Pharmaceutical Industry Analysis in Bangladesh

Topics: Pharmaceutical industry, Pharmacology, Drug discovery Pages: 37 (11069 words) Published: September 16, 2013
PHARMACEUTICAL INDUSTRY ANALYSIS

Industry Background:

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.

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.

Growth & 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 their products. On the other hand, the constant natural disasters provide opportunities to pharmaceutical companies to boost its sales. The industry is growing the protection of national Drug Policy 1982. But after the GATT regulation, changes are bound to take place. Furthermore, the trend & growth of this industry tends to be positive as the demand of medicines is rising, which have mentioned earlier.

HEALTHCARE AND PHARMACEUTICAL SECTOR: AT A GLANCE

Particulars Number/Quantity
Total Area of Bangladesh 147,570 Sq.Km
Population more than 133.40 million
Crude Birth Rate (CBR) 19.00 (per 1000)
Crude Death Rate (CDR) 4.90 (per 1000)
Per Capita Annual Income (CAI) 470 (in US$)
Total National Export 6,889.30 million US$
Total National Import 10,903.00 million US$
Number of Countries Exported (P/ products) 62 nos.
Total Number of Registered P/Industries 235 nos.
Total Number of P/Industries in operation 154 nos.
Total Market Size 697 million US$
Percentage of Production of Local Industries 96%
Percentage of Import against local market 4%
Number of drugs produced by local P/C 450 generic items
Number of drugs controlled 117 generic items
Number of drugs decontrolled 333 generic Items
Number of drugs mostly demanded 50 generic Items
Number of Industries producing raw materials 21 companies Number of API being produced 41 Items
Drugs produced in generic Name 450 items
Drugs produced in brand Name 5,000 items
Drugs produced in strength (number ) 8,000 items
Contribution to the revenue sector 5.00 US$
Contribution to the GDP 1.25 percentage
Total Employment Creation (more than) 78,000 nos.
Number of Licensed Chemist (Drug seller) 68,000 nos.
Number of Chemist without License 52,000 nos.

Factor Endowment:
In economics a country’s factor endowment is usually understood as the amount of land, labor, capital and infrastructure that a country or industry possesses and can exploit for manufacturing. Industries with a large endowment of resources tend to be more prosperous than those with a small endowment. The development of sound institutions to access and equitably distribute these resources, however, is necessary in order for an industry to obtain the greatest benefit from its factor endowment. Nonetheless, the new world economies inherited attractive endowments such as ideal weather condition, suitable size of the industry or skillful manpower. In case of pharmaceutical industries in Bangladesh, they have invested in land to increase their business widely within and across the country. Day by day this sector is making a random physical change to grasp the...
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