Bangladesh can achieve a robust increase in pharmaceutical export if the ‘Active Pharmaceutical Ingredient Industrial Park’ is established.
Official sources said construction of the lone medicine-based industrial park of the country is set to be completed by June this year.
According to sources, the production of high-quality pharmaceuticals has been gradually gaining global recognition and as such the policy focus is on earning over a billion dollar from the industry annually from its exports.
The industry’s strength would be boosted further when the ‘API Industrial Park’ goes into production by end of this year. This addition would make a huge difference in the global drug export competition, claimed sources.
The much talked about the pharmaceutical industry is now set to make significant improvement in quality and quantity and may perhaps be one the leading pharmaceutical exporting nations in the world. In fact, Bangladesh’s pharmaceutical exports soared about 26 percent year-on-year to $130 million in 2019 as it continues to improve.
The industry has developed skilled manpower and improved quality and at the same time more effort is being put to win the global market. The prospects of the industry’s growth look strong that reflects on average 14.6 percent growth between 2011 and 2018.
The global pharmaceutical exports are still in the hands of the European countries. According to an international economic survey, European countries sold the highest dollar value worth of exported drugs and medicines during 2018 with shipments from Europe totaling $295.8 billion or 79.7% of the global total.
But with the gradual annual growth of the industry and support of the government, Bangladesh is predicted to earn over a billion dollar annually from the exports of drugs and may exceed giant drug exporting countries like Germany, Switzerland, France, Belgium and UK, China and India.
Bangladesh has skilled but cheaper technology and the experiences and so catching up with the global market is not so difficult provided policy continues to support the industry.
Local reputed companies dominate Bangladesh’s pharmaceutical industry. Square Pharmaceuticals is the major player with 18.8 percent share, followed by Incepta at 10.2 percent, Beximco 8.5 percent, Opsonin 5.6 percent, Renata 5.1 percent and Eskayef 4.5 percent, according to the Bangladesh Association of Pharmaceuticals Industries (BAPI).
The construction of country’s lone medicine based ‘Active Pharmaceutical Ingredient (API) Industrial Park’ expected to be completed by end of this year, surely would make a huge impact helping to substantially boost drugs. The industry have the potentials of becoming the second largest expor earner in Bangladesh after the garments industry.
The industry insiders are hoping that once the API is fully operational it will help to reduce the import dependency of raw materials as well as help to boost the export of the country’s manufactured drugs to global destinations.
In order to facilitate the supply of drugs’ raw materials and reduce import dependency as well, the API construction is going on in full sewing at Gazaria, Munshiganj.
During December last, President of Bangladesh Pharmaceutical Industry Association Nazmul Hasan while inaugurating the construction work of Central Effluent Treatment Plants (CETP) said, “We are producing 98 percent medicine but our raw material import is 95 percent. Once the API is operational, it will help to reduce import dependency and increase export.”
Earlier, Prime Minister Sheikh Hasina discussed the issue with her cabinet members on the importance of producing raw materials of pharmaceuticals in the country.
The government has attached the highest importance to raw material production for the pharmaceutical industries as they export medicines.
“The Active Pharmaceutical Ingredient Industrial Park will be completed this year at a cost of taka 213 crore. When the industrial park goes into operation, it will produce the raw materials including sophisticated drugs,” a highly placed source in the health ministry said.
The initiative to build the API Park by the Dhaka-Chittagong Highway under Gazaria upazila of Munshiganj for Tk 331 crore was taken in January 2008. But due to schedule extension and other issues now the construction cost stood at Tk 331 crore. The government has given strict order to complete the work by June this year.
At present, 24,000 brand medicines are being produced in the factories of 257 companies of the country. About 25,000 crore drugs and raw materials are being produced in these factories annually, where two lakh people have been employed there.
The medicine industry has been brought under special facilities in the budget of 2018-2019 fiscal year. The government is providing 25 percent incentives in medicine sector. Besides, importers will get 20 percent duty discount on import of raw materials.
To this end, SM Shafiuzzaman, Director General of the Drugs Traders told the media, “As we are producing all types of medicines, we are growing rapidly. Soon our export will jump to billion from million dollar.”
About the quality of locally produced medicine, Major General Mahabubur Rahman, Directorate General of Drug Administration said, “We are strictly monitoring for quality of the locally produced medicines. After several inspections, we allow certain companies to go for full production”.