Despite April decline, pharma exports maintain upward trend

Bangladesh's pharmaceutical exports rose by 3.46 percent year-on-year in the first ten months of the current fiscal year, despite a sharp drop in April due mainly to holidays in key markets and US aid cuts hurting merchandise shipments. 

Pharmaceutical exports fell by 34.25 percent year-on-year in April, slipping from $18.16 million to just $11.94 million, according to Export Promotion Bureau (EPB) data.

While the abrupt decline raises concern, drug makers say the sector's overall performance is positive. 

Between July 2024 and April 2025, pharmaceutical exports reached $177.42 million, up from $171.49 million in the same period the previous year.

Industry insiders say the April decline should not be seen as a sign of long-term weakness, pointing instead to temporary disruptions. 

These short-term export hiccups include port delays, paused orders from Cambodia and Vietnam during their holiday seasons in early 2025, and fiscal tightening in the United States and the United Kingdom.  

"The April figures are worrying, but the broader trend is still positive," said Mohammad Ali Nawaz, chief financial officer of Beximco Pharmaceuticals.

"Our export growth remains steady," he added. 

Although unable to identify the exact cause of the April drop, Nawaz ruled out any link to recent US tariffs imposed under the Trump administration.

Other exporters cited supply chain delays, deferred donor-funded purchases, and weaker demand in African and Latin American markets. 

Incepta Pharmaceuticals was among the hardest hit after USAID suspended medicine procurement following a funding cut to the US aid agency.

"Since February, the funding cuts have severely disrupted our supply chain. We had to cancel two major vaccine shipments," said Incepta's Executive Director Arefin Ahmed. 

He noted that USAID previously bought medicines worth at least Tk 10 crore per month.

"They were a consistent and reliable buyer," he said, expressing frustration over the sudden loss of a key client.

The disruption has not only affected revenues but also hampered Incepta's ability to meet its commitments to supply essential medicines to several countries, including Bangladesh, he added.

Despite the sector's decline in April, Square Pharmaceuticals reported strong overseas demand.

"Our export orders are holding up well. We are seeing good traction internationally," said Zahangir Alam, chief financial officer of Square Pharmaceuticals.

However, he admitted he was unsure why the wider industry saw a downturn in April. "I have no idea why the industry saw a decline."

Monjurul Alam, CEO of Beacon Medicare, a subsidiary of Beacon Pharmaceuticals, urged caution in interpreting the April data.

"Exports often slow early in the year, especially when ASEAN markets halt orders during holidays," he said. "Shipments are actually increasing. This is just a seasonal dip." 

He predicted a rebound as paused markets resume orders. "One or two months of lower shipments shouldn't be a cause for concern."

While Bangladesh's pharmaceutical export volumes are meagre in global terms, Alam emphasised the sector's value in enhancing the country's international image and industrial reputation.