Tk65,000 imported injection contains no antidote to cancer: Incepta MD

An imported injection, priced at Tk65,000 per unit and used in the treatment of cancer, has been found to contain no antidote to the life-threatening disease, leaders of the country's drug manufacturers said in a bombshell revelation.

"After collecting samples from the market, Incepta Pharmaceuticals tested and found that there is no anti-cancer drug in that medicine," said Abdul Muktadir, president of the Bangladesh Association of Pharmaceutical Industries (BAPI), today (30 May).

Muktadir, who is also the managing director of Incepta, shared the information while speaking at a press conference about substandard and fake medicines available on the market.

After the press conference, The Business Standard asked him whether Incepta had informed any government authorities regarding the results of the test.

In response, he said, "These are randomly collected anonymous samples. We do not report these anywhere, and I cited it as an example to refer to the status of products with no brand names."

During the press conference held at Incepta's head office in the capital's Tejgaon, Muktadir said there are three types of medicines in the country's market – standard, substandard, and fake.

Currently, doctors write companies' brand names instead of generic drugs in prescriptions, but many advocate writing the generic names. If this is done, it will depend on the vendor and the insurance company to determine which drug patients will receive. This will lead to an increased prevalence of substandard drugs. It will also be difficult to control prices, he said.

The association president highlighted the current economic situation, including the rising prices of raw materials and import duties, the increased exchange rate of the dollar, and the state of the pharmaceutical industry.

He also discussed the impact on drug patents and the export market after Bangladesh's graduation from LDC status in 2026, and its effects on drug quality, prices, and marketing costs.

Abdul Muktadir said 98% of the country's demand for drugs is met by local companies, a position achieved with continuous government support. Similarly, the pharmaceutical industry contributes significantly to the country's economy.

He mentioned that the devaluation of the taka has created significant pressure on the industry. Currently, it is buying the dollar at Tk117.50 or higher in some cases. Gas and electricity prices have also increased.

For example, Incepta now pays gas and electricity bills of Tk19 crore per month, compared to just Tk9 crore two years ago. Additionally, the bank loan interest rate has increased. Previously, loans were available at 7%-8% interest; now, working capital loans have to be taken at 13%-14% interest, he continued.

The salary of the workers had to be increased from 70% to 100%, which increased the cost of production. However, as production costs have risen, the price of medicine has not increased at the same rate, to keep it within people's purchasing power. This has reduced drug company profits, and the pharmaceutical industry as a whole is going through a tough time.

He said entrepreneurs in the pharmaceutical sector believe this difficult period is temporary. They must accept the current situation, which will eventually improve. In 2022, the pharmaceutical market in the country was estimated to be $3.2 billion, which has now fallen to around $2.7 billion. However, the market will grow again in the future.

In response to a question, he said due to the decrease in people's purchasing power and the increase in the value of the dollar, the medicine market has become smaller.

He said the government is trying to increase revenue collection from the same areas. However, many eligible individuals and entities in the country are not paying taxes. Initiatives are needed to collect taxes from them.

At present, a 7.5% duty is payable on the import of key raw materials for medicines, and the import duty on packaging products is 15.5%, he said, adding these duties should not be increased in any way.

He said a type of plastic is imported for the spray used in the treatment of heart disease and hypertension. The National Board of Revenue has categorised this plastic as ordinary plastic, taxing it at 127%. However, considering these are raw materials for medicine, the duty rate should be 15.5%.

He said to export medicines, registration, clinical trials, and other expenses have to be incurred abroad, ranging from $50,000 to $300,000. Additionally, drug exporting companies also have to send expenses for liaison offices and staff salaries abroad. Currently, they face a 40% tax when sending these expenses abroad.

He demanded the withdrawal of this tax in the upcoming budget to increase competitiveness in pharmaceutical exports.

Regarding the intellectual property of medicine, he said after 2026, medicines cannot be produced without a patent. The pharmaceutical industry association is working with the government to prevent key manufacturers from obtaining patents and to secure patents for new drugs entering Bangladesh by 2026.

He noted that currently 1,900 types of medicines are produced in the country, and 300 among these types are exported. Several drug patents have been acquired by Bangladeshi companies, he said without specifying the number. By 2026, it is expected that 100% of essential medicines will be registered in the country.

He highlighted the increased capacity of the country's pharmaceutical industry over the last five years, including the ability to manufacture drug APIs. Now, many companies in Bangladesh can produce the main ingredients of any medicine.

Regarding drug prices, he said the cost of importing raw materials has increased by 35%, along with other costs, while drug prices have only increased by 5%.

Addressing allegations of providing benefits like houses, cars, ACs, fridges, TVs, and mobiles to doctors, he said the pharmaceutical industry association is working to ensure marketing expenses remain within regulations.

Costs are being reduced, with events previously held at star hotels now being conducted at the relevant institutes or elsewhere. Effective market competition should further reduce such costs and improve the quality of medicines. Necessary initiatives are also needed to combat fake and adulterated medicines, he added.