Daffodil International University
Industry Analysis of pharmaceutical industry.
Daffodil International University
MD. Tuammel Hossain
Pharmaceutical Industry of Bangladesh
Pharmaceutical is the core of Bangladesh’s Healthcare sector, and serves as one of the most important manufacturing industry. With a history since 1950s, the industry has now turned one of the most successful pharmaceuticals manufacturing industry among the developing countries. Presently, the industry meets 97% of local demand and exports to more than 80 countries. The industry has been experiencing robust growth over the last few years. A local industry supporting drug policy and effective regulatory framework, along with TRIPS relaxations are the key reasons for success of the industry. While the industry is achieving self-sufficiency, it yet procures 70% of raw materials from abroad. But developments are already taking place, with a number of firms now manufacturing raw materials locally. In addition, an API project has already been undertaken to accelerate the vertical integration within the industry. The industry has been expanding locally and internationally. Local market grew at 23% in 2010, while import reached USD 50 Million landmark. A number of firms got accreditations from USA, UK, Australia etc. developed markets, and are underway toward expansion into the developed markets. Locally, firms are preparing themselves for post 2016 scenario, when TRIPS will be implemented. Almost all the firms are upgrading their facilities and taking up precautions for post 2016 scenario, while aggressively expanding in both local and export markets. While TRIPS and import dependence on raw materials put challenges to the growing sector, prospect of the sector depends largely on the interactions among the players, regulatory bodies and the govt., whether they can meet up the requisites to continue growth of the sector while facing the challenges
Industry Analysis of pharmaceutical industry
Pharmaceuticals industry is the core of healthcare sector of Bangladesh. Being part of healthcare sector, its performance is related to demographic variables like population growth as well as economic growth and healthcare policy. In our country, with improving demographic characteristics, recent economic growth and favorable policy, the industry has seen good growth. The following table represents changes in our demographic variables, economic growth and performance of Pharmaceuticals industry -
Source - 1 World Bank, 2 IMS, 3 WTO, 4 National Budget 2011-12
A brief history
the history of Pharmaceuticals industry dates back to 1950s. Over the years, the industry has gone through some significant changes. After liberation in 1971, the industry was largely dominated by MNCs, and the country was very much import dependent. In 1982, through the formulation of national drug policy, and drug control ordinance, a defined guideline for the development of the industry was created. By then, 75% of the market was dominated by the MNCs, whereas the rest were shared by some 133 local firms. Since then, the local firms have established a stronger foothold, and the country has become from an import dependent to an active exporter of pharmaceuticals products. At 2010, top 5 MNCs have approximately 9.05% of the market share and 97% of total local demand is met through local production.
As per Global Industry Classification Standard...
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