M.Pharm Project

Strategic marketing and planning to improve pharmaceutical marketing in Bangladesh

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Strategic Marketing and Planning To

Improve Pharmaceutical Marketing In

Bangladesh

A project report submitted to the Department of Pharmacy, University of Asia

Pacific, for partial fulfillment of the requirements for the degree of Master of

Science in Pharmaceutical Technology

Submitted By:

MD. Foysal Fuad Chowdhury

Registration No.: 15207067

Session: Spring 2016

Submission Date: 6th October, 2016

Department of Pharmacy

University of Asia Pacific


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Summary of study

The purpose of this study was to summarize the available evidence of the introduction,

pharmaceutical history & background, strategic planning and other factors influencing

pharmaceutical marketing and export prospects of pharmaceutical sector in Bangladesh. There

are several sectors in Bangladesh on which we can be proud of and undoubtedly, the

pharmaceutical sector is one of these sectors. It is one of Bangladesh’s success stories and one of

the most technologically advanced sectors currently in existence. This industry is matter of

substantial pride to the country. Skillful attitudes, knowledge and innovative ideas from the

professionals are the key reasons why this industry grew in the way it did. The domestic market

of Pharmaceutical products in Bangladesh has shown a tremendous growth over the last couple

of years. The success story of Bangladesh pharmaceutical sector is very pleasant. It had to travel

a long way to achieve the present prestigious position in domestic and international markets. By

now, 97% of country’s demand of medicines is produced locally mainly by national

pharmaceutical companies. The pharmaceutical sector of Bangladesh is expanding rapidly and

some companies have already certified by different international regulatory authorities like US-

FDA, UK-MHRA, Australia-TGA, EU, etc. for quality management and quality products

manufacturing. Bangladesh Pharmaceutical Industry is now heading towards self-sufficiency in

meeting the local demand. There are about 460 generics registered in Bangladesh. Out of these

460 generics, 120 are in the controlled category i.e. in the essential drug list. The remaining 340

generics are in the decontrolled category, The total number of brands /items that are registered in

Bangladesh is currently estimated to be 5,300, while the total number of dosage forms and

strengths are 8,300. The pricing and other competitive strategies of pharmaceutical companies

have been altered by revolutionary developments in information technology, new state drug

substitution laws, federal legislation, and the emergence of market institutions that include

health maintenance organizations (HMOs) and pharmacy benefit managers (PBMs). An

important and sometimes overlooked factor that distinguishes one company from another in

the pharmaceutical industry is strategic planning. Bangladesh’s pharmaceutical industry has

tremendous potential to grow and compete in the international market. This is a remarkable

achievement for the Bangladesh pharmaceutical industry as this makes ways for us to export

medicines to the US market known for stringent regulations and quality standards.


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TABLE OF CONTENTS

Serial No. Contents Page No.

1 Introduction

1-4

2 Pharmaceutical background and history 4

2.1 Size of the Bangladesh Pharmaceutical Market and its

Growth

5-6

2.2 The Reasons after Market Growth 6

2.3 Growth Projection 6-7

2.4 Key points of National Drug Policy of 1982 8

2.5 Essential Drugs’ List 8

2.6 The Bangladesh Association of Pharmaceutical Industries 8

3 Drug Regulatory Authorities in Bangladesh 9

3.1

The Directorate General of Drug Administration (DGDA) 9

3.2

The Pharmacy Council of Bangladesh (PCB) 9

4

Local Market Overview 10-13

4.1 Top three leading companies of the country 14-15

4.2 Top Drug Groups 15-16

5 Strategic planning and other factors influencing

pharmaceutical marketing

16-17


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5.1 Industry Size 18-19

5.2 Current Environment 19

5.3 Identification and analysis of the strategic planning,

promotional patterns and factors adopted by leading

pharmaceutical companies in Bangladesh

21

5.3.1 Product, Pricing and Promotion 22-23

5.3.2 Manufacturing and Production Strategy Consulting features 22-23

5.3.3 Complete analysis 24

5.4 Production Pricing 24

5.4.1 Pricing Strategy 25-26

5.4.2 Marketing Strategy and the Marketing Mix 26

5.4.3 Pricing Objectives 27

5.4.4 Penetration pricing 28

5.4.5 Pricing Methods 29

5.4.6 Price Discounts 29-30

6 Competitive strategies of pharmaceutical companies 30-31

6.1 Influential factors on prescription preparation by doctors: a

survey conducted on practicing doctors and medical

representatives in Bangladesh

31

6.2 Materials and Methods 32


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6.3 Results and Discussion 32-33

6.4 Comparative analysis of subjective and objective responses 34-36

7 Export prospects of pharmaceuticals sector in Bangladesh 37-38

7.1 Foreign Markets 38

7.2 International Privilege 38

7.3 Where the industry is right now 38-39

7.4 Export Scenario 39

7.5 Barriers in Export Sector 39-40

7.6 Opportunities in Pharmaceutical Sector 40

7.7 Support needs to buster export 41

8 Market insight: How Bangladesh pharmaceutical sector

performed in 2015

41-42

8.1 Export scenario 42

8.2 Domestic competition 43

8.3 MNCs 43

8.4 Backward integration 44

8.5 TRIPS 44

8.6 Beximco pharma secures FDA approval 44-45

9 Conclusion 45-46


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LIST OF FIGURE

Serial No. Name of Figure Page No.

Figure 1 Bangladesh’s Largest Pharma Companies (by sales) 19

Figure 2 Manufacturing Strategy 22

Figure 3 Manufacturing and Production Strategy 23

Figure 4 Comparative response (in percentage) in consideration of

company image during prescribing medications to patients

34


regular promotion during prescribing medications to

patients

34


availability of brands during prescribing medications to

patients

34


low price of medicine during prescribing medications to

patients

35


medical representative’s improvisation during prescribing

medications to patients

35


easy brand name during prescribing medications to patients

35

Figure 10 Comparative response (in percentage) in consideration of 36


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international certification of company during prescribing

medications to patients


promotional tools during prescribing medications to

patients

36


scientific information during prescribing medications to

patients

36

Figure 13 Local Sales (Source: IMS /4th quarter report – data

visuals by EBL Securities)

42

Figure 14 Exports (Source: IMS /4th quarter report – data visuals by

EBL Securities)

42

LIST OF TABLE

Serial No. Name of Table Page No.

Table 1 Healthcare Expenditure as % of GDP 6

Table 2 Bangladesh’s largest Pharma Companies (by sales July’15) 18

Table 3 Pricing Policy (Consulting Buyers) 24-25

Table 4 Market Size, Market Share and Growth of Top Companies 43

Table 5 Market Size, Market Share and Growth of Top MNC’s 43


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1. Introduction

The Pharmaceutical Industry is one of the world’s principal industries owed to worldwide

revenues of around US$2.8 trillion. Pharmaceutical Industry has seen major transforms in the

current years that leave new load on payers, providers and manufacturers. Customers now

demand the same choice and convenience from pharmaceutical industry that they find in other

segment. (Saxena, 2012)

There was hardly any Pharmaceutical enterprise before liberation in Bangladesh (then East

Pakistan). After several years of liberation, the government could not increase 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. Today

Pharmaceutical Sector has become an obligatory part of health care system around the world.

Historically pharmaceuticals have played a vital role in the human development by improving

the quality of life and reducing the time spent in the hospitals. Due to its direct link with the

welfare and wellbeing of human beings Pharmaceutical Industry is of strategic importance for

the development of a healthy and productive nation. Today, Pharmaceutical Industry is

considered to be one of the largest and rapidly growing global industries. It is a major source of

employment generation and foreign exchange earnings for many countries around the globe.

(Sesric, 2011)

However, despite all these extraordinary achievements it’s a harsh reality that every year

millions of people die across the world, mostly in low income developing countries, due to

unavailability and inaccessibility of necessary medicines. According to the World Health

Organization (WHO), on average, 30% of the world population lacks access to life-saving

medicines; whereas, in some countries in Asia and Africa, the number may be as high as 50%.

(Roger, 2008)

The domestic market of Pharmaceutical products in Bangladesh has shown a tremendous growth

over the last couple of years. There has been a marked value-wise growth of the market -- at the

rate of 23.59% in 2011 over that of 2010, according to the data released by IMS Health

Bangladesh. According to the IMS, the size of Bangladesh's domestic drug market was $686


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million in 2008, $797 million in 2009, $977 million in 2010, and it reached US $1136 million in

2011.Now in Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors

within the country's economy. After the promulgation of Drug Control Ordinance 1982, the

development of this sector was accelerated. The professional knowledge, thoughts and

innovative ideas of the pharmaceutical professionals working in this sector are the key factors for

these developments. Due to recent development of this sector it is exporting medicines to global

market including European market. This sector is also providing 97% of the total medicine

requirement of the local market. Leading pharmaceutical companies are expanding their business

with the aim to expand export market. This research may help the exacting authority to be more

watchful about this sector. (Siddique, 2012)

There are several sectors in Bangladesh on which we can be proud of and undoubtedly, the

pharmaceutical sector is one of these sectors. It is one of Bangladesh’s success stories and one of

the most technologically advanced sectors currently in existence. This industry is matter of

substantial pride to the country. Skillful attitudes, knowledge and innovative ideas from the

professionals are the key reasons why this industry grew in the way it did.The success story of

Bangladesh pharmaceutical sector is very pleasant. It had to travel a long way to achieve the

present prestigious position in domestic and international markets. By now, 97% of country’s

demand of medicines is produced locally mainly by national pharmaceutical companies. The

pharmaceutical sector of Bangladesh is expanding rapidly and some companies have already

certified by different international regulatory authorities like UK-MHRA, Australia-TGA, EU,

etc. for quality management and quality products manufacturing. Moreover, few companies are

on the road to achieve US-FDA approval. According to the information of the Director General

of Drug Administration of Bangladesh (DGDA), there are 263 Allopathic drug manufacturing

companies in Bangladesh; 209 of which are functional, 29 companies are non-functional and 25

companies are suspended in status. Pharmaceutical export is contributing to the GDP of the

country and every year this contribution is positively growing In the meantime, Pharma sector

has become the 2nd largest potential sector in Bangladesh to earn foreign currency. At present,

about 30 pharmaceutical companies have started their export activities.

Many smaller companies are on the verge of entering highly regulated overseas markets. Bearing


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in mind its successful past endeavors, the industry has the ability to establish itself in mass

exportation. (Anamul and Zahedul, 2011)

The pharmaceuticals sector is a high-technology and knowledge-intensive industry in

Bangladesh. The industry has two-tier structure. The largest firm accounts for the majority of the

R&D investment in the industry and hold the majority of patents. There are a large number of

smaller firms producing mostly for local markets. The pharmaceuticals industry is heavily

regulated. Once a product is brought to market, pharmaceuticals companies spend heavily on

marketing and promotion. The larger drug companies maintain a large sales force, which makes

direct regular contact with individual prescribing physicians and other pharmaceuticals decision

makers. The money spent on marketing is huge. Pharmaceuticals marketing efforts are not only

directed at physicians and consumers; drug companies have also sought to directly influence

pharmacist, in some cases paying pharmacist to induce customers to change their drug

consumption habits.

The nature of competition in this industry differs between the two sets of firms. The second tier

of firms holds fewer patents and relies primarily on manufacturing off patent generic medicines

or patent medicines under license. Competition between these firms takes the conventional form

of competition on price, cost efficiency and quality. In contrast, a few large research-based

pharmaceutical companies invest heavily in R&D and hold the bulk of the patents, and can often

enjoy substantial market power while these patents are in force. For these companies,

competition is not primarily on the basis of price, but rather on the basis of marketing and

innovation. These companies compete to develop entirely new drugs which treat new medical

conditions, improve upon existing drugs, or serve as substitute for existing patented drugs. Some

large pharmaceutical companies in this tier export and compete in international markets.

(Bhuiyan et al., 2014)

The scenario of pharmaceutical industry can be depicted in two parts-before the Drug policy

ordinance, 1982 and after the Drug policy ordinance, 1982. Before the ordinance there were 177

pharmaceutical companies in the country but local production is used to be dominated by

multinational drug companies which manufactured 75% of total production. 25 medium sized


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national companies manufactured about 15% of total production. 133 small local based

companies produced the remaining 10%. The multinational companies were fully armed with

modern technology for producing sophisticated essential drugs, but they were only engaged,

large extent, in formulation of simple drugs including many useless products. At that time, the

unregulated drug market of the country had very little favorable conditions for pharmaceuticals

to over price their products. Near monopoly market conditions mean that local firms could not

compete effectively with these multinational market tycoons.

A great change was noticeable in the pharmaceutical industry after the drug policy ordinance of

1982. The total national production of pharmaceuticals has risen by a substantial 63%; the value

of essential drugs made in national factories has gone up to 140% over the four years. At present

there are around 300 national & multinational based pharmaceutical companies in Bangladesh.

(Sarker, 2011)

2. Pharmaceutical background and history

With a history since 1950s pharmaceutical industry has gone through noteworthy changes. This

industry was largely conquered by multinational companies, and it was very much reliant on

import. A defined rule for the development of the industry was formed through the formulation

of national drug policy, and drug control ordinance in 1982. Next to follow by, MNCs dominated

the market 75% and 133 local firms shared the rest one. Since then, the local firms have

recognized a stronger footing, and Bangladesh has become a vigorous exporter from import

dependent country. (Haroon, 2012)

2.1 Size of the Bangladesh Pharmaceutical Market and its Growth

The size of the retail market reached BDT 84.0 billion (US$ 1.136 billion) as on 2011 based on

IMS health Bangladesh (Haroon, 2012). The report additionally stated that, retail sales in

domestic market achieved 23.59% growth in 2011 which is following 23.8% and 16.8% growth

in 2010 and 2009 respectively. This industry has an annual growth rate of 10.2% during the

fiscal year 2002. The values fell by 4.3% in 2003. The lower growth rate showed in 2003 and


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2004 is largely because of country’s economic recession. Again the growth rate increased by 9%

in 2005. The growth rate of 2005 was 17.5%. In recent times the growth rate has been literally

doubled which is 23.59% in 2011.Recently published Bangladesh Pharmaceutical Index,

3Q’2011 shows that Bangladesh has a tk. 8,000 Cr market. And there are no multinational

companies in top ten lists of pharmaceutical companies. Local manufactured medicine is playing

important role to drive doctor prescription for strong pharmaceutical marketing skill and

product quality. There are only about 20% people in rural area are receiving nursing and medical

care parting the rest of the rural market utilizable because there is a big market lying ahead of

the existing market in the rural areas. The market will be engorged automatically when the

whole population will be under healthcare. It is likely that the total market size (including rural

market) is projected to be over BDT 90.0 billion at nearby. (Haroon, 2012)

2.2 The Reasons after Market Growth

The following datas shows some selected health indicators for Bangladesh. Most of the

indicators improved over the last decade which is among some of the factors that contributed to

the growth of the sector.

There has been an ongoing demographic move - life expectancy improved from 64.7 in

2000 to 68.94 in 2011 which to see the amplified health awareness among the people.

Also the income level of the population increased over the last decade which allowed

them to spend more for healthcare.

The foundation was also stumpy as healthcare expenditure was less than 3% of GDP in

2000 with total pharmaceutical sector size of BDT 24.5 billion only in that year and now

it is 3.72% with a sector size of BDT 84 billion in 2011.

Emergence of Private sector contribution. In the year of 2000 it was 1.72% of the total

GDP but now it has become 2.36% of the total GDP in 2011. A number of top category

hospitals in progress operating which includes Apollo Hospitals, Square Hospitals,

United Hospitals and others. Due to their quality service these hospitals became very

admired with the mass population; they have been a chief issue contributing to increased


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healthcare expenditure.

Development in private expenditure was the most important reason behind fall in public

% of expenditure as can seen a rise in a descending order in expenditure of the public

healthcare expenditure as a % of total healthcare expenditure from the last decade, there

has been increased expenditure in absolute terms which is from 39% in the year of 2000,

again a drop in 2005 at 34.9% and at last a modest climb in 2011 which is 36.58%.

Health expenditure per capita almost tripled in the last decade from 9.1 to 27, indicating

people’s compliance to spend more to stay healthy. Over the last decade income base of

the population has been upward. (Habib and Alam, 2011)

2.3 Growth Projection

Table 1: Healthcare Expenditure as % of GDP

Region 2011 2010 2009 2005 2000

USA 17.9% 17.6% 16.21%

14.72% 13.41%

World 10.1% 10.0% 10.03% 9.73% 9.23%

UK 9.3% 9.6% 9.34% 8.25% 7.04%

Japan 9.3% 9.2% 8.35% 8.16% 7.69%

Afghanistan 9.6% 10.4% 7.36% 8.76% 8.29%

Nigeria 5.3% 5.4% 5.82% 6.60% 4.56%


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Nepal 5.4% 5.1% 5.81% 5.91% 5.06%

Thailand 4.1% 3.9% 4.31% 3.55% 3.40%

India 3.9% 3.7% 4.17% 4.03% 4.61%

Bangladesh 3.7% 3.7% 3.35% 3.21% 2.82%

Sri Lanka 3.4% 3.5% 3.96% 4.04% 3.72%

Pakistan 2.5% 2.8% 2.62% 2.78% 3.02%

Table shows that comparison of Bangladesh with other neighboring countries and also with

some other developed countries in terms of healthcare expenditure as a % of GDP. Bangladesh is

a way below the list of countries except Sri Lanka and Pakistan.

Bangladesh has achieved 6.7% GDP growth rate over the last decade. With a vision to

attaindouble-digit growth within 2018, the current government has set target to achieve a higher

growth rate. So, it is expected that the actual growth rate in GDP will be 7% within 5 years and

the healthcare expenditure is expected to be more than that estimated value of around 17%. Now,

the retail Pharmaceutical market size is about 1% of GDP and health expenditure is about 3.7%

of GDP. As a result, the Pharmaceutical sector revenue accounts for almost 30% of the

healthcare expenditure. If this situation continues over the coming five years, pharmaceutical

revenue will also mature at par at 16.67% annually over the next five years. (Habib and Alam,

2011)

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


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has grown in the last two decades at a considerable rate.

Right after liberation war three fourth of the pharmaceutical industries was dominated by

multinational companies. The National Drug Policy (NDP) in 1982 and 2005 has major impact

in the development and growth of the Bangladesh pharmaceutical industry.

The need for NDP was very evident. Almost all the multinational companies were producing

simple and non-essential drugs in Bangladesh like vitamins mixture or cough syrups. They used

to import their raw materials from abroad at high prices. (Habib and Alam, 2011)

There was a need for vast quantity of essential, useful and economic drugs in Bangladesh. It was

essential and important for Bangladesh to introduce a drug policy for the betterment of national

health by availing international standard medicine in lower cost to Bangladeshi people. Precisely,

multinational companies were prevented to reduce their unessential drugs production and

discouraged to import raw material at high process. (ShariatUllah and Razzak, 2006)

2.4 Key points of National Drug Policy of 1982:

To provide administrative and legislative support for ensuring quality of essential drugs

which are relevant to the national health need.

To reduce the price of medicine by ensuring the lowest competitive price.

To eliminate non-essential medicine from the market.

To promote production of local drug and raw materials.

To develop proper drug monitoring and information system to prevent wasteful misuse

and to ensure the proper utilization of the drugs.

To ensure GMP and qualified pharmacist in manufacturing companies.


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As NDP 1982 implemented, most multinational companies sold their business to local

pharmaceutical. This fueled to the evolution of the local pharmaceutical sectors. According to

the Directorate General of Drug Administration (DGDA) website, the value of the locally

produced drug was 175 crore in 1981 that increased to 325 crore by 1985. (ShariatUllah and

Razzak, 2006)

2.5 Essential Drugs’ List: Under the Drug (Control) Ordinance 1982, the Government

determines Maximum Retail Prices (MRP) of 117 essential drug chemical substances. This price

determination is only for the local producer companies and still now the multinational

organizations are determining their price by their own way.

2.6 The Bangladesh Association of Pharmaceutical Industries – BAPI: BAPI, (Bangladesh

Aushad Shilpa Samity in Bengali), established in 1972 with just 33 members, has been playing a

very vital role for development of this sector. Today, BAPI is a very strong organization having

as many as 144 companies as its members.

3. Drug Regulatory Authorities in Bangladesh

A regulatory agency is a public authority or government agency responsible for exercising

autonomous authority over some area of human activity in a regulatory or supervisory capacity.

An independent regulatory agency is a regulatory agency that is independent from other branches

or arms of the government. Two organizations regulate drugs and pharmacies in Bangladesh, one

governmental and one semi-government, which are:

The Directorate General of Drug Administration (DGDA)

The Pharmacy Council of Bangladesh (PCB)

3.1 The Directorate General of Drug Administration (DGDA): DGDA is the drug regulatory

authority of Bangladesh, which is under the Ministry of Health and Family Welfare. DGDA

regulates all activities related to import and export of raw materials, packaging materials,

http://en.wikipedia.org/wiki/Public_benefit_corporation

http://en.wikipedia.org/wiki/Government_agency

http://en.wikipedia.org/wiki/Regulation

http://en.wikipedia.org/wiki/Supervisor


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production, sale, pricing, licensing, registration, etc. of all kinds of medicine including those of

Ayurvedic, Unani, and Herbal and Homoeopathic systems.

3.2 The Pharmacy Council of Bangladesh (PCB): PCB was established under the Pharmacy

Ordinance in 1976 to control pharmacy practice in Bangladesh.

The Bangladesh Pharmaceutical Society is affiliated with international organizations

International Pharmaceutical Federation and Commonwealth Pharmaceutical Association. The

National Drug Policy (2005) states that the WHO’s current Good Manufacturing Practices

(GMP) should be strictly followed and that manufacturing units will be regularly inspected by

the DDA. Other key features of regulation are restrictions on imported drugs; a ban on the

production in Bangladesh of around 1,700 drugs which are considered non-essential or harmful;

and strict price controls, affecting some 117 principal medicines.

The pharmaceutical industry in Bangladesh is one of the most developed hi-tech sectors within

the country's economy. In 2000, there were 210 licensed allopathic drug-manufacturing units in

the country, out of which only 173 were in active production; others were either closed down on

their own or suspended by the licensing authority for drugs due to non-compliance to good

manufacturing practices or drug laws. Now about 300 pharmaceutical companies are operating at

the moment. The industry manufactured about 5,600 brands of medicines in different dosage

forms. There were, however, 1,495 wholesale drug license holders and about 37,700 retail drug

license holders in Bangladesh.

After the promulgation of Drug Control Ordinance - 1982, the development of this sector was

accelerated. The professional knowledge, thoughts and innovative ideas of the pharmaceutical

professionals working in this sector are the key factors for this development. Due to recent

development of this sector, the industry is exporting medicines to global markets, including the

European market. This sector is also providing 97% of the total medicine requirement of the

local market. Some of the companies produce insulin, hormones, and anticancer drugs, which

were not previously produced in Bangladesh. Leading pharmaceutical companies are expanding

their business with the aim to expand into the export market. Recently, a few new industries have

been established with high tech equipment and professionals to enhance the strength of this

sector. (Bhuiyan et al., 2014)

http://en.wikipedia.org/wiki/International_Pharmaceutical_Federation

http://en.wikipedia.org/wiki/International_Pharmaceutical_Federation

http://en.wikipedia.org/w/index.php?title=Commonwealth_Pharmaceutical_Association&action=edit&redlink=1

http://en.wikipedia.org/wiki/Pharmaceutical_industry

http://en.wikipedia.org/wiki/Bangladesh

http://en.wikipedia.org/wiki/Allopathic_medicine

http://en.wikipedia.org/wiki/Good_manufacturing_practice




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4. Local Market Overview

The Bangladesh pharmaceutical marketplace is predominantly a branded generic marketplace.

Pharmaceutical firms in Bangladesh can either sell to the private sector pharmacies, to the

government and its public health care facilities, or to international organizations operating in

Bangladesh (e.g. UNICEF).

Bangladesh pharmaceutical industry is mainly dominated by domestic manufacturers. Of the

total pharmaceutical market of Bangladesh, the local companies are enjoying a market share

reaching around 97%, while the MNCs are having a poor market share. Out of the top ten

pharmaceutical companies in Bangladesh, all are local pharmaceutical companies. The top two

domestic manufacturers, namely Square and Incepta Pharma are having a combined market share

of more than 30% of the total pharmaceutical market of the country.

Bangladesh Association of Pharmaceutical Industries (BAPI) was instituted in 1972, since then

BAPI playing a pivotal role in shaping up the industry. Association's member include large,

medium, small, national and foreign companies who together are responsible for manufacturing

97% of the country's pharmaceutical production. (Bhuiyan et al., 2014)

Here are the names of the pharmaceutical companies of Bangladesh:

Square Pharmaceuticals

Incepta Pharmaceuticals

Beximco Pharmaceuticals

Opsonin Pharma

Renata

Eskayef Bangladesh


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ACI

Acme Pharmaceutical

Aristopharma

Drug International

Sanofi-Aventis Bangladesh Ltd

GlaxoSmithKline(GSK) Bangladesh Limited

Orion Pharma Ltd

Novo Nordisk

Healthcare Pharmaceuticals Limited

General Pharmaceuticals Ltd

Sandoz (generic pharmaceuticals division of Novartis)

Popular Pharmaceuticals Ltd. (PPL)

Novartis (Bangladesh) Limited

IBN SINA Pharmaceutical Industry Ltd. (IPI)

Nuvista Pharma Limited


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UniMed UniHealth Pharma Ltd

Sun Pharmaceutical (Bangladesh) Ltd

Globe Pharmaceuticals Ltd

BIOPHARMA Ltd

Roche Bangladesh Ltd

Radiant Pharmaceuticals Ltd

Pacific Pharmaceuticals Ltd

Jayson Pharmaceuticals Ltd

BEACON Pharmaceutical Limited

Social Marketing Company (SMC)

Orion Infusion Ltd

Kemiko Pharmaceuticals Ltd

NAVANA Pharmaceuticals Ltd

Delta Pharma Ltd

Servier Bangladesh


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SOMATEC Pharmaceuticals Ltd

Rangs Pharmaceuticals Ltd

Libra Pharmaceuticals Ltd

ALCO Pharma Ltd

Apex Pharma Ltd

Pharmadesh Laboratories Ltd

Silva Pharmaceuticals Ltd

Medimpex Bangladesh

Edruc Limited

Ziska Pharmaceuticals Ltd

White Horse Pharmaceuticals

RAK Pharmaceuticals Pvt. Ltd

Asiatic Laboratories Ltd

4.1 Here is a brief description of top three leading companies of the country:


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Square Pharmaceuticals Ltd.: It is a public limited pharmaceutical company based in

Bangladesh. It is part of the SQUARE Group of Companies. The company was founded in 1958

by Samson H. Chowdhury along with three of his friends as a private firm. It went public in

1991 and is currently listed on the Dhaka Stock Exchange. Square Pharmaceuticals Ltd., the

flagship company, is holding the strong leadership position in the pharmaceutical industry of

Bangladesh since 1985 and it has been continuously in the 1st position among all national and

multinational companies since 1985. Square Pharmaceuticals Ltd. is now on its way to becoming

a high performance global player. (Siddique, 2012)

Incepta Pharmaceuticals Limited: This is a pharmaceutical company based in Dhaka,

Bangladesh, which manufactures and markets medicinal drugs in a variety of therapeutic

classes. Incepta Pharmaceuticals Ltd. is one of the leading pharmaceutical companies in

Bangladesh established in 1999. The company has a very big manufacturing facility located at

Zirabo, Savar, 35 kilometer away from the center of the capital city Dhaka. Since its inception

Incepta has been launching new and innovative products. The company produces various types

of dosage forms which include tablets, capsules, oral liquids, ampoules, dry powder vials,

powder for suspension, nasal sprays, eye drops, creams, ointments, lotions, gels, prefilled

syringes, liquid filled hard gelatin capsules, lyophilized injections, human vaccine etc. Beyond

the manufacture of medications, Incepta also conducts research and development in order to

fulfill unmet demand of the medical community. The company sells its products in Bangladesh

and also started to begin exporting to both developed and developing countries around the world.

(Siddique, 2012)

Beximco Pharmaceuticals Ltd: Beximco Pharma, is a part of the Beximco Group of

Companies. Beximco Pharma was founded in 1976 and started operations in 1980,

manufacturing products under the licenses of Bayer AG of Germany and Upjohn Inc. of USA.

It has now grown to become a leading pharmaceutical company in Bangladesh, and it supplies

more than 10% of country's total medicinal needs. Today Beximco Pharma manufactures and

markets its own branded generics for several diseases including AIDS, cancer, asthma,

hypertension, and diabetes for both national and international markets. Beximco Pharma

http://en.wikipedia.org/wiki/Public_limited_company

http://en.wikipedia.org/wiki/Pharmaceutical_company



http://en.wikipedia.org/w/index.php?title=Square_%28conglomerate%29&action=edit&redlink=1

http://en.wikipedia.org/wiki/Samson_H._Chowdhury

http://en.wikipedia.org/wiki/Dhaka_Stock_Exchange

http://en.wikipedia.org/wiki/Pharmaceutical_company

http://en.wikipedia.org/wiki/Dhaka



http://en.wikipedia.org/wiki/Drugs

http://en.wikipedia.org/wiki/Beximco

http://en.wikipedia.org/wiki/Bayer

http://en.wikipedia.org/wiki/Germany

http://en.wikipedia.org/wiki/Upjohn

http://en.wikipedia.org/wiki/USA

http://en.wikipedia.org/wiki/Generic_drug

http://en.wikipedia.org/wiki/AIDS

http://en.wikipedia.org/wiki/Cancer

http://en.wikipedia.org/wiki/Asthma

http://en.wikipedia.org/wiki/Hypertension

http://en.wikipedia.org/wiki/Hypertension

http://en.wikipedia.org/wiki/Diabetes


23 | P a g e

manufacturing facilities are spread across a 20-acre (81,000 m2) site located in Tongi,

Bangladesh. The facilities consist of a number of purpose-built plants, including a new Oral

Solid Dosage (OSD) plant. The site includes manufacturing facilities as well as a research

laboratory and a number of warehouses. The plant and machinery of the facilities were designed,

produced and installed by partners from Germany, Switzerland, Sweden, Italy and the United

Kingdom, amongst others. (Siddique, 2012)

4.2 Top Drug Groups

Proton-pump inhibitors (PPIs): These are a group of drugs whose main action is a pronounced

and long-lasting reduction of gastric acid production. They are the most potent inhibitors of acid

secretion available. The group followed and has largely superseded another group of

pharmaceuticals with similar effects, but a different mode of action, called H2-receptor

antagonists. These drugs are among the most widely sold drugs in Bangladesh, and are generally

considered effective. (Sarker, 2011)

These drugs are used in the treatment of many conditions, such as:

• Dyspepsia

• Peptic ulcer disease

• Gastroesophageal reflux disease (GERD or GORD)

• Laryngopharyngeal reflux

• Barrett's esophagus

• Eosinophilic esophagitis

• Stress gastritis prevention

http://en.wikipedia.org/wiki/Dhaka,_Bangladesh



http://en.wikipedia.org/wiki/Tablet_%28pharmacy%29



http://en.wikipedia.org/wiki/Germany

http://en.wikipedia.org/wiki/Switzerland

http://en.wikipedia.org/wiki/Sweden

http://en.wikipedia.org/wiki/Italy

http://en.wikipedia.org/wiki/United_Kingdom



http://en.wikipedia.org/wiki/Medication

http://en.wikipedia.org/wiki/Gastric_acid

http://en.wikipedia.org/wiki/Pharmacology

http://en.wikipedia.org/wiki/Pharmacology

http://en.wikipedia.org/wiki/H2-receptor_antagonist



http://en.wikipedia.org/wiki/Dyspepsia

http://en.wikipedia.org/wiki/Peptic_ulcer

http://en.wikipedia.org/wiki/Gastroesophageal_reflux_disease

http://en.wikipedia.org/wiki/Laryngopharyngeal_reflux

http://en.wikipedia.org/wiki/Barrett%27s_esophagus

http://en.wikipedia.org/wiki/Eosinophilic_esophagitis

http://en.wikipedia.org/wiki/Gastritis


24 | P a g e

• Gastrinomas and other conditions that cause hypersecretion of acid

• Zollinger-Ellison syndrome

Specialty professional organizations recommend that people take the lowest effective dose

possible to achieve the desired therapeutic result when using proton pump inhibitors to treat

gastro esophageal reflux disease long-term.

Antibiotics: An antibiotic is an agent that either kills or inhibits the growth of a microorganism.

These include, for example, the beta-lactam antibiotics, which include the penicillins, the

cephalosporins, and the carbapenems, aminoglycosides, sulfonamides, the quinolones, and the

oxazolidinones.

Antipyretics: These are drugs that reduce fever. Antipyretics cause the hypothalamus to

override an interleukin-induced increase in temperature. The body then works to lower the

temperature, resulting in a reduction in fever. Most antipyretic medications have other purposes.

The most common antipyretic in Bangladesh is Paracetamol. Non-steroidal anti-inflammatory

drugs (NSAIDs) are antipyretic, anti-inflammatory, and pain relievers.In Bangladesh there has

been huge demand for PPIs, antibiotics and anti-pyretics. Thus these drugs comprise the top ten

pharmaceutical products for the country. The recent IMS data exhibits the top ten medicines for

Bangladeshi market. (Sarker, 2011)

5. Strategic planning and other factors influencing pharmaceutical marketing

In Bangladesh Pharmaceutical sector is one of the most developed hi tech sector

which is contributing in the country's economy. After the promulgation of Drug

Control Ordinance - 1982, the development of this sector was accelerated. The

professional knowledge, thoughts and innovative ideas of the pharmacists working in

this sector are the key factors for this development. Due to recent development of this

sector we are exporting medicines to global market including European market. This

sector is also providing 95% of the total medicine requirement of the local market.

http://en.wikipedia.org/wiki/Gastrinoma

http://en.wikipedia.org/wiki/Zollinger-Ellison_syndrome

http://en.wikipedia.org/wiki/Specialty_%28medicine%29

http://en.wikipedia.org/wiki/Professional_organizations

http://en.wikipedia.org/wiki/Microorganism

http://en.wikipedia.org/wiki/Beta-lactam_antibiotics

http://en.wikipedia.org/wiki/Penicillin

http://en.wikipedia.org/wiki/Cephalosporin

http://en.wikipedia.org/wiki/Cephalosporin

http://en.wikipedia.org/wiki/Carbapenem

http://en.wikipedia.org/wiki/Aminoglycoside

http://en.wikipedia.org/wiki/Sulfonamide_%28medicine%29

http://en.wikipedia.org/wiki/Quinolone

http://en.wikipedia.org/wiki/Oxazolidinone

http://en.wikipedia.org/wiki/Oxazolidinone

http://en.wikipedia.org/wiki/Drug

http://en.wikipedia.org/wiki/Fever

http://en.wikipedia.org/wiki/Hypothalamus

http://en.wikipedia.org/wiki/Interleukin

http://en.wikipedia.org/wiki/Non-steroidal_anti-inflammatory_drugs

http://en.wikipedia.org/wiki/Non-steroidal_anti-inflammatory_drugs


25 | P a g e

Leading Pharmaceutical Companies are expanding their business with the aim to

expand export market. Recently few new industries have been established with hi tech

equipments and professionals which will enhance the strength of this sector.

There are several sectors on which Bangladesh can be proud of and undoubtedly the

pharmaceutical sector is one of these sectors, rather it is the sector, which is the

second-largest contributor to the government exchequer. There are about 231 companies in

this sector and the approximate total market size is about Taka 76,500 million per year of which

about 94% of the total requirement of medicines is created by the local companies and the rest

6% is imported. The imported drugs mainly comprise of the cancer drugs, vaccines for

viral diseases, hormones etc. (Rahman, 2015)

Bangladesh Pharmaceutical Industry is now heading towards self-sufficiency in meeting the

local demand. The industry is the second highest contributor to the national exchequer after

garments, and it is the largest white-collar intensive employment sector of the country. There

are about 460 generics registered in Bangladesh. Out of these 460 generics, 120 are in the

controlled category i.e. in the essential drug list. The remaining 340 generics are in the

decontrolled category, The total number of brands /items that are registered in Bangladesh is

currently estimated to be 5,300, while the total number of dosage forms and strengths are 8,300.

Bangladesh pharmaceutical industry is mainly dominated by domestic manufacturers.

Of the total pharmaceutical market of Bangladesh, the local companies are enjoying a

market share reaching around 75%, while the MNCs are having a market share of

25%. (Sarker, 2015)

The total industry can broadly be classified into two categories. These are-

a) Patent Medicines

b) Generic Medicines

Patent medicines are the products that are invented by the company, who have their

own research team working on their own laboratories. These products are patented for many

years to enjoy the monopoly market. After years of business the formulation is sold in the

market so that others can go into mass production.


26 | P a g e

Generic medicines are the products that are produced in mass scale. These are

marketed by several companies under different brand name, where the formulation of this

product is almost same. Prices of the products are under this category are competitive.

Bangladesh mainly concentrates on this category, as labor cost is one of the lowest in the

world.

5.1 Industry Size

According to a June 2011 Business Monitor International (BMI) report, Bangladesh had a

domestic pharma market worth BDT 59,330.7 million in 2010(US$ 858 million, Islamic Dinars

550.6 million - a unit of the Islamic Development Bank.) Most significantly, the growth

rate and investment environment has been deemed highly attractive.

The Bangladeshi Pharmaceutical Market is heavily retail oriented, with the bulk of distribution

undertaken by the companies themselves, leaving wholesalers to play a limited role. (Sarker,

2015)

Table 2: Bangladesh’s largest Pharma Companies (by sales July’15)

Top 10 Company

Sales in Million

Square $ 138.7

Incepta $ 52.1

Beximco $ 49.0

ACME $ 36.3


27 | P a g e

Eskayef $ 32.1

ACI $ 31.3

Opsonin $ 29.7

Renata $ 29.1

Aristropharma $ 28.8

Drug International $ 23.4

Figure 1: Largest Pharma Company, Source: IMS Health

The size of the market maybe small by global standards but numerous factors mask the true

size and potential for growth of the domestic pharma industry.

Volatility in exchange rates against foreign currencies render valuation of

domestic market size expressed in those foreign currencies meaningless.

The general population in Bangladesh often seeks relief from ailments through

traditional herbal medicines especially when allopathic treatments are

comparatively expensive or out of reach.

Some estimates put the size of the domestic traditional medicines market at a

quarter of the allopathic pharmaceuticals market which means the size of the actual


28 | P a g e

medicinal market could be worth Islamic Dinars 705.9 million (US$1.1

billion). (Sarker, 2015)

5.2 Current Environment

5.2.1 Drug makers Maintain Strong Growth –

The pharmaceutical industry is expected to maintain above-average earnings growth through

the end of the decade. IN the past ten years, the pharmaceutical market has doubled its

growth, reaching a total audited value of 932 million US dollar in the third quarter of 2015.

(Rahman, 2015)

Key global pull factors fueling this growth include:

Rapid expansion in the older segments of the population; Increasing life expectancies;

Large untreated patient populations;

Large markets overseas, especially in developing nations.

Key global push factors of growth are presented by:

Increased direct-to-consumer advertising and electronic commerce;

Industry-friendly regulatory environment;

Influence of the managed health care.

These positive fundamentals should more than offset the negative effects of:

Negative foreign exchange fluctuations;

Tightened utilization trends in Western Europe and Japan;

Rising tax rates. (Rahman, 2015)

5.2.2 Growth and Trends -

The growth potential of pharmaceutical industry is enormous. As urban population is

increasing and people are getting educated, they are now more concerned about healthcare.

So the demands of medical products are rising. In Bangladesh unhygienic conditions and

poor health maintenance plans provide vast scope for the pharmaceutical firms to sell


29 | P a g e

their products. On the other hand, the constant natural disasters provide opportunities

to this pharmaceutical company to boost its sales. (Rahman, 2015)

5.2.3 Industry Segmentation by Distribution –

Three-quarters of industry sales consist of pharmaceuticals used in outpatient settings, with the

balance administered in hospitals, nursing homes, and other inpatient facilities. About 70%

of prescribed drugs is distributed through wholesalers to hospitals, health maintenance

organizations (HMOs), and retail pharmacies. The remaining 30% is sold directly by

manufacturers to physicians, hospitals, retailers, and others. (Rahman, 2015)

5.2.4 Demand –

Bangladesh is prone to tropical diseases, and this leads to a high demand for

pharmaceutical goods. Because of this and the poor health and hygiene situations, a

steady growth in the pharmaceutical sector is possible. Demand is positively related to

the changes in disposable income. Assuming that income per capita will continue to

increase, it may be predicted that the demand for pharmaceuticals will also continue

to rise. Dhaka is the largest contributor, with nearly 45% market share. Chittagong and Sylhet

follow with 36% market share each. Khulna has a much smaller share of 19%,

but it has an immense growth potential because of the higher value sales per chemist. Dhaka

also has the highest per capita expenditure on drugs. Studies have shown that people in urban

areas tend to consume more pharmaceutical products compared to people living in rural areas.

Urbanization is steadily increasing in Bangladesh, as more and more people move in

from rural areas to live in Dhaka and the other cities. Because of the increased

frequency in natural disasters, people prefer to live and work in cities other than in

villages. This bears a direct impact on the volume of sales of the The Acme

Pharmaceuticals Ltd. As more people are living in relatively developed areas, the

demand for medicine is also rising. This provides a great opportunity for the company

to increase their sales. (Rahman, 2015)


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5.3 Identification and analysis of the strategic planning, promotional patterns and factors

adopted by leading pharmaceutical companies in Bangladesh

5.3.1 Product, Pricing and Promotion:

With growth back at the top of the agenda, particularly in large advanced economies, companies

face a reckoning as they run up against mismatches between the operations they have wrung

costs out of, and their growth objectives.

What's more, due to greater attendant process adaptability, emerging production technologies

portend the long-anticipated era of mass customization. This transition depends on

mainstreaming technologies that can dramatically improve process versatility — that is, the

ability to cost-effectively manage the complexity that comes with multiple process

specifications. (Mintzes and Barbara, 1999)

Figure 2 : Manufacturing Strategy

Now, learn more about key competencies among the top firms serving this complex, and

increasingly important, specialty with Kennedy's in-depth study. The research clearly illustrates

each leading Manufacturing and Production Strategy consulting firm's core competencies,

strengths and weaknesses, while providing detailed analysis across geographic regions,

competitive groups, and go-to-market challenges. The study also includes a real-world

engagement study from PwC. (Mintzes and Barbara, 1999)

5.3.2 Manufacturing and Production Strategy Consulting features:

The Kennedy Vanguard™ of Manufacturing and Production Strategy Consulting Providers,

featuring the strongest consultancies, assessed on relative breadth and depth of firms' capabilities

within the overall service area. (Mintzes and Barbara, 1999)


31 | P a g e

Engagement Case Study: PwC Helps an Advanced Technology Engineering Group Revise Its

Manufacturing Strategy.

Consulting Provider Profiles, detailing key service strengths and weaknesses, firm focus, AND

Capability Maps illustrating each practice's standing with respect to:

Strategic Drivers

Footprint and Scope

Operational Excellence

Production Technology

Strategy and Structure

Capabilities and Resources

Modeling Tools

Experience and Transformatio

Example: Provider Competency Strengths: Manufacturing and Production Strategy

Legend Very Strong Strong Moderate Weak None

Figure 3: Manufacturing and Production Strategy


32 | P a g e

Manufacturing and Production Strategy Consulting is organized by: Key

Geographic Region

Asia Pacific

Europe, Middle East and Africa (EMEA)

Latin America

North America

Competitive Groups

Business and Technology

Multi-Service

Strategy and Operations Management

Niche Strategy and Operations Management

Go-to-Market Challenges

Strategic drivers

Strategy to shop floor

Governance and operating model

Assets and IP

Sector expertise

5.3.3 Complete analysis includes:

Market trends: looks at the key trends and factors affecting growth for services, including the

context, demand drivers, building blocks and enabling infrastructure in the Manufacturing and

Production Strategy consulting marketplace.

Client spending trends and forecasts: details the size of the Manufacturing and Production

Strategy consulting market and its projected growth. This section slices the market by key

geographic region and includes valuable data on current challenges and timely growth

opportunities.

The competitive landscape: features in-depth analysis of the market and its leading players by

manufacturing strategy consulting provider competitive groups and their go-to-market

strategies. It includes rankings of the top consulting practices. Additionally, Manufacturing and

Production Strategy Consulting Provider Strategic and Service Disposition highlights firms'


33 | P a g e

overall approaches to strategy and service delivery, and offerings with a distinct disposition,

depicting the firms' relative positions and corresponding focus. (Mintzes and Barbara, 1999)

5.4 Production Pricing:

Kennedy research is priced based on the type and size of the purchasing organization and the

intended use of the material. For more information on report bundle prices or licensing

opportunities, contact our client-relations team. (Mintzes and Barbara, 1999)

Table 3: Consulting Buyers

Edition Report

Enterprise (firm-wide usage) $2,995

Consulting Firm (under 50 billable

consultants

Edition Report Price

Standard (up to 5 authorized users) $2,995

Leadership (up to 15 authorized users) $4,995


Consulting Firm (50-250 billable

consultants):





34 | P a g e


Consulting Firm (over-250 billable

consultants):





5.4.1 Pricing Strategy:

One of the four major elements of the marketing mix is price. Pricing is an important strategic issue

because it is related to product positioning. Furthermore, pricing affects other marketing mix elements

such as product features, channel decisions, and promotion.

While there is no single recipe to determine pricing, the following is a general sequence of steps that

might be followed for developing the pricing of a new product:

1. Develop marketing strategy - perform marketing analysis, segmentation, targeting, and

positioning.

2. Make marketing mix decisions - define the product, distribution, and promotional tactics.

3. Estimate the demand curve - understand how quantity demanded varies with price.

4. Calculate cost - include fixed and variable costs associated with the product.


35 | P a g e

5. Understand environmental factors - evaluate likely competitor actions, understand legal

constraints, etc.

6. Set pricing objectives - for example, profit maximization, revenue maximization, or price

stabilization (status quo).

7. Determine pricing - using information collected in the above steps, select a pricing method,

develop the pricing structure, and define discounts.

These steps are interrelated and are not necessarily performed in the above order. Nonetheless, the above

list serves to present a starting framework. (Islam et al., 1996)

5.4.2 Marketing Strategy and the Marketing Mix

Before the product is developed, the marketing strategy is formulated, including target market selection

and product positioning. There usually is a tradeoff between product quality and price, so price is an

important variable in positioning.Because of inherent tradeoffs between marketing mixes elements,

pricing will depend on other product distribution, and promotion decisions. (Islam et al., 1996)

5.4.2.1 Estimate the Demand Curve

Because there is a relationship between price and quantity demanded, it is important to understand the

impact of pricing on sales by estimating the demand curve for the product.For existing products,

experiments can be performed at prices above and below the current price in order to determine the price

elasticity of demand. Inelastic demand indicates that price increases might be feasible.

5.4.2.2 Calculate Costs

If the firm has decided to launch the product, there likely is at least a basic understanding of the costs

involved; otherwise, there might be no profit to be made. The unit cost of the product sets the lower limit

of what the firm might charge, and determines the profit margin at higher prices.The total unit cost of a

producing a product is composed of the variable cost of producing each additional unit and fixed costs

that are incurred regardless of the quantity produced. The pricing policy should consider both types of

costs.


36 | P a g e

5.4.2.3 Environmental Factors

Pricing must take into account the competitive and legal environment in which the company operates.

From a competitive standpoint, the firm must consider the implications of its pricing on the pricing

decisions of competitors. For example, setting the price too low may risk a price war that may not be in

the best interest of either side, Setting the price too high may attract a large number of competitors who

want to share in the profits.From a legal standpoint a firm is not free to price its products at any level it

chooses. For example, there may be price controls that prohibit pricing a product too high. Pricing it too

low may be considered predatory pricing or "dumping" in the case of international trade. Offering a

different price for different consumers may violate laws against price discrimination. Finally, collusion

with competitors to fix prices at an agreed level is illegal in many countries.

5.4.3 Pricing Objectives

The firm's pricing objectives must be identified in order to determine the optimal pricing. Common

objectives include the following:

• Current profit maximization - seeks to maximize current profit, taking into account revenue

and costs. Current profit maximization may not be the best objective if it results in lower long-

term profits.

• Current revenue maximization - seeks to maximize current revenue with no regard to profit

margins. The underlying objective often is to maximize long-term profits by increasing market

share and lowering costs.

• Maximize quantify - seeks to maximize the number of units sold or the number of customers

served in order to decrease long-term costs as predicted by the experience curve.

• Maximize profit margin - attempts to maximize the unit profit margin, recognizing that

quantities will be low.

• Quality leadership - use price to signal high quality in an attempt to position the product as the

quality leader.

• Partial cost recovery - an organization that has other revenue sources may seek only partial cost

recovery.


37 | P a g e

• Survival - in situations such as market decline and overcapacity, the goal may be to select a

price that will cover costs and permit the firm to remain in the market. In this case, survival may

take a priority over profits, so this objective is considered temporary.

• Status quo - the firm may seek price stabilization in order to avoid price wars and maintain a

moderate but stable level of profit. (Islam et al., 1996)

For new products, the pricing objective often is either to maximize profit margin or to maximize quantity

(market share). To meet these objectives, skim pricing and penetration pricing strategies often are

employed. Joel Dean discussed these pricing policies in his classic HER article entitled, Pricing Policies

for New Products.

Skim pricing attempts to "skim the cream" off the top of the market by setting a high price and selling to

those customers who are less price sensitive. Skimming is a strategy used to pursue the objective of profit

margin maximization. Skimming is most appropriate when:

• Demand is expected to be relatively inelastic; that is, the customers are not highly price sensitive.

• Large cost savings are not expected at high volumes, or it is difficult to predict the cost savings

that would be achieved at high volume.

• The company does not have the resources to finance the large capital expenditures necessary for

high volume production with initially low profit margins. (Islam et al., 1996)

5.4.4 Penetration pricing pursues the objective of quantity maximization by means of a low price. It is

appropriate when:

Demand is expected to be highly elastic; that is, customers are price sensitive and the will

increase significantly as price declines.

Large decreases in cost are expected as cumulative volume increases.

The product is of the nature of something that can gain mass appeal fairly quickly.

There is a threat of impending competition.

As the product life cycle progresses, there likely will be changes in the demand curve and costs. As such,

the pricing policy should be reevaluated over time.


38 | P a g e

The pricing objective depends on many factors including production cost, existence of economies of

scale, barriers to entry, product differentiation, and rate of product diffusion, the firm's resources, and the

product's anticipated price elasticity of demand. (Islam et al., 1996)

5.4.5 Pricing Methods

To set the specific price level that achieves their pricing objectives, managers may make use of several

pricing methods. These methods include:

• Cost-plus pricing - set the price at the production cost plus a certain profit margin.

• Target return pricing - set the price to achieve a target retime-on- investment.

• Value-based pricing - base the price on the effective value to the customer relative to alternative

products.

• Psychological pricing - base the price on factors such as signals of product quality, popular price

points, and what the consumer perceives to be fair.

In addition to setting the price level, managers have the opportunity to design innovative pricing models

that better meet the needs of both the firm and it's customers. For example, software traditionally was

purchased as a product in which customers made a one-time payment and then owned a perpetual

license to the software. Many software suppliers have changed their pricing to a subscription model

in which the customer subscribes for a set period of time, such as one year. Afterwards, the

subscription must be renewed or the software no longer will function. This model offers stability to

both the supplier and the customer since it reduces the large swings in software investment cycles.

(Mamun et al., 2006)

5.4.6 Price Discounts

The normally quoted price to end users is known as the list price. This price usually is discounted

for distribution channel members and some end users. There are several types of discounts, as

outlined below.

Quantity discount - offered to customers who purchase in large quantities.


39 | P a g e

Cumulative quantity discount - a discount that increases as the cumulative quantity

increases. Cumulative discounts may be offered to resellers who purchase large quantities

over time but who do not wish to place large individual orders.

Seasonal discount - based on the time that the purchase is made and designed to reduce

seasonal variation in sales. For example, the travel industry offers much lower off-season

rates. Such discounts do not have to be based on time of the year; they also can be based on

day of the week or time of the day, such as pricing offered by long distance and wireless

service providers.

Cash discount - extended to customers who pay their bill before a specified date.

Trade discount - a functional discount offered to channel members for performing their

roles. For example, a trade discount may be offered to a small retailer who may not purchase

in quantity but nonetheless performs the important retail function.

Promotional discount - a short-term discounted price offered to stimulate sales. (Mamun et

al., 2006)

6. Competitive strategies of pharmaceutical companies

The pricing and other competitive strategies of pharmaceutical companies have been

altered by revolutionary developments in information technology, new state drug

substitution laws, federal legislation, and the emergence of market institutions that include

health maintenance organizations (HMOs) and pharmacy benefit managers (PBMs). An

important and sometimes overlooked factor that distinguishes one company from another in

the pharmaceutical industry is strategic planning. Low-cost high-quality drugs benefit society

and helps provide pharmaceutical companies a competitive edge.

There are some factors which drive the price and quality competitiveness of different

companies.


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Distinguished Operational Capability

Consistently delivering high quality Products

Professional Management Capability

Adopting Innovation in Manufacturing Process

Low Manufacturing Cost

Research and Development Capability in both Formulation and API(Active

Pharmaceuticals Ingredients)

Sales and Marketing Capability focused on Brand building. (Kotler et al., 2008)

6.1 Influential factors on prescription preparation by doctors: a survey conducted on

practicing doctors and medical representatives in Bangladesh

Pharmaceutical industry is one of the progressive and perspective industries in Bangladesh. It

contributes 1% to the country’s GDP and is the third largest industry in terms of contribution to

government revenue .The current market size is about 10,000 million with having almost

persistently double digit growth. The market is almost self-sufficient in meeting local demand as

97% of the drugs are manufactured locally and is exporting to 92 countries. (Habib and Alam,

2011)

There are 267 licensed pharmaceutical companies in Bangladesh. About 80% of the drugs sold in

Bangladesh are generics and 20% are patented drugs. The country manufactures about 450

generic drugs for 5,300 registered brands which have 8,300 different forms of dosages and

strengths. Among the 49 Least Developed Countries (LDCs), Bangladesh has the strongest base

to manufacturing pharmaceutical products. (Habib and Alam, 2011)

This large pharma market is principally driven by the prescriptions of doctors. Company

personnel (marketing and sales division) always try to motivate doctors to prescribe their own

company brands by personal selling, clinical meetings, seminars, symposia, etc because in

Bangladesh the promotion of pharmaceutical products in the mass media is strictly prohibited.

The sales division (medical representatives) is playing the imperative role for marketing division.

Medical representatives regularly make sales call to doctors by sharing scientific information and

competitive advantages of their products over the competitors.During prescription preparation


41 | P a g e

doctors consider such factors and use brand names for treatment and patients buy the prescribed

brands. (Habib and Alam, 2011)

It might be helpful to pharma marketers to figuring out the factors that influence physicians to

include brands in prescription which will ultimately help to sustain the development in the

intense rivalry. (Habib and Alam, 2011)

6.2 Materials and Methods

The focus of this study was to gain marketing insight by subjective and objective analysis of

factors those influence the prescription preparation of doctors. It was a cross-sectional,

descriptive and quantitative research. (Sultana and Khosru, 2011)

By purposive, convenient sampling, 200 registered practicing doctors from Dhaka, Rangpur,

Comilla, Narayongong, Mymensing and Khulna and 245 medical representatives from the same

districts of Bangladesh of 16 pharmaceutical companies comprised the study population. The

selected doctors were specialized in Medicine, Surgery, Gynecology, Dental and GP (General

Practitioner). Designations of the medical representatives of the pharmaceutical companies were

regional sales manager, area sales manager and medical information officer. To get the best

knowledge on the purpose of the study, the survey method was taken as better way to

communicate with the medical representatives and physicians than any other option.

Questionnaire was prepared and finalized after pre testing. Pre testing was done on both the

physicians (30 physician) and the medical representatives (40 representative) and no major

change was made in the questionnaire. Same questionnaire was used both for subjective and

objective analysis except the respondents’ part.

The measurement was made on the basis of 5 point Likert Scale. Non response was very minimal

and that was filled by neutral value. All data input, format, transformation and analysis were

performed using SPSS 16 version and Microsoft Excel®. The study was conducted from

February 2013 to October 2013.


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Better generalization can be done if the whole country was covered with addition of negative

questions in the questionnaire that would more solidify the perception. (Sultana and Khosru,

2011)

6.3 Results and Discussion

Among the 200 physician respondents 58 were female and 142 were male physicians; more

specifically, 18 were dentist, 86 were GP, 45 were medicine specialist, 28 were surgeon. Among

the 245 medical representatives seven were female and 238 were male, 212 were medical

information officer and 33 were manager (area and regional). After analyzing the data, it was

found that there is difference in response between variable to variable and doctor (subjective) to

medical representatives’ (objective) response. (Sultana and Khosru, 2011)

Seventy six percent of doctors consider company image during prescription generation while

83.3% representatives think the same (Fig. 4). 22.68% younger (25 – 35Y) doctors are strongly

agreed to consider company image and 36.59% older (46Y and above) doctors have same

consideration. Whereas 88.89% younger (below 25 Y) and only 25% older (46Y and above)

representatives strongly agreed on it. (Sultana and Khosru, 2011)

Sixty nine percent of doctors consider promotional regularity during prescribing medications to

patients but 87% of representatives think regular promotion of brands increases prescription in

favor of the promoted brands (Fig. 5). Younger doctors (53.61%) are more sensitive to regular

promotion than older (36.59%) ones. Representatives have little more focus on product

availability than doctors (Fig.6). Older (both doctors and representatives) people have more

focus on availability maintaining. (Sultana and Khosru, 2011)

Subjective responses of doctor and objective responses of representatives regarding competitive

price of brands does not has suggestibility to have significant consideration during prescribing

medications to patients (Fig. 7). Representatives think to have more improvisation on

prescription but doctors’ response is significantly different of having less consideration of

representatives during prescribing medications (Fig. 8).

There is no variation of responses with age in case of doctor but there is significant difference in

representatives. 33.33% younger but 75% older representatives agreed to have role on changing


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doctors’ decision in favor of their brands. Easy brand name and international certification of the

firm did not make a huge noise in the survey responses (Fig. 9, Fig. 10). There is much

difference in consideration of promotional tools in prescription generation (Fig. 11) between

subjective and objective assessment. Twenty five percent of older and 77.78% younger

representatives strongly agreed to that. (Sultana and Khosru, 2011)

There is a little gap in the response to have effect on prescription of scientific information and

personal experience related confidence consideration between doctors and representative (Fig.

12). Subjective response with age is similar but older (75%) agreed more than the younger

(55.56%) representatives in case of personal experience. (Sultana and Khosru, 2011)

6.4 Comparative analysis of subjective and objective responses is given below.

Figure 4: Comparative response (in percentage) in consideration of company image during

prescribing medications to patients


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Figure 5: Comparative response (in percentage) in consideration of regular promotion during


Figure 6: Comparative response (in percentage) in consideration of availability of brands during



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Figure 7: Comparative response (in percentage) in consideration of low price of medicine during


Figure 8: Comparative response (in percentage) in consideration of medical representative’s

improvisation during prescribing medications to patients

Figure 9: Comparative response (in percentage) in consideration of easy brand name during



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Figure 10: Comparative response (in percentage) in consideration of international certification of

company during prescribing medications to patients

Figure 11: Comparative response (in percentage) in consideration of promotional tools during


Figure 12: Comparative response (in percentage) in consideration of scientific information

during prescribing medications to patients. (Sultana and Khosru, 2011)


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Pharma market in Bangladesh has become hyper competitive, because every firm is competing

in generic market. Medical representatives of every firm are firmly trying to create prescriptions

in favor of their brands by many innovative ways. This study contains a minimum scenario of

influential factors on prescription preparation and hope to see a healthy growth of pharma

industry of Bangladesh.

7. Export prospects of pharmaceuticals sector in Bangladesh

Bangladesh's pharmaceutical industry has tremendous potential to grow and compete in the

international market. Most companies follow the good manufacturing practice (GMP) standards,

set by the UN World Health Organization (WHO). Bangladesh can compete with countries like

India, China, Brazil and Turkey in the international export market due to its quality compliance.

Bangladesh can continue to produce patented products until 2016 as per trade related intellectual

property rights (TRIPS).The industry is legally permitted to reverse engineer, manufacture and

sell generic versions of on-patent pharmaceutical products for domestic consumption as well as

for export to other LDCs. It created a big opportunity to make Bangladesh a new chemical entity.

Bangladesh imports 80 per cent of its pharmaceutical raw materials. A good number of skilled

professionals from home and abroad are expected to join the industry to enrich its human

resources pool. (Yusuf and Muhammad, 2006)

Pharmaceuticals sector is one of the fastest growing sectors in Bangladesh. With satisfactory

annual growth rate of 34%, this sector is also fulfilling 97% of the total medicine requirement

of the local market. Now more than 200 registered pharmaceutical manufacturers in Bangladesh.

Itis the largest employment sector in Bangladesh. Around 35,000 people work in the industry

i.e.50% are pharmacists, chemists, biochemists and microbiologists. Government organization

i.e. Directorate of Drug Administration and semi government Pharmacy Council of Bangladesh,

control pharmacy practice in Bangladesh. The Bangladesh Pharmaceutical Society is associated

with international organizations i.e. International Pharmaceutical Federation and Commonwealth

Pharmaceutical Association. According to Bangladesh Pharmaceuticals and Healthcare Report

2011, Bangladesh medicine sales reached. 7,000 crore in 2010. Business Monitor International in

its latest report said Bangladesh hold the 14th position in 17 regional markets surveyed in BMIs

Pharmaceutical & Healthcare Business Environment Ratings for the Asia region. Bangladesh's


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pharmaceutical rating is 40.2out of 100; this figure has changed marginally from the previous

quarter but still remains lower than the regional average of 53.1. Globally, Bangladesh occupies

67th position in BMIs 83market-strong pharmaceutical universe. The experts forecast the growth

trend would take the sales volume to Tk. 10,000 crore in 2011.At present Bangladesh is

exporting more than 67 different countries of the world. There are about450 generics/substances

registered in Bangladesh. Out of these 450 generics, 209 are in the controlled category (i.e. in the

essential drug list). The remaining 333 generics are in the decontrolled category. The total

number of brands/items that are registered in Bangladesh is currently estimated to be 5,300 while

the total number of dosage forms and strengths are 8,300, about 12,500 plus brands. The top 10

domestic manufacturers having a market share of about85%, while the other manufacturers

contribute about 20% of the total pharmaceutical market of Bangladesh. (Yusuf and Muhammad,

2006)

7.1 Foreign Markets

Bangladesh has exported basic chemicals to many countries like Hong Kong, South Korea,

Malaysia and so on. After being successful in exporting basic chemicals, a few leading

companies also started registering and exporting their finished formulation in sixty seven other

countries, i.e. Australia, Brazil, Canada, Japan, etc. Overall pharma companies have export

activities in about 72 countries. (Yusuf and Muhammad, 2006)

7.2 International Privilege

Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement permits Bangladesh to

reverse-engineer patented generic pharmaceutical products to sell locally and export to markets

around the world. The 1994 WTO agreement on Trade Related Aspects of Intellectual Property

Rights (TRIPS) requires signatories to implement patent protection for almost all products,

including pharmaceuticals. However, article 66 provides LDCs with a breathing space before

introducing full product patent protection. Bangladesh is therefore exempt until 2016 from the

requirement to observe patent protection on reverse-engineered generic products destined for the

local market and also enjoys a range of privileges with regard to exporting such products. (Yusuf

and Muhammad, 2006)


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7.3 Where the industry is right now

Since the Doha declaration in WTO / TRIPS Agreement declaration in 2001, our govt. has just

allocated land for the proposed central API (active pharma ingredient) facility. Expert said that

if you don't have the backward-integrated API or raw material industry, you cannot be

competitive in export markets. India is competitive in world market because it has vibrant, world

class API manufacturing capabilities. APIs occupy a significant portion of cost of pharma

products, and cheap labor cost is not a huge advantage as it is always publicized by many. Sad

but true- we are nowhere near India in terms of skilled manpower or process capabilities, and

there is no noticeable progress to develop the skill set or manpower. Again, the industry is yet to

have any bioequivalence testing facility which is mandatory for product registration in developed

markets, and there is mounting pressure from even semi regulated markets for such compliance.

The global generic drug market is now $130 billion, and US is the market leader with more than

$45billion whereas India's presence is strong with $9 billion and ours only $45 million.

Bangladesh is now exporting a wide range of pharmaceutical products covering all major

therapeutic classes and dosage forms. Beside our regular brands, we are also exporting high-tech

specialized products like inhalers, Suppositories, Nasal Sprays, Injectables and infusions. Apart

from our overseas retail customers, we are even supplying to world-renowned hospitals and

institutions like Raffles Hospital of Singapore, Jinnah Hospital of Pakistan, MEDs of Kenya,

SPC of Sri Lanka and KK Women & Children Hospital of Singapore. The product quality,

packaging and presentation of our products have been highly appreciated in all the countries we

are exporting. (Yusuf and Muhammad, 2006)

7.4 Export Scenario

As said before pharmaceuticals sector is the 2nd foreign currency earner sector in Bangladesh.

Last five years it earns at least $30 million. Globally Bangladeshi pharmaceuticals companies

were doing a much better business in 2010.Top ten companies have almost reached their

expected sales target. According to a June 2010 Business Monitor International (BMI) report,

Bangladesh had a domestic pharma market worth Tk. 7,000 crore in 2010 and export worth

$40.69 million; expert says it could be reached domestic worth Tk. 1000 crore export worth

$45 million in 2011 and domestic worth Tk.1200 export worth $48 million in 2012. (Muktadir


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and Abdul, 2011)

7.5 Barriers

High cost of registration for their export items and restriction on transfer of funds for

promotional activities.

The fixed mark-up system of pricing helped keep the prices of pharmaceutical products

low; this made it difficult to cover costs of marketing and distribution.

In order to export a drug to a regulated market and to some moderately regulated market,

itis mandatory to provide bioequivalence data. At present there is no bioequivalence

laboratories exist in Bangladesh and we have to conduct this experiment abroad at a high

price.

Weaknesses in government policy on pharmaceuticals.

Bangladesh is also being deprived of the technology transfer where the major strength of

the multinationals lie.

Pharmacies are not adequately supervised to ensure the quality of drugs sold there.

Sometimes pharmacies are not supervised at all by the DDA because of the inadequate

strength of the drug administration. (Muktadir and Abdul, 2011)

7.6 Opportunities

APIs (Active Pharmaceutical Ingredients):

There are massive Scope in the overseas markets. There is no strict registration requirement and

promotional costs are also low for API. If we maintain cost effectively in this particular matter; it

will be a huge opportunity for us for exporting our raw materials in foreign markets. (Hasan and

Nazmul, 2010)


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Bulk drugs:

Bangladesh Pharmaceutical Society is planning to set-up a “Reference Laboratory” for appeal,

biopharmaceuticals and pharmacokinetic analysis and research. They are also seeking foreign

participation in developing this laboratory. Opportunities have been created in Bangladesh for

bioequivalence study, validation report, clinical trials and manufacturing plant audit mechanism.

These sub-sectors would need more investment in future. The industry created opportunities for

foreign direct investment. Some of the pharmaceutical manufacturers of Bangladesh have made

multimillion-dollar investments on new plant and facilities conforming to USFDA and UK-

MHRA Standards. They have sufficient production capacity for contract (“Toll”) manufacturing

including an abundant and cheap labor force. (Hasan and Nazmul, 2010)

7.7 Support needs to buster export

Removal of export barriers.

Strengthening of drug administration.

Development of independent drug testing laboratory DTL.

Development of clinical testing / Bioequivalence centers.

Establish API Industry Park.

Introduce CGMP (Current Good Manufacturing Practice) training.

Dedicated pharma zone (Temperature control area) at sea / Airports

Suggested changes in patent law to make use of TRIPS Agreement. (Hasan and Nazmul,

2010)


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8. Market insight: How Bangladesh pharmaceutical sector performed in 2015

The Pharmaceutical sector is one of the most developed among the manufacturing industries in

Bangladesh, although it is still small compared to other comparable sectors. The increase in

awareness about healthcare, higher income and increasing government expenditure have resulted

in higher demand for medicine.The Drug Policy of 1982 has helped the industry grow by 65

times from BDT 1730 million to BDT 113 billion now, according to IMS report of 2014. In 2000

there were 173 active and licensed allopathic drug-manufacturing units in the country, while the

figure now stands at 300 now.According to the Directorate General of Drug Administration

(DGDA), there are currently 200 active allopathic companies in Bangladesh. medication. There

are 1495 wholesale drug license holders and about 37700 retail drug license holders.

The industry meets 98% of the demand for medication in the country and can be considered to be

self-sufficient.The sector employs 1,15,000 workers and between 2013 and 2014, the growth

stood around 11.37%. According to IMS Health, annual pharmaceutical sales in the local market

may reach BDT 160 billion within 2018. (Rahman, 2015)

Figure 13: Local Sales (Source: IMS /4th quarter report – data visuals by EBL Securities)

8.1 Export scenario

The industry is also exporting abroad. Currently, formulations are exported to 92 countries

around the world. The major destinations for Bangladeshi medicines are Myanmar, Sri Lanka

and Kenya, while nearly 50 countries import Bangladeshi medicines regularly. The growth in

exports has averaged over 10% from 2010 to 2014. In 2015, the exports was over $ 41.17

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million. Pharmaceutical companies are trying to export to regulated, unregulated and moderately

regulated markets. (Rahman, 2015)

Figure 14: Exports (Source: IMS /4th quarter report – data visuals by EBL Securities)

8.2 Domestic competition

The domestic market is highly concentrated and competitive. The local manufacturers dominate

the industry capturing market share of 90%. While the multinationals cater to the remaining

demand. According to IMS Health, the top 10 companies hold 68.5% market share, the top 20

hold 85.73%, and the top 31 hold 94.1%, while the remaining 169 companies shared 5.9%

among them.Square Pharmaceuticals led the industry with a market share of 19.21%. Incepta and

Beximco took 2nd and 3rd positions with market shares of 10.42% and 8.47% respectively.

(Rahman, 2015)

Table 4: Top 10 companies (Source: EBL Securities Ltd)

8.3 MNCs




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Although a number of MNCs are operational in Bangladesh market, no MNCs are in the top ten

in terms of domestic sales. Out of the top fifteen pharmaceutical companies in Bangladesh, only

two players are MNCs. Among the MNCs, Sanofi has the highest market share while Novartis

has the highest growth as of 2014. (Rahman, 2015)

Table 5: Top MNC pharmaceutical companies (Source: EBL Securities Ltd)

8.4 Backward integration

Due to lack of backward integration, the sector is at a competitive disadvantage, as

pharmaceutical players still have to import 90% of raw materials from 98 indenters around the

world. Most APIs or their raw materials have to be imported from countries like China, India,

Korea & Italy. This generates higher factor costs which can be up to 30-40% of the cost of

medicine. The API Park which was supposed to be established has been delayed due to various

problems like rise in production cost, slow gas connection and slow handover. The

manufacturers are also concerned about their capability to shift their entire production in the API

Park. For many APIs, The domestic market is too small to justify an API manufacturing plant

other than the reduction of cost. Although the companies have the technical knowledge to

produce APIs, there is not enough demand in the market. This means that once the API Park is

established, we would need to export the additional products abroad. Export channels need to be

set up now. (Rahman, 2015)

8.5 TRIPS

According to the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS),

all signatories are bound to incorporate 20 year product patent protection for pharmaceutical

products in their domestic legislation. Currently, total 48 LDCs, including Bangladesh, are not

http://www.thefinancialexpress-bd.com/2014/12/21/71943


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obliged to enact legislation on product patent rights till 2016. TRIPS provided Bangladesh

pharmaceutical firms with patent free production rights domestically until 2016 and limited

exporting advantage. A major challenge to the current scenario could have been the expiry of the

agreement. But on November 6, 2015, the TRIPs council meeting approved extension of the

transition period for pharmaceutical products for least developed countries till 2032. Bangladesh

secured additional protection for LDCs, including additional waiver as well as the previous

waiver. (Rahman, 2015)

8.6 Beximco pharma secures FDA approval

Beximco Pharmaceuticals Limited becomes the first Bangladeshi pharmaceutical company to be

approved by the US Food and Drug Administration (FDA).The approval came following

successful inspection of its oral solid dosage facility at Tongi during 19-22 January 2015.

The company says it has received the establishment inspection report (EIR) from the US drug

regulatory authority stating that the audit is formally concluded. This is a major milestone for the

company as well as for the entire industry as this is the first time a Bangladeshi company has

received the prestigious FDA approval, according to a press release. This approval, it said, is

based on the comprehensive audit encompassing all the systems of drug manufacturing including

quality, facilities and equipment, materials, production, packaging and labeling and laboratory

controls.Remarkably, there was no 483 observation issued by the US regulatory authority. A 483

form is issued when FDA has observations of non-compliance or deviation from good

manufacturing practices (GMP).The company has already submitted several abbreviated new

drug application (ANDAs) for the US market which are currently under review. This is a

remarkable achievement for the Bangladesh pharmaceutical industry as this makes ways for us to

export medicines to the US market known for stringent regulations and quality standards.

Beximco Pharma has facilities already accredited by the regulatory authorities of European

Union, Australia, Canada, Taiwan and Brazil. (Rahman, 2015)

9. Conclusion

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The pharmaceutical sector has already been declared as the thrust sector by the government of

Bangladesh. Bangladesh has built a strong baseline and going towards the self-sufficiency for the

production of medicine. Meanwhile, some companies have started to produce vaccine, insulin,

anticancer drugs, etc. As the industry is growing at 11.37% and has a CAGR of 21%, it has a lot

to offer given that the government provides incentives & the investment in R &D increases

among the companies. In 2015 alone, patented drugs worth $60bn are going off patent which

opens up opportunities for generic manufacturers around the world. Bangladesh could be ideally

positioned to gain from generic drug opportunities with its cost advantages and skilled

manpower, but we need to address those key challenges faced by the industry in order to gain

further competitive advantages and build presence in the global generics. In Bangladesh the per

capita consumption rate of medicine is one of the lowest in this earth. However, since

independence this industry has been a key contributor to the Bangladeshi economy. The industry

has been equipped to realize them is a million dollar question. When we have generic drug

producers like India and China, we will have to make double the efforts required to enter any

export destination. Pharmaceutical Industry is rising at a likely rate with the expansion of

healthcare infrastructure and so increasing the health consciousness and the purchasing

competence of natives. Healthy growth is to be expected to encourage the Pharmaceutical

companies to introduce newer drugs and newer research products, while at the similar time

maintaining a vigorous competitiveness in respect of most compulsory drugs.


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