[🇧🇩] 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.​