Dr Gazi Md Salahuddin Mamun of health research institute icddr,b, noted that skin ailments have proliferated across South Asia since the pandemic.

“Although many people believe Covid-19 vaccines caused the rise in skin diseases, there is no evidence to support this,” he added.

Studies in several countries did report temporary upticks in inflammatory skin conditions after vaccination, but these resolved as immune systems recovered.

Bangladesh, however, faces a different threat of pathogen-related skin diseases.

A fungal infection called tinea, caused by Trichophyton indotineae, has been spreading across South Asia since before the pandemic, said Dr Mamun.

High hygiene standards during lockdowns temporarily slowed its advance. Now detected in Bangladesh, it resists standard antifungal treatments.

Overall, skin diseases have increased across the subcontinent over the last four to five years.

“Dust-laden air has triggered a surge in allergies across the country,” said Muhammad Halimuzzaman, deputy managing director and CEO of Healthcare Pharmaceuticals Limited.

“People are increasingly seeking quick relief from allergic discomfort, leading to frequent use of such medicines,” he said, adding that many patients also take overdoses or switch medicines without proper guidance, further boosting sales.

This pattern of self-medication, he noted, reflects growing public concern over air quality and its impact on health.

Other lifestyle drugs are booming too. During the January-September 2025 period, sales of cholesterol and hypertension medicines grew by more than 50 percent, while diabetic medicines rose by 37 percent.

ACI’s Zaman pointed out that while cholesterol-lowering drugs are used globally, the high incidence of hypertension and heart disease in Bangladesh is largely influenced by dietary habits alongside genetic factors.

“Increased protein intake over the past 10 to 20 years has contributed to rising cases of hypercholesterolemia and other cardiovascular conditions,” he said.

He cautioned that without greater public awareness about fatty food consumption and improved health education, these trends are likely to worsen in the future

Yet none match the dominance of gastric and ulcer treatments, which reached Tk 5,444 crore in the first nine months of last year, an 8 percent increase from the same period in 2024.

These account for roughly 15 percent of total pharmaceutical sales, a figure that says much about Bangladeshi eating habits.

The top three acid-suppressing medicines – Healthcare’s Sergel, Renata PLC’s Maxpro and Incepta Pharmaceutical’s Pantonix – together generated nearly Tk 1,900 crore in sales.

Sergel alone notched Tk 918 crore.

The trio has held the top spots for at least four years. Other leading names in the top 10, including Radiant Pharmaceutical’s Exium and Square Pharmaceutical’s Seclo and Nexum, also saw strong demand for similar conditions.

Beximco Pharmaceutical’s Napa and Bizoran, Square’s Sef-3, and ACME Laboratories’ Monas were additional top performers, each recording sales exceeding Tk 200 crore during this period.

“People’s eating habits are the main reason for the high demand for gastric and ulcer medicines,” said AM Shamim, founder and managing director of Labaid Group.

“Here, people prefer very spicy foods, which often cause gastric problems. Their meal routines are also irregular, so sales of gastric medicines are the highest in the country. We also see this trend in diagnostic centres.”

He added that people have become more health-conscious and now get tested whenever they feel unwell, which has led to more diagnoses of cholesterol problems.

Meanwhile, ACI’s Zaman noted that the unusually high consumption of hyper-acidity medicines is largely driven by food adulteration and the widespread intake of spicy and compromised food ingredients.

“These factors have made acidity-related conditions extremely common, leading to routine prescription and over-the-counter use of medicines such as ranitidine, omeprazole and esomeprazole for decades,” he said.

He recalls that even in the 1990s, international pharmaceutical companies were surprised by the volume of these drugs consumed locally.

After gastric medicines, antibiotics ranked second, with sales reaching Tk 2,255 crore, up 7 percent year-on-year.​

 

[Saif]

Pharmaceutical pollution needs to be stopped

Technological change in the global supply chain is driving a new era of productivity and creativity with far-reaching implications for global development and security. However, beyond adopting new, non-binding frameworks, all countries must work together to manage new and emerging technologies, bet

thefinancialexpress.com.bd

Pharmaceutical pollution needs to be stopped

Muhammad Zamir
Published :
Feb 22, 2026 23:01
Updated :
Feb 22, 2026 23:01

Technological change in the global supply chain is driving a new era of productivity and creativity with far-reaching implications for global development and security. However, beyond adopting new, non-binding frameworks, all countries must work together to manage new and emerging technologies, better leveraging their benefits while mitigating risks.

A recent UN report has referred to the current evolving cycle. Analyst Maximilian Malawistahas pointed out that medicines contaminated by toxic excipients used as solvents or antifreeze are resulting in multiple deaths and health complications. The contamination of pharmaceutical medicines through toxic excipients is killing many and harming others. The UN agencies for health, drugs and crime warn that systemic vulnerabilities in the global supply chain have been exploited to introduce industrial-grade toxic chemicals into medicines, harming thousands of people, including children.

On July 24, the United Nations Office on Drugs and Crime and the World Health Organisation released a 120-page report on the persistent but preventable threat of contaminated medicines that have claimed lives and compromised health. The report, titled "Contaminated Medicines and Integrity of the Pharmaceutical Excipients Supply Chain", reveals illegal substitutions of pharmaceutical-grade substances like glycerin, propylene glycol, and sorbitol with toxic excipients. Industrial-grade chemicals like diethylene glycol and ethylene glycol, typically used as solvents and antifreeze, can cause serious health issues, yet they are entering pharmaceutical supply chains.

Over the past few decades, twenty-five documented incidents have revealed over 1300 deaths worldwide. Over the past few decades, twenty-five documented incidents have caused over 1300 deaths worldwide, many of them children, due to excipient contamination. More recently, incidents in Gambia, Indonesia, and Uzbekistan resulted in 334 deaths and drew further attention to the issue, prompting more investigations. In the report, case studies have also found that some pharmaceutical manufacturers have been "quick to produce the medicine, as market demand has been very strong in some countries, outstripping the ability for oversight".

The first reported case was in 1937 in the United States, where DEG used as an excipient for sulfanilamide, killed 105 people. These once-considered anomalies have continued through 2022, with over 300 people in Africa dying in October of that year. The highest number of deaths from one case occurred in Bangladesh, where DEG used in Paracetamol syrup killed 339 people from 1990 to 1992.

The report also revealed that criminal networks exploit market volatility and regulatory gaps to introduce toxic excipients into the supply chain. This includes using falsified labels, substituting toxic chemicals for excipients, marketing falsified excipients online, lack of regulatory oversight, and inadequate coordination among regulators, law enforcement, and customs, which hinders timely investigations and prosecutions.

Experts have noted that to regulate the pharmaceutical supply chain for development, production, distribution, and inspection, principles known as GxP or cGxP are used to set guidelines. These systems are meant to ensure quality, safety, efficacy, and risk management across the supply chain. However, delays in certain areas can increase the risk of failure.

Observers have also noted that a main issue is the fact that excipient manufacturers are not subject to regulatory oversight. Nevertheless, WHO is now calling for an "appropriate" level of Good Manufacturing Practice (GMP) guidelines to be in place for the production, packaging, repackaging, labelling, quality control, release, storage, and distribution of excipients intended for pharmaceutical use.

So, there is a need for collaboration at all levels. This includes international organisations such as the WHO and UNODC, member states, regulatory authorities, criminal justice and law enforcement agencies, manufacturers, and excipient distributors, to take appropriate measures to prevent further harm. We must remember that a healthy life is better than death. Logical progress and the course of human history have advanced together; more recent technological innovations have emerged at unprecedented speed and reach, deeply influencing many areas of human activity.

Advances in artificial intelligence (AI) and machine learning, including neural networks, enable machines to process new information in real time. As federated learning becomes more widespread, machine learning models can collaborate without sharing sensitive data, enhancing privacy and security. These and other recent developments will find applications in sectors such as healthcare, where advanced algorithms can support personalised diagnosis and treatment.

New and emerging technologies, including nanotechnology and human enhancement, have implications for international peace, healthcare, and security.

With disruptive global forces creating new challenges, risks, and opportunities for development, security, and the global order, the need for effective tech-governance involving all countries through existing global institutions has never been more urgent.

In short, effective tech-governance would help countries employ common principles (including safety and transparency), codes of practice, and regulations to implement shared values and protect basic human rights, especially in healthcare and medicines. However, successful governance of new and emerging technologies globally will require the UN's 193 Member States to adopt new, non-binding frameworks and build on them by pursuing targeted innovations in global governance.

This sensitive situation in the health sector and pharmaceutical industry requires updated global governance tools and mechanisms to keep pace with technological advances. Benefits can then reach millions worldwide while also mitigating misuse of technology.

Muhammad Zamir, a former Ambassador is an analyst specialised in foreign affairs, right to information and good governance.​

 

[Saif]

Showcasing pharmaceutical industry's footprints

The three-day17thAsia Pharma Expo 2026 and the Asia Lab Expo 2026 are set to be held at the Bangladesh-China Friendship Exhibition Centre from Sunday next. With 23 years' legacy behind this exposition, it is a major event on the calendar of the Bangladesh Association of Pharmaceutical Industries (B

thefinancialexpress.com.bd

Showcasing pharmaceutical industry's footprints

Nilratan Halder

Published :
Mar 27, 2026 00:16
Updated :
Mar 27, 2026 00:16

The three-day17thAsia Pharma Expo 2026 and the Asia Lab Expo 2026 are set to be held at the Bangladesh-China Friendship Exhibition Centre from Sunday next. With 23 years' legacy behind this exposition, it is a major event on the calendar of the Bangladesh Association of Pharmaceutical Industries (BAPI). Since the launching of the event in 2003, it has showcased the footprints of different pharmaceutical companies in the country. At the same time the foreign companies from different countries, which attend the expo also exhibit the latest technological innovation in pharmaceutical processing, packaging, active pharmaceutical ingredients (APIs) and excipients. Likewise the laboratory segment demonstrates a whole range of lab and analytical instruments, clean room; heating, ventilation and air conditioning (HVAC) systems, water management and turnkey project solutions.

Clearly, the exposition scheduled for the last three days of this month is unlike other trade fairs welcoming all and sundry. It is meant for trade visitors who are willing to expand their pharmaceutical business particularly in the area of manufacturing drugs and procuring instruments that help slash production time and bring down costs. This is important for all industries, only more so for pharmaceutical industry because in the process the quality of life-saving drugs cannot be compromised at all.

This time 400 such pharma and related lab companies from over 20 countries are expected to have their representations at the exposition. Why is the BAPI hosting such a high-profile pharma exhibition? Bangladeshi drug companies boast exporting medicines to 157 countries including the United States of America (USA), the United Kingdom, Germany and Canada. This sounds great but hardly does justice to the industry's potential. Valued at only $3.5 billion, it should have been many times more. However, the projection is that the industry will be worth 6.0 billion by this year.

This is evident enough that the pharmaceutical sector has come of age and within a year it can grow by $2.5 billion at the rate of 15-18 per cent growth. But its export component was only $213 million worth in the 2024-25 fiscal year. Against this, export value of leather and leather goods was at $1.14 billion in the same fiscal. Although both industries have the potential to outpace the readymade garment (RMG), the official patronage in case of those two industries is virtually missing. The right kind of manufacturing ecosystem for leather and pharmaceutical is yet to be created. This is notwithstanding the fact that Bangladesh is in a dire need to diversify its export basket.

The main foreign exchange earner RMG's export was valued at $39.35 billion in the last fiscal. Both leather and pharmaceutical sectors receive step-brotherly treatment but their contribution to the country's economy could rival the success in the RMG sector. One of the two cannot take off on account of years of neglect including protracted delay in its relocation from Hazaribagh to Savar leather industrial park. Even when the relocation was complete, the malfunctioning Central Effluent Treatment Plant (CETP) has now held back the leather sector's expansion and growth. Without an efficient CETP, even high quality leather goods have to settle for lower prices on low-end international markets.

Similarly, the active pharmaceutical ingredients park in Munshiganj has encountered a stumbling block because of a lack of power and gas supply. It has now become a lame duck. But had there been the urgency of producing API locally, the country's pharma sector would make a giant leap. The majority of drugs would be far cheaper than those are now. If the drug companies in the country can meet 98 per cent of the country's requirement without local API, it leaves no doubt about the immense benefit such locally produced ingredients could accrue.

It cannot be denied that locally produced medicines are costlier than those in its largest neighbour India. China and India lead in production of APIs with India's share of 48 per cent in the APIs for US medicine. India is the top supplier of API with China following it. Bangladesh starts nice projects but not to complete those. In case of APIs, this is holding back the growth of pharmaceutical industry and making the most of the export opportunity. At the same time, medicines including life saving drugs are costlier so much so that many cannot afford those. In the absence of discipline in the health sector, the poor people are deprived of medical care and costly medicines only make the situation only worse.

Statistics like the meeting of 98 per cent domestic need for medicine is somewhat hollow because those who cannot afford costly medicines never figure in the statistical reckoning. Then the export volume also is not very large and 157 countries serving as destination for made in Bangladesh drugs offer small solace as the limited size would show. There is a small select band of pharmaceutical companies which has passed the rigorous tests in the Western countries including that of the US Food and Drug Administration. Maintaining the highest standard of quality drugs for all pharmaceuticals requires closer supervision by the Directorate General of Drug Administration. If a uniform standard for all drug companies can be achieved, the range and scope of medicine export will turn the country into a vibrant source of medicines for several countries. This has to be complemented by constant research and adoption of advanced manufacturing technologies. Thus the pharmaceutical industry will take off rendering the sector to exploit its potential for export. This is how the country may have a transition to be a reliable drug hub.​

 

[Saif]

Pharma sector faces supply risks amid Iran war fallout

Bangladesh’s pharmaceutical industry is facing mounting pressure as the ongoing US-Israel war on Iran disrupts global supply chains, threatening the availability of raw materials, pushing up freight costs and raising concerns over production stability.

www.thedailystar.net

Pharma sector faces supply risks amid Iran war fallout

Industry leaders raise concerns at Asia Pharma Expo

Star Business Report

Visitors gather at the 17th Asia Pharma Expo 2026 and Asia Lab Expo 2026, an international showcase of complete pharmaceutical manufacturing solutions, at the Bangladesh-China Friendship Exhibition Center in Dhaka’s Purbachal yesterday. PHOTO: Bapi

Bangladesh’s pharmaceutical industry is facing mounting pressure as the ongoing US-Israel war on Iran disrupts global supply chains, threatening the availability of raw materials, pushing up freight costs and raising concerns over production stability.

The issue was highlighted at the inaugural session of the 17th Asia Pharma Expo 2026 and Asia Lab Expo 2026, held at the Bangladesh-China Friendship Exhibition Center in Dhaka’s Purbachal yesterday.

Health Minister Sardar Md Sakhawat Hossain, who inaugurated the three-day exposition as the chief guest, said the government is closely monitoring the evolving situation and stressed that ensuring access to quality medicines remains a top priority.

He also reiterated a zero-tolerance stance on corruption and irregularities in the sector.

Industry leaders said the Gulf region unrest has already started to affect the import of active pharmaceutical ingredients (APIs) and other essential inputs, many of which rely on complex shipping routes through the Middle East.

“The war has disrupted logistics, increased freight costs and caused shipment delays,” said Abdul Muktadir, president of the Bangladesh Association of Pharmaceutical Industries (BAPI).

“Rerouting of sea and air cargo is making imports more expensive and unpredictable.”

The disruption is particularly significant for Bangladesh, which remains heavily dependent on imported raw materials despite its strong domestic manufacturing base. Prolonged instability could drive up production costs and put pressure on medicine prices in the coming months, industry insiders said.

According to BAPI, the industry now meets nearly 98 percent of domestic demand and exports medicines to more than 120 countries, reflecting steady expansion over the past decade.

Bangladesh currently exports around $300 million worth of medicines annually and is emerging as a growing player in the global pharmaceutical market.

However, sustaining this momentum will depend on the sector’s ability to navigate external shocks and ensure an uninterrupted supply of inputs.

Muktadir stressed the urgency of accelerating the development of a domestic API industry to reduce reliance on imports.

“The current situation highlights our vulnerability. Policy support is essential to strengthen local capacity,” he said.

He warned that if the conflict persists, rising freight costs and supply uncertainties could erode profit margins and disrupt production cycles, with smaller manufacturers likely to face greater pressure.

Despite the challenges, Bangladesh has so far managed to keep medicine prices relatively lower than in neighbouring countries, supported by strong local production and regulatory oversight, he added.

Md Shameem Haidar, director general of the Directorate General of Drug Administration, said the industry continues to maintain quality and effectiveness, although global disruptions pose new risks.

Industry insiders estimate the market size has already exceeded $3.5 billion, which could surpass $6 billion by 2026, driven by annual growth of 15 to 18 percent.

However, they cautioned that geopolitical tensions could test the sector’s resilience in the near term.​

 

[Saif]

US trade agreement: Ominous signals for Bangladesh’s pharmaceutical industry

Let us begin with Clause 2.6 of the US agreement concerning intellectual property: “Bangladesh shall provide a robust standard of protection for intellectual property. Bangladesh shall provide effective systems for civil, criminal, and border enforcement of intellectual property rights and shall...

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US trade agreement: Ominous signals for Bangladesh’s pharmaceutical industry

Maha Mirza writes about how the trade agreement with the United States poses a threat to the country’s pharmaceutical industry

Maha Mirza
Updated: 23 Apr 2026, 10: 57

Let us begin with Clause 2.6 of the US agreement concerning intellectual property: “Bangladesh shall provide a robust standard of protection for intellectual property. Bangladesh shall provide effective systems for civil, criminal, and border enforcement of intellectual property rights and shall ensure that such systems combat and deter the infringement or misappropriation of intellectual property...”

In other words, the US agreement is demanding a “robust implementation” of intellectual property (IP) laws and is calling for Bangladesh to strictly enforce patent laws.

So, who benefits and who loses?

We know that our pharmaceutical industry has a complex relationship with intellectual property laws. About 90 per cent of the “generic” medicines produced in the country rely on raw materials imported from abroad—most of which are not patented. Among such a vast volume of ingredients, how is it possible to determine which ones are covered by IP licenses, which are not, which have violated patents, and which have not? Who will determine this, and how? Whose responsibility is it? This is by no means the responsibility of port authorities or customs. Then who will do it? Seeking answers to these questions is quite startling.

To prevent violations of foreign companies’ IP rights in the import of raw materials or products, training programmes have long been initiated for port customs officials so that they can “detect and seize” such goods.

The most alarming aspect is that, through this agreement, the Americans are seeking access to all digital data of our customs system and demanding “digital enforcement rights” under intellectual property law. In other words, they would have control over all data from our ports and customs and would be able to track labels of imported raw materials used by manufacturers.

Intellectual property (IP) law is fundamentally a political issue. There has been a century-long “Cold War” between the Global South and the Global North over this matter. Whether, where, and to what extent intellectual property rights over goods or medicines should be enforced is directly tied to the economic self-reliance of poor countries and the survival of their local industries. Therefore, it cannot simply be treated as a customs or administrative issue.

The situation would effectively mean that the technology is controlled by the Japanese, decisions are made by the Americans, interests are served by multinational companies, while Bangladesh Customs would act as an agent of foreign powers, cracking down on domestic producers.

Patent: A matter of “crackdown,” or a political, economic, and judicial issue?

Intellectual property (IP) law is fundamentally a political issue. There has been a century-long “Cold War” between the Global South and the Global North over this matter. Whether, where, and to what extent intellectual property rights over goods or medicines should be enforced is directly tied to the economic self-reliance of poor countries and the survival of their local industries. Therefore, it cannot simply be treated as a customs or administrative issue.

Determining patents for raw materials is inherently complex. Thousands of cases remain pending for years. In that sense, it is also a judicial issue. In Africa, after countless deaths due to lack of medicines for AIDS and tuberculosis, a continent-wide movement emerged against the strict enforcement of patent laws in pharmaceuticals.

It is essential to view such a sensitive and highly controversial issue through a political-economic lens and to examine the history of patent-related legal battles across different countries.

Yet, by signing this agreement, the government of Bangladesh has reduced the broader political-economic discourse on intellectual property to a non-justiciable matter, effectively turning it into a policing issue. It is as if tracking is done from Japan, directives are issued from the secretariat to “catch everyone,” and customs officials carry out arrests. In reality, every patent issue requires deep scrutiny.

Moreover, Bangladesh’s Patent Office lacks both technical and legal capacity. Determining who qualifies for patent rights over new inventions requires economic, social, and judicial judgment, along with legal training, skilled manpower, and an understanding of public interest—much of which is currently absent. There is also a shortage of competent lawyers capable of handling related litigation. The issue is not merely technical; it is fundamentally about “public interest versus private profit,” a distinction that is not well understood here in this context.

In such an unprepared state, are we presenting training from the Americans or Japanese on how to seize IP violations by our own pharmaceutical companies as “technology transfer”? While patent and trademark disputes worldwide require lengthy court battles, are we, through this agreement, effectively surrendering judicial sovereignty to the United States?

What are generic medicines and why do they matter? What is the benefit of LDC status?

One of the advantages of being a Least Developed Country (LDC) is that Bangladeshi companies are not required to obtain patents or licenses for producing generic medicines. It is important to note that the raw materials and ingredients of generic medicines are identical to those of branded drugs.

Typically, generic versions are produced after the patent on branded medicines expires. Because Bangladesh is an LDC, local companies are not required to pay patent fees to international brands. Hundreds of pharmaceutical companies in the country have developed by producing generic medicines under these intellectual property exemptions.

A major strength of Bangladesh’s pharmaceutical industry is that it operates on a “high-volume, low-margin” production model. Additionally, keeping medicine prices affordable for decades has been a significant achievement of the National Drug Policy (1982).

We buy generic medicines for as little as Tk 50 from local shops, while the same drugs may cost many times more in the United States or Europe. The industry now meets nearly 97 per cent of domestic demand and also exports to 100 countries. This development has been possible largely due to the relaxation of patent laws under LDC status.

If Bangladesh is graduated out of LDC status, or if it is forced through bilateral agreements to pay intellectual property fees, then hundreds of local companies will not be able to sustain low-cost production after paying such large sums. This is precisely what the United States seeks, and the agreement makes this clear.

At present, most of the country’s 182 pharmaceutical companies are small. If strict intellectual property laws are enforced under US conditions, these smaller firms will not be able to survive after paying patent fees. In that scenario, the pharmaceutical security of 200 million people could fall into the hands of a few large companies and, in particular, multinational pharmaceutical corporations.

Complexity of patent determination

There are many essential and widely used medicines in the country. Let us assume that to produce one such medicine, a raw material called Salt-1 must be imported. Because of LDC benefits, local companies can currently import it without paying any patent fees. However, if the agreement is implemented, and if this salt or any similar ingredient used in producing omeprazole is patented, then pharmaceutical companies in Bangladesh will be required to pay patent fees.

It should be noted that the US agreement is stripping away Bangladesh’s LDC-related benefits. The advantages Bangladesh had under WTO rules as an LDC have been sacrificed, along with policy sovereignty, under the constraints of a bilateral agreement with the United States. In return, Bangladesh has taken on 15 additional conditions.

In this way, if production of every new medicine, new raw material, or even a modified version of an existing raw material must pass through various patent barriers, it will become extremely difficult for the country’s pharmaceutical industry to survive. That is why even major pharmaceutical companies are saying that there is no scope for reviewing this agreement. Every clause related to intellectual property in the agreement is disastrous for the entire pharmaceutical sector.

Public interest vs corporate intellectual property

Many countries in the world now handle IP laws with great care and address patent-related complexities. In local pharmaceutical production, they prioritise public interest, public health, and the principle of “access to medicines.”

Countries such as Brazil, Egypt, and Indonesia have trained their patent offices over many years based on national interest. These patent offices have developed the capacity to maintain a balance between public interest and corporate interests.

Natco vs Roche: Patent vs public interest

The Indian company Natco wanted to produce a spinal medicine called risdiplam. However, the patent for this medicine was held by the Swiss company Roche. Roche filed a lawsuit, arguing that the Indian company must pay royalties to produce the drug. After prolonged legal proceedings, the Indian High Court ruled in favour of Natco, granting it the right to produce the medicine locally.

After Natco produced the generic version, the cost per bottle fell to 15,000 rupees, whereas Roche had been selling the same medicine for 600,000 rupees. In other words, local production reduced the cost by 97 per cent. If the court had ruled in favour of the foreign company, Indian citizens would not have been able to access this expensive and rare medicine so affordably. This ruling is considered a landmark in the history of intellectual property law, delivering a clear message: public interest comes first, corporate interest comes second.

Will medicine prices rise?

Nearly 10 per cent of Bangladesh’s population suffers from diabetes—around 20 million people.

Recently, in the Asian Development Review, four researchers showed that if Bangladeshi pharmaceutical companies are required to pay patent fees, the price of domestically produced insulin could rise by up to 11 per cent.

In addition, the prices of chemotherapy drugs, oncology medicines, and hepatitis C treatments would increase. Bangladesh’s market monitoring system is extremely weak. Due to administrative and judicial unpreparedness in an unregulated market, the prices of generic medicines could rise by as much as 1,000 per cent. Not only would prices increase, but many medicines could also become scarce or unavailable even at higher prices.

Already, out-of-pocket healthcare spending in Bangladesh is among the highest in South Asia. If a 20-taka generic medicine costs Tk 500, a public health crisis is inevitable.

Who is putting the pharmaceutical industry at risk?

It should be noted that the US agreement is stripping away Bangladesh’s LDC-related benefits. The advantages Bangladesh had under WTO rules as an LDC have been sacrificed, along with policy sovereignty, under the constraints of a bilateral agreement with the United States. In return, Bangladesh has taken on 15 additional conditions.

The United States will impose conditions, sanctions, and tariffs—that is its long-standing practice.

But who willingly sacrificed the interests of nearly all key domestic industries? Who secretly and openly campaigned in favour of this agreement?

Who worked so extensively over a long period to implement an agreement that sacrifices the achievements of Bangladesh’s garment industry, poultry and dairy sectors, pharmaceutical industry, and agriculture?

The Ministry of Commerce, the Economic Relations Division (ERD), a powerful adviser in the interim government (now a minister in the current government), and influential consultants working with ERD were highly eager to finalise this agreement. It is also worth noting that many of them had earlier advocated for Bangladesh’s graduation from the LDC list during the Hasina government.

The calculation of the Hasina government was different. Amid severe economic inequality, the state became fixated on the hollow prestige of becoming a middle-income country, while ignoring essential issues such as livelihoods, employment, and public health. GDP figures were manipulated, human development indicators were misrepresented, and the country pursued LDC graduation based on superficial metrics like per capita income.

However, any sensible citizen would agree that with such widespread poverty and severe unemployment, graduating to a middle-income country would cause local producers to lose one trade benefit after another. We clearly state that in a country with millions of poor people, those who, through opaque processes, voluntarily accepted a bilateral agreement that sacrifices all LDC benefits must be held accountable.

* Maha Mirza is a writer and researcher​