Pestle for Pharmaceuticals Company

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Bangladesh pharmaceutical market in 2011 stood at approximately US $ 800 million, which is very small when compared to the population base of the country, which currently stands at about 140 million. To put this number on a proper perspective, the total global pharmaceutical sale in 2011 was $600 billion. This is expected to grow about $730 billion in 2013. Of course the majority of the sale in 2011 was in brand products, the market segment where Bangladesh does not or is not expected to participate in the very near future. However today, the pharmaceutical companies in Bangladesh are one of the fastest growing sectors in the nation. Prior to post-liberation, the Multinational companies used to dominate the market but today this situation has been completely reversed. Now approximately 80% of the domestic pharmaceutical need is met by the local companies. In2004, according to IMS data, the pharmaceutical industry in Bangladesh grew by approximately 20%. Today, there are about 225 registered pharmaceutical manufacturer’s in Bangladesh. However, it is reasonable to assume that 75% to 80% of the revenues are generated by the top 10 to 15 companies. The same top 5% of the companies are also engaged in exporting finished products to 62 countries around the world. The total pharmaceutical export in 2010 was about $80 million compared to $60 million in the previous year. By any measure, these are very small numbers, particularly in a country that is allowed to manufacture patented drugs and export to the least developed countries (LCD) of the world. This exemption, with respect to the patent would extend into 2016 creating Avery favorable environment for both domestic and foreign investments.

HRPP OF CURE PHARMACEUTICAL

Experienced international businesses engage in political risk assessment, a systematic analysis of the political risks they face in foreign countries and any changes in the political environment that may adversely affect the value of a company’s business activities. Politically Bangladesh is now a stable country after decades of instability and coups.

Support of Government Bangladesh government regards the pharmaceutical industry as one of the key sector for foreign investment in the country. With strong government support Bangladesh is developing a robust manufacturing and technically experienced industrial base for this sector.

Issues General strikes by opposite political parties those caused huge loss to the pharmaceutical businesses and industries. The situation has improved a lot in past few years despite of very few occasions. Companies are still facing some corruption and bureaucracy issues when to doing business. For example, according to the World Bank report (2009) it requires 7 procedures and takes 44 days to start a business here. Despite some bureaucratic problems in overall the current political environment it’s friendly for Pharmaceutical industry.

HRPP OF CURE PHARMACEUTICAL

The global economic crisis still exists yet government reports still show that spend on healthcare per capital continues to grow. Will the current healthcare models exist tomorrow? The growth in homecare demonstrates how nursing services have moved to the private sector and have become a key business offering. The reduction in consumer disposable income will have an impact on health insurance models particularly where part payment is required. These economic pressures are seeing an increased growth in strategic buying groups who are forcing down prices. Increased pressure from shareholders has caused a consolidation of the industry: more mergers and acquisitions will take place over the coming years. When a company wants to do business in another country, it should have good knowledge on growth rate, inflation, unemployment, wages, income, stability, poverty and the like of that country. These factors of Bangladesh are analyzed in following sections and also compared with China, India, Pakistan and UK to get...
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