SL NO
1
TOPICS
INTRODUCTION
OBJECTIVES
METHODOLOGY
PAGE NO:
1-2
3-4
BANGLADESH
5-17
INTERNATIONAL MARKET:
EXPANDING MARKETS:
18-19
CONCLUSION
20
REFERENCES
21-22
Page 1
Page 2
OBJECTIVES:
In this report a SWOT analysis of pharmaceutical marketing in Bangladesh has been presented in
order
To present the pharmaceutical exports scenario of Bangladesh.
To evaluate export prospect of pharmaceutical industries of Bangladesh.
To identify the problems of associated with pharmaceuticals exports from Bangladesh.
Page 3
Page 4
for development of this sector. Today, BAPI is a very strong organization having as many as 144
companies (as listed at Annexure-I) as its members.
Here are the names of some pharmaceutical companies of Bangladesh:
Square Pharmaceuticals
Incepta Pharmaceuticals
Beximco Pharmaceuticals
Opsonin Pharma
Renata
Eskayef Bangladesh
ACI
Acme Pharmaceutical
Aristopharma
Drug International
Sanofi-Aventis Bangladesh Ltd
GlaxoSmithKline(GSK) Bangladesh Limited
Orion Pharma Ltd
Novo Nordisk
Healthcare Pharmaceuticals Limited
General Pharmaceuticals Ltd
Sandoz (generic pharmaceuticals division of Novartis)
Popular Pharmaceuticals Ltd. (PPL)
Novartis (Bangladesh) Limited
IBN SINA Pharmaceutical Industry Ltd. (IPI)
Nuvista Pharma Limited
UniMed UniHealth Pharma Ltd
Sun Pharmaceutical (Bangladesh) Ltd
Globe Pharmaceuticals Ltd
PREPARED BY PRIYANKA FLORINA
Page 5
Novartis
1,012,979,62
0.00
Beximco
1,180,100,71
6.86
Square
824523034.
04
2011
2010
2009
90564008 824205923.
0
00
916142685.
55
450276816.
97
786077671.
691938303.
65600000 456805335.
Page 6
868,425,367.
99
4
Incepta
639,340,104.
00
ACME
249,828,903.
59
SK+F
168,495,257.
00
Renata
215,163,002.
65
Jayson
76,223,923.6
2
Aristo Ph.
237,271,250.
00
10
11
Opsonin
87,744,824.0
0
12
Opso Saline
ACI
109,486,426.
00
13
General Ph.
63,155,991.4
7
14
Glaxo (BD)
36,355,889.0
0
15
Global Capsules
157,858,775.
20
16
Delta
51
43
70
480865794.
00
40000000 208056823.
0
96
147686158.
70
235489197.
51
17410990 139967649.
6
45
99278398.2
4
169116261.
14
16000000 216484100.
0
00
80021267.4
4
267878584.
00
14333241 106019437.
0
30
78247190.0
0
128083402.
40
11191600 131381523.
0
60
136832162.
95
168500988.
00
11139860 79171847.0
7
0
52975640.0
0
64445440.0
0
88000000 63813190.0
0
18176130.0
0
100098605.
60
85660450 56881892.7
5
119479729.
12
96445805.0
0
76170769 70173189.3
0
729850.00
57574616.3
7
89205112.0
0
70344880 ??
70443387.5
4
43278543.0
0
51200000 36859464.0
0
22337311.0
0
116030480.
00
49273066 51196700.2
5
119626462.
75
32600000.0
41700000 11746808.0
107379256.
Page 7
39,858,165.3
6
17
Drug Int.
2,253,896.00
18
19
20
21
22
23
24
25
26
27
28
29
30
Drug
Int.
(Herbal)
228,144.00
Sanofi Aventis
(BD)
37,301,869.2
0
Navana
39,000,000.0
0
Globe
75,210,144.0
0
Orion
43,697,301.0
0
Popular
87,315,327.0
0
Popular Infusion
3,087,873.00
Edruc
25,108,216.0
0
Health Care
23,135,228.0
0
Remon Drug
23,910,232.0
0
Ziska
13,020,000.0
0
Medimet
Somatec
JMI Ph.
JMI
Bangla
Syringe
96
30930576.9
3
41121920 5627821.50
1068620.00
38456934.0
0
38709360 14899430.0
0
8315580.00
41310000.0
0
38000000
41000000.0
0
28000000 3215100.00
1639050.00
43095744.0
0
23443232 27398434.0
0
23615476.7
0
66243372.5
5
28000000 25016472.7
2
9725870.00
2463000.00
14925836.1
8
14048400
40251258.0
0
13600000 11260713.6
0
20504730.0
0
10049756.6
4
9800000
8528246.60
6338715.60
3580940.00
9200000
7505000.00
8688540.00
2720000
1850000
2035200
460800
2577000.00
1400000.00
4629638.00
Page 8
31
Beacon
48,750,000.0
0
32
33
21536080.0
0
6400000
1470000.00
808800
3302080
378000.00
350943600.
00
2466400
672700.00
73720767.6
0
5003640.00
1080000
480550.00
504000.00
2689600.00
4692000
6258700.00
1768000
2099000.00
9291200
1487300.00
4297700
479500.00
3388896.00
3,936,960.09
34
Techno Drugs
461,264,799.
00
35
36
Novo
Care
Alco
Health
5,779,800.00
4,354,376.00
37
Nipa
1254850.00
1,317,965.00
38
Medicon
7399967.00
12,416,040.0
0
39
Hudson
40
IBN Sina
23,667,113.0
0
41
42
Asiatic Lab
Modern Ph.
20486660.0
0
11299540.0
0
1550000.00
2624930.00
1565129.11
518400.00
94519.32
952000.00
11900000.0
0
8750000.00
1087824.00
959,880.00
43
44
EDCL
Amico Lab
1456286.08
1,079,847.60
45
46
47
580772.02
903000.00
566,000.00
48
49
Active
Fine
Chemicals Ltd.
2,705,174.00
Pacific
In Total Export
Value BDT
6,199,276,55
7.63
2058000.00
5396212817 42122412 3274323538 3352076677
.50
60
.91
.27
Page 9
EXPANDING MARKETS:
According to International Marketing Services (IMS), Bangladesh's domestic pharmaceuticals
market grew nearly 13% to $250m in 2013.
In addition, per the Commerce Ministry's Export Promotion Bureau (EPB), Bangladesh now
exports to about 85 countries including Austria, Denmark, the UK, Germany, France, Singapore,
Indonesia, Vietnam, the Philippines, Brazil, Pakistan, Burma and Yemen.
"Our products are being accepted with confidence at home and abroad because of the high
quality," said Directorate General of Drug Administration (DGDA) Director Selim Barami.
According to the DGDA, 194 of 275 government-registered pharmaceutical companies regularly
produce items like cough syrup and flu tablets. Square, Incepta, Beximco, Acme, and Eskayef
account for 45% of Bangladesh's total production, manufacturing products for export in state-of
the-art factories.
Companies like the UK's GlaxoSmithKline, Switzerland's Novartis and France's Sanofi have set
up plants producing life-saving vaccines, anti-cancer drugs and other high-end products in
Bangladesh.
Industry growth has created employment opportunities including for pharmacists, chemists,
microbiologists and doctors that pay well enough to keep professionals from going overseas.
Bangladesh is trying to establish an industrial park for pharmaceutical production.
Needless to mention that, Bangladesh can also ensure huge value addition by pharmaceutical
export since the export price is much higher than the local price. For example, in Bangladesh the
price of one fluconazole capsule is Tk. 8 whereas fluconazole is exported to Pakistan at a price of
Tk. 38. Similarly, the price of paracetamol syrup in Bangladesh is Tk. 13 but it is exported to
Russia at a price of Tk. 100
Page 10
The future of pharmaceutical exports from Bangladesh is bright. After the inclusion of the Doha
declaration in WTO / TRIPS Agreement, each and every country belonging to the LDC Category
has the option not to opt for pharma product patent until year 2,016; which means, they can now
legally reverse-engineer patented products and sell in their markets and can export to other
LDCs, too. This generates a huge export opportunities for Bangladesh, as among all 50 LDCs,
Bangladesh is the only country which had a strong pharma manufacturing base. Besides direct
export operations, there is also a huge opportunity for the Bangladeshi companies to go for the
Contract Manufacturing and compulsory licensing. The good news is, the leading pharma
exporters of Bangladesh have already started availing these opportunities.
Page 11
products conforming to all international standards like British Pharmacopoeia (BP), United
States Pharmacopoeia (USP), European Pharmacopoeia (EP) and any other recognized standards.
Equipped with the most advanced technologies & following cGMP standards, Bangladesh
Pharmaceutical Industry can cater to any healthcare need of all concerned. Some of the
Pharmaceutical manufacturers of Bangladesh have made multimillion dollar investments on new
plant and facilities conforming to USFDA standards. They have sufficient production capacity
for contract manufacturing. Since Bangladesh has abundant and cheap labor force, the cost of
contract manufacturing would be highly favorable compared to any other countries of the world.
3) JOINT VENTURE INVESTMENT OPPURTUNITIES:
Bangladesh has a very big market for Active Pharmaceutical Ingredients (APIs), excipients and
intermediates. Although it is self sufficient in formulation drugs meeting 95% of countrys
demand it still depends largely on imported bulk drugs. Around 80% of Bangladeshs total need
of API is being met through import. Under TRIPS agreement Bangladesh will enjoy
manufacturing patented drugs until 2016. Since most of the countries of the world will not be
able to manufacture patented drugs after 2005, there exists an excellent opportunity for foreign
investors in bulk drug manufacturing in Bangladesh. They will be able to cater to growing bulk
drug need of Bangladesh as well as 49 such other patent exempted countries of the world.
Bangladesh would be an excellent place for investors and relocating R&D set-ups for reverse
engineering, especially for those countries that will be restricted to manufacture patented drugs
after 2005.
Since India and China have very good expertise in API and formulation R&D, they may like to
manufacture the APIs outside their countries as they cannot manufacture these patented APIs in
their countries after 2004.
Because of cost advantage, large pharmaceutical companies of highly regulated markets are now
going for joint venture projects. They have already signed several contracts with companies of
India and China. Bangladesh also has enormous opportunities to go for joint ventures with these
large global companies for manufacturing pharmaceutical finished products.
Page 12
Eskayef
and
Square
carved
niche
in
the
market
much
earlier.
State Pharmaceuticals Corporation of Sri Lanka will procure medicines worth Tk 400 crore from
Bangladesh during fiscal 2013-2014.Sri Lankan Health Minister Maithripala Sirisena expressed
their interest to import the medicines during his visit to Bangladesh .They sent a list of 778
medicines and 1,284 laboratory items to the EDCL.
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Bangladesh produces 75 percent of these medicines, and the Lankan government has allowed
getting the items manufactured by private companies. They prefer our medicines, which, they
said are better than those from India. We can offer high quality products at lower prices.Sri
Lanka will initially buy medicines worth Tk 2 crore. Bangladesh also requested the Sri Lankan
government to relax rules for Bangladeshi companies for participating in international bidding.
Page 14
buyers will be interested to buy our products. Besides, for the testing and
promotion purposes, 30-40% samples are required by the importing countries.
Therefore, understanding the reality the custom authority should allow at
least 30-40%samples to be sent to the importing countries without vat.
Lack of Bioequivalence test facility in our country is a major limitation of
pharmaceutical export:
Bioequivalence study of a product is a must for the registration of that product in many of
the moderately regulated and regulated foreign countries. At present, we dont have any
facilities for bioequivalence study. In order to register a product, a pharmaceutical
company has to carry out this test in foreign country by spending of a huge testing charge
(USD 50,000-100,000/product). For this reason, many pharmaceutical manufacturers
dont show interest to register their products in foreign countries that require
Bioequivalence study. It is relevant here to mention that BAPI and pharmaceutical
exporters first felt the necessity of having Bioequivalence test facility in our country and
they proposed and demanded to set up a modern Bioequivalence test center to the govt.
for the promotion of pharmaceutical export. But its a matter of great regret that still no
step has been taken by the govt. It hampers our overall export activities. The government
of Bangladesh should immediately set up an independent modern Bioequivalence test
laboratory in our country to gear up the overall export activities and to save huge foreign
currency that our pharmaceutical companies are currently expending. Alternatively, our
pharmaceutical manufacturers can make an agreement with International Center for
Diarrhoeal Diseases and Research in Bangladesh (ICDDRB)
and Bangladesh Council for Scientific and Industrial Research (BCSIR) for
Bioequivalence study with reasonable cost (USD 10,000-15,000/product) (I confidently
believe that from my practical observation that this charge will be ok for Bioequivalence
test of a product in any of the two international organization). These two scientific
organizations can develop enough facilities for Bioequivalence test of drugs if some
companies together/BAPI make an agreement with them. Their test result may be
internationally acceptable.
Page 15
Setting up of API Production Park may remarkably reduce the production cost of
medicines thus potentiality contributes to pharmaceutical export:
The major advancement of Bangladesh pharmaceutical sector has been occurred in the
production of finished products. At present, we are greatly dependent on import of raw
materials (more than 90% raw materials are imported) for the production of finished
drugs. Although our labor cost, white color labor cost, utility service charges, etc. are
very low compared to any other countries, only because of our dependent on imported
raw materials, the production cost of our finished products become higher than that of
India and China. Thats why, we cant compete with the Indians and Chinese companies
to offer export prize. Hence, the setting up of an Active Pharmaceutical Ingredient (API)
plant is very urgent issue. Due to the claim and urges of BAPI and pharmaceutical
business entrepreneurs, the govt. of Bangladesh has taken an initiative to establish an API
near Dhaka. Long time has already been passed after taking decision of establishing an
API but still the API has not yet come true. Its a matter of hope that the govt. is working
to establish the API park. We would like to thank the govt. to understand its necessity.
But the progress of API is not as rapid as it would be. Unless and otherwise, API has
been established, we would not be able to provide medicines with a reasonable and very
competitive price. Local production of raw materials in API will greatly contribute to our
pharmaceutical export to extend export volume, and also can potentially contribute to the
countrys economy. We are passing golden times due to patent exemption. We should
utilize this opportunity as many as we can. The government should give vigorous
attention to accelerate all the necessary activities within very short time to complete the
API Park.
Country image and production of substandard/fake drugs by some companies
hampering the acceptance of our products to international community:
Some small scale companies in our country are still producing substandard or spurious
drugs which damage the overall image of Bangladeshi products to the international
community, thus making our export difficult. BAPI can play an important role in this
regard by establishing an effective mechanism by their own arrangement or help the drug
controlling authority -Directorate General of Drug Administration (DGDA) or other
controlling
authority
of
the
government
to
control
the
production
of
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SWOT ANALYSIS:
A SWOT analysis identifies and assesses the strengths, weaknesses, opportunities and threats of
an organization faces. A SWOT analysis of the pharmaceutical industry illustrates to upper
management what the industry is excelling in, what improvements need to be made, where
growth is possible and what preemptive measures need to be taken to protect shareholder or
company value.
Factors affecting an organization can usually be classified as
Internal factors Strengths (S) & Weaknesses (W)
External factors Opportunities (O) &Threats (T)
A SWOT Analysis of pharmaceutical marketing is presented by the analysis of the present
situation of international market of Bangladesh:
SWOT ANALYSIS OF PHARMACEUTICAL MARKETING FOCUSING ON
INTERNATIONAL BUSINESS
STRENGTH
1) Some leading companies are producing
world-class products.
2) Products acceptable in the global
market as Quality Products
3) Wide range of products.
4) Price is competitive both in local and
foreign market.
5) Strong brand image created by the
market leaders parallel to MNCs.
6) Large pool of efficient and qualified
technical manpower at minimum cost.
7) Supportive
government
policy
attracting foreign investors.
8) Do not have to comply IPR until 2016.
9) Backward linkage support is being
created.
10) Large domestic market with reasonable
growth rate.
11) Oldest and one of the largest sector in
terms of capital investment
WEAKNESS
1)
2)
3)
4)
Page 19
OPPURTUNITIES
1) Huge potential to set-up
manufacturing plant for API or bulk
drugs.
2) Liberal government policy for the
foreign investors for joint venture
pharmaceuticals unit.
3) Research and development activities
may be initiated with external support.
4) Scope to take advantage of
compulsory licensing, parallel import
THREATS
1) The emergence of a patent regime in
2016.
2) India & China are big challenge.
3) Unfavorable regulations for
pharmaceutical export.
4) Lack of co-operation from foreign
mission of Bangladesh.
5) Insufficient activities DGDA to
facilitate export.
6) Negative Country Image.
Page 20
CONCLUSION:
The pharmaceutical sector has already been declared as the thrust sector by the government of
Bangladesh. Bangladesh has built a strong baseline and going towards the self-sufficiency for the
production of medicine. Meanwhile, some companies have started to produce vaccine, insulin,
anticancer drugs, etc. Our pharmaceutical industries are success in domestic market. Now, its
the time to grow our international market because we passing golden time getting the opportunity
of patent exemption by the TRIPS until 2016. In this article, I have discussed the urgent issues
need to give intimate attention immediately. Besides the above discussing points, providing cash
incentive by the govt. to the medicine exporters, like RMG may encourage pharmaceutical
exporters. International fair arrangement by Export Promotion Bureau (EPB) is a very effective
way to search buyers and to establish business in a new country. A lot of initiative have been
taken by BAPI in different times, such as, high level pharmaceuticals delegation team visited
foreign countries to explore export initiated by BAPI. This organization also upheld the demand
and urged to the government and other concerning authorities for API Park, Bioequivalence test
laboratory, Central drug testing laboratory, cash incentives, problems in remit transfer and
sample sending etc. But many issues are yet to resolve. We have already wasted our valuable
time and still loosing to build our infrastructure for export. We should complete our
infrastructure as soon as possible because TRIPs patent protection may be adopted to us after
2016. The government should really be attentive to remove all the obstacles and solve all the
problems to see pharmaceutical sector as a vital player in international market.
Page 21
REFERENCES:
PRIMARY DATA:
Primary data has been collected form discussions with some concerned executives
of different pharmaceutical companies:
Sk.Raquibur Rahman
Manger, International Marketing.
Advanced Chemical Industries Limited (ACI).
Mohammad Abul Basher Howlader
Marketing Manager.
Advanced Chemical Industries Limited (ACI).
Ashraful Islam
Senior Executive, International Marketing.
Incepta Pharmaceuticals Ltd.
Shaker Hussain
Officer International Business.
Radiant Pharmaceuticals (Licensee of F. Hoffmann-La Roche Ltd)
Page 22
SECONDARY DATA:
The SWOT analysis utilizes different secondary industry related data on export, import,
marketing, human resources, dumping etc.
Which are collected from:
Magazines: Medipharm
Newspaper: Daily Star
Reports: 1. Bangladesh Pharmaceuticals & Healthcare Report Q3 2014.
2. Pharmaceutical Sector of Bangladesh: Prospects and Challenges
Different websites:
http://www.assignmentpoint.com/science/pharmacy/assignment-on-pharmaceuticalssector-of-bangladesh.html
http://www.docstoc.com/docs/133506777/SWOT-Analysis-of-BangladeshPharmaceuticals-and-Healthcare-Industry-2012
http://www.espicom.com/bangladesh-pharmaceutical-market.html
http://www.academia.edu/5456867/SWOT_Analysis_Course_FNB_309_Submitted_By_
Strategic_Management_Submitted_By etc.
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