[🇧🇩] Pharmaceutical and Chemical Industry in Bangladesh

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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.​

 

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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​

 

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Eskayef begins production of Novo Nordisk's modern insulin cartridges

Bangladesh’s leading pharmaceutical company Eskayef Pharmaceuticals Limited (SKF) has begun producing modern insulin cartridges in the country for the first time. The production has started through an agreement with Denmark-based pharmaceutical company Novo Nordisk. As a result, modern...

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Eskayef begins production of Novo Nordisk's modern insulin cartridges

Special Correspondent
Dhaka
Updated: 28 Apr 2026, 22: 19

Eskayef Pharmaceuticals Limited and Novo Nordisk have started producing modern insulin cartridges in the country using Danish technology. Guests pose for a photo at the inaugural programme at the Pan Pacific Sonargaon in Dhaka on 28 April.Tanvir Ahammed

Bangladesh’s leading pharmaceutical company Eskayef Pharmaceuticals Limited (SKF) has begun producing modern insulin cartridges in the country for the first time.

The production has started through an agreement with Denmark-based pharmaceutical company Novo Nordisk.

As a result, modern insulin cartridges will now be more easily available to patients with diabetes at comparatively lower prices.

The information was shared at a programme held today, Tuesday, at the Pan Pacific Sonargaon in Dhaka.

The event, titled “Shabash Bangladesh: Increasing Access to Modern Insulin through Technology Transfer from Denmark,” was attended by Health Minister Sardar Sakhawat Hossain as the chief guest.

The initiative is being regarded as a major milestone in making high-quality diabetes treatment more accessible and in enhancing the country’s capacity to produce biologic medicines.

Novo Nordisk has been producing human insulin in Bangladesh since 2012, and such insulin has even been exported. However, modern insulin products—such as “Novomix” and “Novorapid”—had so far been imported from Denmark.

Through technology transfer to SKF, these modern insulin cartridges will now be produced domestically using the same technology, marking a first for Bangladesh. This will make advanced insulin more accessible and affordable. Compared to human insulin, modern insulin is more advanced and works more effectively in the body. To maintain global standards, every batch produced in Bangladesh will be quality-checked in Denmark.


Health Minister Sardar Sakhawat Hossain thanked both Novo Nordisk and Eskayef Pharmaceuticals Limited for the initiative. He said, “Producing modern insulin in the country is undoubtedly a significant step. It will open a new horizon in insulin production. However, there can be no compromise on quality. This is a new beginning for the country.

Bangladesh has made progress in tackling diabetes, yet a large portion of the population remains affected. Therefore, producing insulin domestically at a relatively lower cost is highly commendable. Manufacturers should ensure that prices remain within people’s purchasing capacity.”

Health Minister Sardar Sakhawat Hossain speaks at a programme marking the launch of modern insulin cartridge production in the country using Danish technology by leading pharmaceutical company SKF. The event was held today, Tuesday, at the Sonargaon Hotel in Dhaka.Tanvir Ahammed

Professor AK Azad Khan, president of the Diabetic Association of Bangladesh, described the successful local production of modern insulin cartridges as a major milestone. He said this is not the end but the beginning of a journey, adding that the technology will help Bangladesh achieve greater success in biopharmaceutical production in the future.

Joy Thyagarajan, Senior Vice President for Asia Pacific at Novo Nordisk, said, “This is not just a project; it reflects a long-term commitment to millions of patients with diabetes in Bangladesh. We have moved beyond simple technology transfer to a milestone that will take Bangladesh to greater heights.”

Joy Thayagarajan, Senior Vice President for Asia Pacific at Novo Nordisk, delivered a speech at the event marking the launch of modern insulin cartridge production in the country using Danish technology.

Joy Thayagarajan, Senior Vice President for Asia Pacific at Novo Nordisk, delivered a speech at the event marking the launch of modern insulin cartridge production in the country using Danish technology.Tanvir Ahammed

He added that all personnel involved have been trained according to international standards, positioning Bangladesh as a promising hub for biotechnology.

Eskayef Pharmaceuticals Limited is a concern of Transcom Group. At the event, the Group’s Chief Executive Officer (CEO) Simeen Rahman said, “Today is a proud moment not only for SKF but for the entire country. Since producing human insulin, we have demonstrated our capabilities step by step. Through technology transfer from Denmark, Novo Nordisk’s modern insulin is now being produced in the country. Each insulin is being manufactured in strict compliance with international standards. At the same time, it is being regularly verified by experts. Every insulin produced by SKF is safe, effective, and of the highest quality.”

Simeen Rahman, Chief Executive Officer (CEO) of Transcom Group, delivered a speech at the event marking the launch of modern insulin cartridge production in the country using Danish technology. Tanvir Ahammed

Danish Ambassador to Bangladesh Christian Brix Moller said that this initiative will strengthen Bangladesh’s healthcare system. He said it will make life-saving treatment more accessible and further strengthen the country’s healthcare system by building local capacity.

Director General of the Directorate General of Drug Administration, Major General Md Shamim Haider, said that this achievement marks an important advancement for the country’s health sector. It proves that advanced technology and high-quality production capacity have been successfully transferred to Bangladesh. This achievement has strengthened the commitment to meeting the highest standards of quality, safety, and efficacy for medicines produced in the country.

Director of BIRDEM Academy Faruk Pathan said, “We are entering a new technology for producing biologic medicines. This production is very difficult. Standards must be maintained at every stage of production. Through the use of this technology, patients in our country will be able to access modern insulin at lower cost.”

Managing Director of Novo Nordisk Bangladesh, Mohammad Riyad Mamun Pradhani, delivered the welcome speech at the event. Thomas Dyg, Director (GCM) of Novo Nordisk; Ikhtiar Hossain, Executive Director of SKF Pharmaceuticals; Professor Dr Farid Uddin; and national football team captain Jamal Bhuyan also spoke at the event.

Large vaccine production plant to be established soon

At the event, Health Minister Sardar Sakhawat Hossain said that a large vaccine production plant will soon be established in the country.

“We are going to set up a large vaccine production plant in Bangladesh, which will produce vaccines for measles and other diseases. It will begin very soon. However, more initiatives are needed to tackle infectious diseases such as HIV/AIDS and tuberculosis. We want pharmaceutical manufacturers, alongside the government, to come forward,” he added.​