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Presentation Topic : Problems and Prospect of Pharmaceutical Industries in Bangladesh.
History of Pharmaceutical Industry
The roots of the pharmaceutical industry lie back as far back as the middle ages.
But the industry as we understand it today really has its origins in the second half of the 19th century.
The origins of the Pharmaceutical Industry:The chemical industries (of the late nineteenth century) in
the upper Rhine Valley of Switzerland. The drag store was opened by Arabian Pharmacists in
Baghdad in 754 and many more was opened in Islamic country and Europe .
Arabian pharmacists opened the first documented drugstore:
Most of today's major pharmaceutical companies were founded in the late 19th and early 20th centuries.
Some Others:MAO InhibitorsChlorpromazine (Thomasine)Haldol (Haloperidol)Velum (diazepam)
- discovered in 1960,- marketed from 1963 ,
In 1964 The World Medical Association (WMA) issued its Declaration of Helsinki which set standards for clinical research and demanded
History of Pharmaceutical Industry in Bangladesh
Pharmaceutical Industry has grown in
Bangladesh in the last two decades at a considerable rate. The sector consistently
creates job opportunities for qualified people. Like all other sectors in
Bangladesh, the pharmaceutical industry was much neglected during Pakistan
regime. Most multinational companies had their production facilities in West Pakistan. For several years after
liberation, the government could not increase budgetary allocations for the
health sector. Millions of people had little access to essential life saving medicines.
In 1981, there were 166 licensed pharmaceutical manufacturers in the country. But in spite of having
166 local pharmaceutical production units, the country had to spend nearly Tk 300 million on importing finished medicine products. With the
promulgation of the Drug (Control) Ordinance of 1982 many medicinal products considered harmful, useless or unnecessary which got removed from the
market. In 2000, there were 261 unani, 161 Ayurveda, 76 homeopathic and biochemical
licensed manufacturing units. They produced medicines worth Tk 1.2 billion in 2000. One of the
major positive impacts of Drug (Control) Ordinance is the rapid development of local manufacturing
capability.
Contribution of Pharmaceutical Industry
on Our Economy
• Significant contribution on country's economy.
• Substantial development in pharmaceutical
sector enabled us to export our branded
generics in the international marketing domain.
• Healthy growth is encouraging the
pharmaceutical manufacturers towards research
and development for newer generics of quality
drugs at affordable prices.
• The creation of Active Pharmaceutical
Ingredient Park (API) is one of the most
significant parts of the pharmaceutical
industry as a whole.
• Bangladesh pharmaceutical market is
growing at a fast pace and has a bright
future indeed according to Business
Monitor International's .
Contribution of Pharmaceutical Industry on Our GDP
What is GDP?GDP stands for Gross Domestic Product. Gross domestic product is the market value of all officially recognized final goods and services produced within a country in a given period of time.
Contribution of pharmaceutical industries to GDP of Bangladesh
*exports medicines worth $60 million
FY10 FY11 FY12 FY13 FY14 FY150.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Contribution of pharmaceutical industries to GDP of Bangladesh
Problems of PharmaceuticalsIndustry
The Turnover rate of MR is very highCost of marketing hardly affect the price
of the medicineProfessionalism in marketing is not
achieved yet in BangladeshEffect of globalization has increased the
competition.Unstable political situation and different
types of violence .
PROBLEMS OF MARKETING
Problems of Export:Unstable political situation Problems of portIrresponsibility of customs officers
Shortage of powerLack of opportunity to supply the emergency
power
PROBLEMS OF POWER DEVELOPMENT:
Other Problems:Inadequate strength and limited capacity of
DTL & DDABig multinationals may come and take major
marketForeign competitors Illegal entrance of drugsAdvertisement of OTC (over-the-counter)
drugs
Problems of Pharmaceutical Industries in Bangladesh (According
to Experts)
Sales Rate (Core) Company Size
Over 300 Large Company
50-300 Medium Company
Under 50 Small Company
Problems of Medium & Small companies:
Competition:
•Unequal Competition: There are near about 250 Pharmaceutical companies in our country. Among these companies, only 30 companies own the 90% of the whole market share.
•Gross sales: Only 17 companies in our country have a sales rate more than 100 cores.
Following GMP procedures : If any Pharmaceutical Company want to maintain GMP(Good manufacturing practice), it must have to invest 100 core tk or more.
Customers are Doctor: Large company provide doctors with bonus, and other facilities like luxuries products, where the medium and small company cannot afford it.
Medical representative: Large companies appoint around 1200 medical representative, where medium company appoint 200 -300.
Problems of Large Company
•High cost of marketing products.•High cost of financing.•Turnover rate of medical representatives is very high.
Common Problems of Pharmaceutical Industries in Bangladesh
Manufacturing Problems: lack of Gas & power supply. Companies are not able to provide instant power supply, which hamper the production quality.
Industry Sector: Energy cost of industry is too high.
Bank interest rate: In our country bank loan interest rate is 18-20%. Where in abroad it’s only 3-4%.
Local Problems: •API Support.•Raw materials.•Regulatory body.•Drug tasting laboratory.
Export problems:
•Rule of Bangladesh bank is not in favour of pharma industry. •Advance payment is needed.•Banks are averse to allocate Dollar.•Have to face audit board.
Others:
•Bangladesh Drug Administration is not a global member.•Unethical activities by small company to sustain. •Strike hampers the distribution channel works.
Prospects of Pharmaceuticals Industry in Bangladesh
1. Prospects of Marketing:i) Marketing system is improving in this sector and proper
marketing may help a firm to achieve their goals. ii) For free and fair competitions marketing can play a major
role.iii) Marketing can be regarded one of the most important
weapons to face the challenges of open market economy.
2. Prospects of Foreign competition:i) Foreign competition made the country firms more eligible
to face challenges that arose after the year 2005.ii) The local firms will not face any rigorous problem in
foreign countries as they are accustomed in competition with foreign firms.
3. Prospects of Export:i) For surviving in the future, competitive environment is
necessary.ii) Competition reduces monopolistic attitude of the firms.
As a result the customers will be benefited by getting quality products.
4. Prospects of Customer Choices:i) By increasing quality more customers as well as market
share can be absorbed.ii) By producing rare drugs at home, the country can save
its foreign exchange.iii) By extensive promotional activity, customer choice can
be driven.
5. Prospects of Power Development:
i) By following all the rules and innovating alternative power supply source, this sector is entering the competitive market.
ii) Pharmaceuticals may open a big door of prospect in the foreign market.
Experts’ Recommendation for Pharmaceutical Industry in
Bangladesh:
Providing sufficient gas and electricity according to the demand.
Political stability is very much needed. Due to strike & other political unrests the marketing process is being interrupted & the distribution channel lose their natural speed.
80% of the raw materials of this industry are imported from foreign countries. If the raw materials can be produced sufficiently in the domestic level, the pharmaceutical companies will be able to supply according to the demand.
Upgrading the regulatory body to WHO standard. It will let Bangladesh enter into the global market and thus will increase the production a great deal.
Like India & other competitor countries, bank loan interest rates should be reduced for this industry.
If these recommendations can be implemented, the Pharmaceutical Industry of Bangladesh will be able to shine in its true sense.