Boosting local API production key to competing globally: Pharma experts

Highlights:

• Bangladesh produces only 41 of 400 needed APIs, relying on imports for 80%
• Pharma market is worth $2.92b, projected to hit $6.17b in five years
• Local firms meet 98% of medicine demand, but API imports limit global reach
• Bapi urged a one-stop service, citing four-agency approval delays for API production
• Experts warned losing LDC trade perks will raise medicine costs due to pricier APIs
• Boosting local API output is key to offset LDC benefit losses

Bangladesh must prioritise the domestic production of active pharmaceutical ingredients (APIs) to secure a strong foothold in the global export market and mitigate potential challenges after graduating from least developed country (LDC) status, according to pharmaceutical industry experts. 

This message was stressed at a workshop held today at the Bangladesh Association of Pharmaceutical Industries (Bapi) office in Tejgaon, Dhaka.

The workshop, organised by Bapi in collaboration with the Bangladesh Health Reporters Forum, discussed the significant reliance of the local pharmaceutical industry on imported APIs.

Despite the need for 400 different APIs for medicine production, only 21 companies in Bangladesh currently produce a mere 41 types. This forces pharmaceutical manufacturers to import approximately 80% of the APIs they require.

"There are 307 pharmaceutical companies in the country, both large and small. Bangladeshi medicines are now exported to over 150 countries. Last year, the pharmaceutical market was worth $2.92 billion, and it is expected to grow to $6.17 billion within the next five years," said Md Halimuzzaman, CEO of Healthcare Pharmaceuticals Ltd and treasurer of Bapi.

"Local companies currently supply 98% of the country's medicine needs. However, the lack of domestic API production makes it hard for Bangladeshi companies to compete with foreign firms in global markets," he added.

Md Zakir Hossain, managing director of Delta Pharma Ltd and secretary general of Bapi, called the pharmaceutical sector "one of the fastest-growing and most important industries in Bangladesh."

He added, "At the Pharmaceutical Industrial Park in Gazaria, Munshiganj, 27 companies have been allotted 42 plots. Out of these, 15 are expected to start production, while the rest may eventually merge with other companies."

Zakir Hossain also pointed out the challenges in setting up API production facilities. "Starting API production requires approval from four different agencies. Despite repeated requests for a one-stop service, the government has yet to take any action," he said.

M Mohib Zaman, managing director and CEO of ACI Healthcare, highlighted the future risks of losing LDC-related trade advantages.

"The LDC status has so far protected our pharmaceutical industry. It allowed us to bypass many regulations and requirements. But once Bangladesh becomes a middle-income country, these benefits will end. After that, companies will have to buy APIs from parent companies at prices set by them, which will raise the cost of medicines. To avoid this, we need to strengthen local API production and reduce import dependency," he said.

He also assured that the quality of medicines sold in the local market is the same as those exported.

Bangladesh Health Reporters Forum President Rashed Rabbi and General Secretary Mainul Hasan Sohel also spoke at the event.