[🇧🇩] Pharmaceutical and Chemical Industry in Bangladesh

[Saif]

The promises and pressures of Bangladesh’s pharma industry

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

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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.​