‘Medicine prices will rise’ if Bangladesh reaches developing status

Reliance on imported APIs will challenge price cuts and export growth, says an expert

Bangladesh's transition out of the Least Developed Countries (LDC) bracket to a developing nation will bring several challenges for the pharmaceutical industry, sector insiders fear.

Speaking at a workshop in Dhaka on Monday, participants said certain benefits currently enjoyed by the industry will no longer be available post-graduation while competition with foreign companies is expected to intensify.

The event, titled “Journey of Bangladesh Pharmaceutical Industry”, was held in Tejgaon and jointly organised by the Bangladesh Association of Pharmaceutical Industries (BAPI) and the Bangladesh Health Reporters Forum.

Md Zakir Hossain, secretary general of BAPI, presented an overview of the sector and its current position.

He said: "Currently, Bangladesh's pharmaceutical industry benefits from several exemptions. Once we reach middle-income status, these will no longer apply.

“From then on, we must purchase [Active Pharmaceutical Ingredients] at prices set by the parent companies.

“This will drive up the price of medicines,” Zakir added. “To counter this, we must focus on domestic production of APIs instead of relying on imports.

“In addition, to manufacture patented drugs, we need to begin registering these medicines with the Directorate General of Drug Administration from now.”

Muhammad Halimuzzaman, treasurer of BAPI, said: “Producing medicines requires 400 types of raw materials.

“Currently, 21 companies in the country produce 41 types of essential APIs.”

“As a result, companies have to import 80 percent of their required APIs. This import dependency will make it harder to reduce the price of medicines and capture export markets."

M Mohibuz Zaman, chief executive officer of ACI HealthCare Limited, said: "In the pharmaceutical industry park in Munshiganj's Gazaria, 42 plots have been allocated to 27 companies.

“A total of 15 companies will begin production there while others will merge with existing firms."

He further highlighted the difficulty of API production. "Approval from four agencies is required to enter API production.

“We have repeatedly called for a one-stop service for these approvals, but the government has yet to take any action," Mohibuz added.