Business Analysis of Pharmaceutical Firms in Bangladesh: Problems and Prospects MD. ANAMUL HABIB* MD. ZAHEDUL ALAM** Abstract The aim of the study is to present the current scenario of the pharmaceutical industry in Bangladesh. Since inception, there was little consensus on the development of pharmaceutical policies best suited in a developing country such as Bangladesh. Here, the pharmaceutical industry developed rapidly from the 1980s after the introduction of Drug (Control) Ordinance-1982. Adequate infrastructure and use of trained manpower were two essential requisites for implementation of national pharmaceutical policies in Bangladesh. The country was importing significant amount of medicine and also raw materials for the industry from abroad. But the industry has started to export its products in foreign market, especially in the Middle East and Europe with great success. This study tries to identify the major problems of marketing, exporting, production and operations, quality control in the pharmaceutical sector and proposes strategies to overcome these problems, it also identifies the prospects of pharmaceutical industry in Bangladesh.
Keywords: Drug, Problem, Education, Health, Policy, Pharmaceutical, Deficit, Facilities, Executives. 1. INTRODUCTION
The pharmaceutical sector is one of the thrust sectors in Bangladesh. Before Liberation, there was hardly any pharmaceutical enterprise in Bangladesh (then East Pakistan). After several years of liberation, the government could not increase (in relative terms) budgetary allocations for the improvement of health sector. At that time, most of the people had little access to the essential lifesaving medicines. This sector started to improve from 1980s. The pharmaceutical industry has grown in the last two decades at a considerable rate (http://banglapedia). After the promulgation of Drug Control Ordinance-1982, the development of pharmaceuticals industry has accelerated. The skills and MD. Anamul Habib, Senior Lecturer, School of Business Studies, Southeast University, Dhaka. ** Md. Zahedul Alam, Assistant Professor of Marketing, Department of Business Administration, Northern University Bangladesh, Dhaka. *
Journal of Business and Technology (Dhaka)
knowledge of the professionals and innovative ideas of the people involved in this industry are the key factors for these developments. Due to recent development of this sector, the country is exporting medicines to global market including European coutnries and on the top of it, the industry has been supplying about 95 per cent of the domestic demand for medicines. (http://www.pharmadu.net). There are three drug manufacturing units under control of the Government of Bangladesh. Two of them are in Dhaka and another one is in Bogra. The name of these units is Essential Drug Company Ltd. (EDCL), which is operating as a public limited company under the Ministry of Health and Family Welfare. Essential Drug Company Limited produced medicines worth Tk. 964 million in 2000. The production rate of these companies is also increasing day by day. There are separate vaccines and large volume IV fluids production units under the Institute of Public Health (IPH) located in Dhaka. The medicines and other drugs like- vaccine of both Essential Drug Company Limited and Institute of Public Health are mostly used in government hospitals and institutions. In 2000, there were 261 unani, 161 ayurvedic, 76 homeopathic and bio-chemic licensed manufacturing units in Bangladesh. The total worth of their medicines was Tk 1.2 billion in 2000. One of the major positive impacts of Drug (Control) Ordinance-1982 is the rapid development of local manufacturing capability. In recent years, the country has achieved large volume of parental products, by which the country becomesself sufficient; huge volume of these products are also exported to other countries. The development of local manufacturing...