[🇧🇩] Pharmaceutical and Chemical Industry in Bangladesh

[Saif]

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

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

www.thedailystar.net

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Pharma exports rise, but Feb slump raises eyebrows

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

www.thedailystar.net

Pharma exports rise, but Feb slump raises eyebrows

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Bilal9]

Pharma exports rise, but Feb slump raises eyebrows

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

www.thedailystar.net

Pharma exports rise, but Feb slump raises eyebrows

View attachment 15291

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

February slump is a blip and nothing to worry about.

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

 

[Bilal9]

Renata Approved to Export Parkinson’s Drug to Europe​

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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.​