‘Local pharma industry should get ready to face post-LDC challenges’

Bangladesh should get prepared to utilise the immense potential of the billions of dollar worth global pharmaceutical industry as the nation will lose the preferential trade benefits after its graduation to a developing country, an economist said today.

The Tk 200-crore local pharmaceuticals industry that meets 98 per cent of the domestic demand for medicine needs to go for more research and development to strengthen its capacity to produce new molecules, said Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD).

The local pharma companies will have to follow the patent guidelines to produce medicines when Bangladesh will graduate to a developing country after 2026, he said.

If the medicines are produced following the patent rights, the prices of the drugs in the local market will be rise, Rahman said.

Bangladesh tried to extend the waiver of the Trade Related Aspects of Intellectual Property Rights (TRIPS) primarily for six to nine years and then up to January 1 of 2033.

Currently, the least developed countries (LDCs) have been allowed the TRIPS waiver up to January 1 of 2033, but the status is not applicable for the graduating LDCs.

However, in the 12th Minister Conference of the World Trade Organisation (WTO) held in Geneva last month, the global leaders did not extend the deadline of the TRIPS for the graduating LDC.

In the WTO, the global leaders decided to extend the TRIPS waiver for the production of very emergency drugs like Covid-19 vaccines five years for all the countries.

As a result, Bangladesh did not get the extension in TRIPS waiver, he said.

in his keynote paper, Rahman also suggested for addressing the shortage of skilled manpower, exploring opportunities of setting up joint ventures to attract more foreign direct investment (FDI) to the Special Economic Zones (SEZs).

Rahman also suggested for encouraging contract manufacturing, bringing changes in the local law to take the advantage of TRIPS Agreements and quick operationalisation of the Active Pharmaceuticals Ingredients Parks.

Rahman was speaking at a discussion on the 'Export of pharmaceuticals sector upon LDC graduation: Strategies and way forward' organised by the Dhaka Chamber of Commerce and Industry at its office in Dhaka.

Government high-ups, drug manufacturers, exporters, university professors, experts and businessmen participated in the discussion.

Rizwan Rahman, president of the DCCI, also spoke.