Production of active pharmaceutical ingredients (APIs) at the API Industrial Park in Gazaria of Munshiganj will begin next month, with ACME Laboratories set to commission its manufacturing unit despite the lack of gas supply.

 "Our factory is almost ready for operation," said Sheikh Maksudur Rahman, director of ACME Laboratories.

The Bangladesh Small and Cottage Industries Corporation (BSCIC) has established the park on 200 acres of land and allocated 42 plots for 21 industrial facilities.

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So far, four local manufacturers -- ACME Laboratories, Healthcare Pharmaceuticals, Ibn Sina Pharmaceuticals and Unimed-UniHealth Fine Chemicals -- have set up factories at the estate.

At present, Bangladesh depends on imports to meet around 85 percent of its requirement for both biological and non-biological small molecule APIs, costing the country about $1.3 billion each year.

Local companies cater to the remaining demand with at least six companies, including Square Pharmaceuticals and Incepta Pharmaceuticals, producing APIs worth more than Tk 2,000 crore annually.

Industry people say at least 50 percent of the country's demand for APIs could be met through local production if more big companies invest in the industry.

This means the remaining 50 percent would still need to be imported since it is now possible to manufacture only non-biological small molecule APIs locally.

Still, it is a venture worth making as the domestic market for non-biological small molecule APIs is currently worth around Tk 6,500 crore, according to Rahman.

He said regulatory bodies, including the Directorate General of Drug Administration, the Department of Inspection for Factories and Establishments and the Department of Narcotics Control, have already inspected their unit twice.

 "Our investment in the facility has reached around Tk 500 crore as we imported sophisticated machinery from the US, Germany, Japan and India to ensure API production of global standard."

Rahman believes the unit will be able to produce APIs worth Tk 600 crore annually.

SM Shafiuzzaman, secretary general of the Bangladesh Association of Pharmaceutical Industries, which represents 265 local drug makers, said most of their members have not set up factories at the API park due to the long delay in getting gas connections.

He also said many companies in the pharmaceutical sector are currently under financial pressure. "So, they are taking time."

Monjurul Alam, chief executive officer of Beacon Medicare, said the pharmaceutical sector needs more research and development in regards to API manufacturing.

This is because local manufacturers will have to develop their own API formulas to avoid patent laws after Bangladesh graduates from the group of least-developed countries in 2026.

 "We need API for our interest to take the pharmaceuticals sector to the next level."

Alam also said the pharmaceutical sector needs to develop biological drugs as it is dependent on non-biological medicine.

 "We have realised in advance the need to make our own APIs. Therefore, we have taken the preparation to set up a factory in the park."

M Mohibuz Zaman, managing director of ACI HealthCare, said they will also start establishing their factory after gas connections are confirmed.

He informed that they delayed their plans to invest in the park amid the ongoing economic crisis and the appreciation of the US dollar as it would increase the amount of investment required.

Sanjay Kumar Bhowmik, chairman of the BSCIC, said that gas connections will reach the industrial park within a short time.

 "We already spoke with Titas Gas Transmission and Distribution Company to provide gas connections while water and other utility supplies have already been ensured."

Bhowmik also said that they would work with pharmaceutical companies to quickly set up their units after ensuring gas supply.

He said large companies like Square and Beximco have obtained plots but are yet to start constructing their factories.

"We will sit soon with the companies that have not yet started setting up their factories. Gas supply will reach the facility next month."