Zareen Delawar Hussain
Being one of the world’s leading industries the global pharmaceutical industry revenue is $11205 billion in 2018 (growth rate of 5.8%). Bangladesh is the only least developed country around the globe that meets up to 97% of its demand for pharmaceutical products through local production, with a market size of nearly $2.5 billion with a 15.6% Compound Annual Growth Rate (CAGR) for the last 5 years. In addition, Bangladeshi pharma products are being exported to199 countries which generated over $100 million in 2018. There are a good number of successes in Bangladesh in which we take pride and undoubtedly the pharmaceutical sector is one of the best. It is one of the country’s most successful stories and one of the most technologically advanced dynamic sectors currently in existence. The aim of the study is to examine the current scenario of the pharmaceutical industry in Bangladesh and compare/contrast the competitiveness in terms of overhead cost, compliance issues (i.e. Patent, IP, and Legal), or other factors. Comparison has been mainly conducted against India and China as these two countries have equivalent/better infrastructure for pharma operation. This paper is based on both primary and secondary data. The primary data is based on interview findings. Interviews of pharmaceutical owners and senior-level executives of six renowned pharmaceutical companies were collected. In addition, the Director of the Drug Administration (the regulator) and two key leaders of the Association of Bangladesh Pharmaceutical Industry were also taken. A face-to-face interview was conducted using a questionnaire. Follow-up interviews were conducted over the telephone to clarify policy and trade issues. Secondary materials were extensively used to identify critical factors affecting the pharmaceutical industry in different countries. The sources of secondary data include published articles from various journals, working papers, WTO websites, published interviews, TWN (Third World Network) briefing papers, conference papers, newspapers, and other e-sources. Key unique advantages of the Bangladesh pharma industry which put Bangladesh ahead of other competitors were: Patent waiver up to 2032; reverse engineering of new molecules for API synthesis (already stopped in India and China); and overhead cost (manpower+ utility cost) per unit conversion cost of the product is 30% less. Other influential factors are Use of high-tech and high-speed EU origin machines, skilled people, no data integrity and falsification incident during any USFDA/EU inspection, English proficiency, and social security. The third in the Pharma 2020 series outlines a confluence of dynamics that lead to a new marketing and sales system with a smaller, more agile, and smarter sales force. The pharma industry is no longer being rewarded for incremental innovation, me-too products, and selling the most pills. The industrial pharmacy involves the pharmaceutical industry and includes the research, production, packaging, quality control, marketing, and sales of pharmaceutical goods. When a pharmaceutical company discovers a new drug, it files for a patent. Then, the company is awarded a license for 20 years to exclusively sell the drug. Exclusivity is provided to recoup research and development expenses incurred during the development of a drug. Patented drugs are patented by an innovator company. Originating as a pharmacy founded in Darmstadt in 1668, it was in 1827 that Heinrich Emanuel Merck began the transition towards an industrial and scientific concern, by manufacturing and selling alkaloids. The term Pharmacognosy was first introduced by the Austrian physician Schmidt in 1811 and then in 1815 by Seydler in a work titled Analecta Pharmacognostica. Research into ethnobotany, ethnomedicine, and ethnopharmacology has also become an important element in Pharmacognosy.