Pharma sector needs foreign investment to cope with post-LDC challenges

Bangladesh's pharmaceutical sector needs investments by global pharma powerhouses and joint collaboration between them and local drug makers to cope with post-LDC challenges, according to industry experts and stakeholders.

Once Bangladesh graduates from least developed country (LDC) status in 2026, the free patent benefits for drug production will no longer be applicable. As a result, medicine production will get tougher and Bangladesh must prepare from now to ensure that medicine prices stay within people's reach, they explained at a session on the third and final day of the Bangladesh Business Summit 2023 on Monday.

The drugs currently produced under the free patent facility will continue to enjoy the facility until 2033 thanks to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. Free patent benefit for any new generic after 2026, however, will not be applicable, speakers elaborated at the session moderated by Economic Relations Division Secretary Sharifa Khatun.

"Post-LDC graduation was never smooth sailing for any country. We also must win over the challenges as other countries have done," Nazmul Hasan, President of Bangladesh Association of Pharmaceutical Industries (BAPI), said in his remarks as chief guest on the occasion.

"There are two ways to navigate through this challenge. First, bring in direct investment from global drug makers and, second, go for collaboration between foreign and local drug makers to manufacture medicines under licences from global pharmaceutical companies," added Nazmul Hasan, who also serves as managing director of Beximco Pharmaceuticals Ltd.

Photo: Rajib Dhar

Highlighting the remarkable progress made in the country's pharma sector, he said, "More than 30 local companies are manufacturing medicines by using the latest technologies and maintaining international standards. Our companies are meeting 97% of local demand."

Nazmul Hasan also pointed out that medicines produced by local drug makers have received export approvals from countries like the USA, Australia and major European countries.

Currently Bangladeshi drug makers are exporting to 157 countries annually, he said.  

He also said that the global drug giant GlaxoSmithKline (GSK) has shifted its factories from the UK to Singapore to reduce the cost of drug production.

"But Bangladesh can produce medicine at 30-40% less cost than Singapore. We have the ability to be a global drug maker hub," said the Beximco Pharma managing director, citing the example of one of the Covid-19 drugs – Remdesivir, which local pharmas, including Beximco, are selling for $10 against $1,000 in the US and European markets while maintaining the same standard.   

The session's keynote speaker and Incepta Pharmaceuticals Managing Director Abdul Muktadir said, "Except for China, India and the western world no other country is as good as Bangladesh in pharmaceuticals. So Bangladesh has a tremendous opportunity to increase participation in the global market."

Abdul Muktadir, who is also vice president of BAPI, said that investment should be increased in Biosimilar, Vaccine, Active Pharmaceuticals Ingredient (API) and Global Generic Export  "to tackle the post-LDC challenges.

"The global generic drug market is worth $400 billion, of which if we can grab even 1%, our exports will go up to $4 billion. And if you can grab 10%, it will be $40billion," he said, adding, "We have that ability. Only a few countries have a competitive advantage like ours."

Dr Yum K Tam, president of Sinoveda Canada Inc, Debojyoti Banarjee, country head of Medtronic Bangladesh Pvt Limited, Dr Riad Mamun Prodhani, managing director and country president at Novartis (Bangladesh), Rajarshi Dey Sarkar, vice president and general manager of Novo Nordisk Bangladesh and Professor Dr Shahla Khatun, governing body chairman at Green Life Medical College Hospital, were present at the session.

The three-day business summit, which was inaugurated on Saturday at the Bangabandhu International Conference Centre in Dhaka, is being hosted by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) – the country's apex trade body.