Pharmaceutical sector to face pressure from LDC graduation
Hard to stay price-competitive without higher R&D investment, say experts
Bangladesh's pharmaceutical industry may face major pressure after the country graduates from Least Developed Country (LDC) status, stakeholders warned.
They said many medicines currently produced under patent waiver facilities may no longer be manufactured without licences from international companies once those benefits end. This could raise production costs and push up medicine prices.
Experts said Bangladesh will struggle to remain competitive in international markets unless investment in research and development (R&D) increases. They also warned that next-generation medicines for cancer and other complex diseases could become unaffordable for ordinary people.
Keep updated, follow The Business Standard's Google news channel
The issues were discussed today (13 May) at a workshop held at Pan Pacific Sonargaon Hotel in the capital. The inception workshop, titled "Strengthening Competitiveness and Innovation of the Pharmaceutical Industry for Sustainable Growth in the Context of LDC Graduation," was jointly organised by the Asian Development Bank (ADB) and the Health Economics Institute.
The keynote paper was presented by health economist Professor Dr Syed Abdul Hamid. He said Bangladesh is currently able to produce many generic medicines without licences from global companies, helping keep production costs low and prices affordable.
"The situation may change after LDC benefits expire," he said.
"Production of newly patented medicines would then require licences, compliance with international standards, and mandatory bioequivalence and biosimilar testing. Most local firms are not yet fully prepared for this, meaning tests may need to be conducted abroad, increasing costs," the professor added.
He warned that the biggest impact could fall on medicines for cancer and other complex diseases, with prices potentially rising several times.
Concerns were also raised about the pharmaceutical raw materials sector. Professor Hamid said many key recommendations in the 2018 API policy have not been implemented. He added that the API Industrial Park in Gazaria, Munshiganj, is still not fully operational. Bangladesh also remains behind in achieving the World Health Organization's Maturity Level-3 status.
Bangladesh API and Intermediaries Manufacturers Association (Baima) President SM Saifur Rahman said an ADB-backed study on the issue was conducted in 2016, followed by a policy in 2018. However, implementation progress has been very limited. He said the industry cannot advance without effective policy execution and asked whether ADB could provide support.
Speaking as chief guest, Finance Adviser to the PM Dr Rashed Al Mahmud Titumir said Bangladesh's pharmaceutical sector would face major challenges after losing LDC benefits. He said patent waiver expiry, higher compliance costs and mandatory international standards could increase medicine prices and weaken export competitiveness.
However, he said new opportunities could emerge if investment rises in research, biotechnology and API production. He also stressed the importance of keeping regulatory bodies free from the influence of vested groups.
