Pharma sector shows signs of recovery

The pharmaceuticals sector of Bangladesh appears to be rebounding from the crisis stemming from both external and internal fronts in recent years as exports are growing, said a top official.

The shipment rose around 10 percent year-on-year to $117.38 million in July-January of the current financial year, data from the Export Promotion Bureau showed.

"The export of the pharmaceuticals sector is increasing," said SM Shafiuzzaman, secretary general of the Bangladesh Association of Pharmaceutical Industries.

"But it can't be said that the sector is going to see a full recovery soon since the global economy still faces deep uncertainty and the exchange rate has not stabilised yet."

He says the sector will fare well in the export market in the current fiscal year as shipments in highly regulated markets such as the US, Australia, and the European Union are increasing.

"The export is on the rise despite the global economic crisis as some local manufacturers have raised the quality of their products to the level of US and European standards. The quality drugs have not only led to increased exports but also brightened the image of the country."

According to Shafiuzzaman, the sector is, however, facing problems in securing raw materials as manufacturers are import-dependent.

Bangladesh's local currency has weakened by about 30 percent against the US dollar in the past two years, making imports costlier and exports attractive.

The country needs to import $1.3 billion worth of raw materials for the pharmaceuticals sector a year since local firms can at best meet 10 to 15 percent of the annual demand for inputs for the nearly $3.5-billion industry.

The sector meets 98 percent of the local demand and also ships products to around 150 countries.

Shafiuzzaman said Bangladesh offers products at competitive prices compared to many other countries, becoming an attractive destination for pharmaceutical manufacturing.

"The cost advantage allows local companies to produce high-quality generic drugs at competitive prices."

At the same time, he said, the pharmaceutical industry adheres to international standards such as Good Manufacturing Practices and the International Organization for Standardization.

"Our products meet stringent quality requirements, making them acceptable in global markets."

Some pharmaceutical companies have obtained regulatory approvals from drug authorities such as the US Food and Drug Administration, the European Medicines Agency, and the World Health Organization.

"These approvals open up lucrative export opportunities in the US, Europe, and other markets," Shafiuzzaman said.

He said domestic medicine makers produce a wide range of generic drugs, including antibiotics and anti-cancer medicines. "This diverse product portfolio allows them to cater to various global healthcare needs."

Shafiuzzaman also credited government incentives and support measures for the growth of the pharmaceutical industry and raising its competitiveness.

"Overall, Bangladesh's pharmaceutical industry has significant export potential driven by its cost competitiveness, adherence to standards, regulatory approvals, diverse product portfolio, and government support."