Presentation Topic : Problems and Prospect
of Pharmaceutical Industries in Bangladesh.

 The roots of the pharmaceutical industry lie back as far
back as the middle ages.
 But the industry as we understand it today really has its
origins in the second half of the 19th century.

The origins of the Pharmaceutical Industry:
 The chemical industries (of the late nineteenth century) in
the upper Rhine Valley of Switzerland.
 The drag store was opened by Arabian Pharmacists in
Baghdad in 754 and many more was opened in Islamic
country and Europe .

Arabian pharmacists opened the first documented
drugstore:

Most of today's major pharmaceutical companies were
founded in the late 19th and early 20th centuries.

Some Others:
 MAO Inhibitors
 Chlorpromazine (Thomasine)
 Haldol (Haloperidol)
 Velum (diazepam)
- discovered in 1960,
- marketed from 1963 ,

In 1964 The World Medical Association
(WMA) issued its Declaration of Helsinki which
set standards for clinical research and demanded

Pharmaceutical Industry has grown in
Bangladesh in the last two decades at a
considerable rate. The sector consistently creates
job opportunities for qualified people. Like all
other sectors in Bangladesh, the pharmaceutical
industry was much neglected during Pakistan
regime. Most multinational companies had their
production facilities in West Pakistan. For several
years after liberation, the government could not
increase budgetary allocations for the health
sector. Millions of people had little access to
essential life saving medicines.

In 1981, there were 166 licensed pharmaceutical
manufacturers in the country. But in spite of having 166
local pharmaceutical production units, the country had
to spend nearly Tk 300 million on importing finished
medicine products. With the promulgation of the Drug
(Control) Ordinance of 1982 many medicinal products
considered harmful, useless or unnecessary which got
removed from the market. In 2000, there were 261 unani,
161 Ayurveda, 76 homeopathic and biochemical licensed
manufacturing units. They produced medicines worth
Tk 1.2 billion in 2000. One of the major positive impacts
of Drug (Control) Ordinance is the rapid development
of local manufacturing capability.

• Significant contribution on country's economy.
• Substantial development in pharmaceutical sector
enabled us to export our branded generics in the
international marketing domain.
• Healthy growth is encouraging the pharmaceutical
manufacturers towards research and development for
newer generics of quality drugs at affordable prices.

• The creation of Active Pharmaceutical Ingredient
Park (API) is one of the most significant parts of
the pharmaceutical industry as a whole.
• Bangladesh pharmaceutical market is growing at
a fast pace and has a bright future indeed
according to Business Monitor International's .

What is GDP?
GDP stands for Gross Domestic Product.
Gross domestic product is the market value
of all officially recognized final goods and
services produced within a country in a given
period of time.

Contribution of
pharmaceutical
industries to GDP of
Bangladesh
*exports medicines worth $60
million
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
FY10 FY11 FY12 FY13 FY14 FY15
Contribution of pharmaceutical
industries to GDP of Bangladesh

The Turnover rate of MR is very high
Cost of marketing hardly affect the price of the
medicine
Professionalism in marketing is not achieved
yet in Bangladesh
Effect of globalization has increased the
competition.
Unstable political situation and different types
of violence .
PROBLEMS OF MARKETING

Problems of Export:
 Unstable political situation
 Problems of port
 Irresponsibility of customs officers
Shortage of power
Lack of opportunity to supply the emergency power
PROBLEMS OF POWER DEVELOPMENT:

Other Problems:
 Inadequate strength and limited capacity of DTL &
DDA
 Big multinationals may come and take major market
 Foreign competitors
 Illegal entrance of drugs
 Advertisement of OTC (over-the-counter) drugs

Sales Rate (Core) Company Size
Over 300 Large Company
50-300 Medium Company
Under 50 Small Company

Problems of Medium & Small companies:
Competition:
•Unequal Competition:
There are near about 250 Pharmaceutical companies in our country.
Among these companies, only 30 companies own the 90% of the whole
market share.
•Gross sales:
Only 17 companies in our country have a sales rate more than 100 cores.
Following GMP procedures :
If any Pharmaceutical Company want to maintain GMP(Good
manufacturing practice), it must have to invest 100 core tk or more.

Customers are Doctor: Large company provide doctors with bonus,
and other facilities like luxuries products, where the medium and small
company cannot afford it.
Medical representative: Large companies appoint around 1200 medical
representative, where medium company appoint 200 -300.

Problems of Large Company
•High cost of marketing products.
•High cost of financing.
•Turnover rate of medical representatives is very high.

Common Problems of Pharmaceutical Industries in
Bangladesh
Manufacturing Problems:
lack of Gas & power supply. Companies are not able to provide instant
power supply, which hamper the production quality.
Industry Sector:
Energy cost of industry is too high.
Bank interest rate:
In our country bank loan interest rate is 18-20%. Where in abroad it’s
only 3-4%.
Local Problems:
•API Support.
•Raw materials.
•Regulatory body.
•Drug tasting laboratory.

Export problems:
•Rule of Bangladesh bank is not in favour of pharma industry.
•Advance payment is needed.
•Banks are averse to allocate Dollar.
•Have to face audit board.
Others:
•Bangladesh Drug Administration is not a global member.
•Unethical activities by small company to sustain.
•Strike hampers the distribution channel works.

1. Prospects of Marketing:
i) Marketing system is improving in this sector and proper
marketing may help a firm to achieve their goals.
ii) For free and fair competitions marketing can play a major
role.
iii) Marketing can be regarded one of the most important
weapons to face the challenges of open market economy.
2. Prospects of Foreign competition:
i) Foreign competition made the country firms more eligible
to face challenges that arose after the year 2005.
ii) The local firms will not face any rigorous problem in
foreign countries as they are accustomed in competition
with foreign firms.

3. Prospects of Export:
i) For surviving in the future, competitive environment is
necessary.
ii) Competition reduces monopolistic attitude of the firms.
As a result the customers will be benefited by getting
quality products.
4. Prospects of Customer Choices:
i) By increasing quality more customers as well as market
share can be absorbed.
ii) By producing rare drugs at home, the country can save its
foreign exchange.
iii) By extensive promotional activity, customer choice can be
driven.

5. Prospects of Power Development:
i) By following all the rules and innovating alternative power
supply source, this sector is entering the competitive
market.
ii) Pharmaceuticals may open a big door of prospect in the
foreign market.

 Providing sufficient gas and electricity according to
the demand.
 Political stability is very much needed. Due to strike &
other political unrests the marketing process is being
interrupted & the distribution channel lose their
natural speed.
 80% of the raw materials of this industry are imported
from foreign countries. If the raw materials can be
produced sufficiently in the domestic level, the
pharmaceutical companies will be able to supply
according to the demand.

 Upgrading the regulatory body to WHO standard. It
will let Bangladesh enter into the global market and
thus will increase the production a great deal.
 Like India & other competitor countries, bank loan
interest rates should be reduced for this industry.
If these recommendations can be implemented, the
Pharmaceutical Industry of Bangladesh will be able to
shine in its true sense.