What the pharma sector needs to keep medicine prices even lower?

Owing to the Drug Policies of 1982 and 1994, Bangladesh's pharmaceutical industry developed rapidly in both domestic and international markets. However, in recent years, industry owners believe the sector has been facing serious challenges due to a reverse trend of deregulation. 

The current state of Bangladesh's pharmaceutical industry

To understand the evolution of Bangladesh's pharmaceutical industry, we need to look back a bit. In the very early days, when the industry virtually did not exist in the country, a few young people who had studied pharmacy in Europe and America returned home. At that time, there was neither an industry nor any structured framework for the pharmacy profession in Bangladesh.

The establishment of the Department of Pharmacy at the University of Dhaka in 1964 was a historic milestone. From 1967 onward, pharmacists began graduating, creating the human resources necessary for building the industry. After independence, particularly during the wave of industrialisation in 1976, many local pharmaceutical companies emerged.

The Drug Policy of 1982 was a major turning point. Through this policy, local pharmaceutical companies were given certain protections and advantages. As a result, domestic firms gradually became stronger and dependence on multinational companies declined.

Before this policy, the market was dominated by alcohol-based tonics and unnecessary vitamins, which contributed little to actual medical treatment. After 1982, the industry slowly shifted toward producing medicines based on real therapeutic needs.

Then came the Drug Policy of 1994, which was truly groundbreaking. Through this policy, the government of Khaleda Zia undertook extensive deregulation and largely left drug pricing to market forces. This created an investment-friendly environment and made it easier to introduce new medicines to the market.

We reaped the benefits of this policy very quickly. Within just three to four years, local companies were able to supply nearly 95% of the country's total medicine demand. At the same time, exports began, and today Bangladesh exports pharmaceuticals to more than 150 countries.

However, problems began after 2017. Although there was no formal change in government policy, at the implementation level a renewed tightening of regulations started. There has been a tendency to squeeze the pharmaceutical industry in various ways, often beyond the scope of the law.

Are drug prices high in Bangladesh?

The media was used to promote narratives that drug prices in Bangladesh are high, that company profits are abnormal, and that medical representatives harass doctors. In reality, these allegations were not backed by data-driven analysis. The impact is now visible. In 2026, we are witnessing a dire picture. Around 70% of the top 100 companies are experiencing negative growth. Between 30% and 40% of small and medium-sized companies have already shut down or are on the verge of closure.

The reasons are very clear—new drug registrations are not being approved, and there has been no opportunity to adjust medicine prices for several years. Large companies can manage to some extent through a portfolio of thousands of products, but small companies do not have that capacity. At least 40 small companies have already closed or are about to shut down.

Due to the constrained policy environment we are operating in, the pharmaceutical industry has reached this state, and even the profitability of large companies has continued to decline. If this continues, the investments that were supposed to be made will no longer be possible, even for these companies. An exceptionally promising emerging industry is being strangled outright.

The idea that medicine prices in Bangladesh are high is completely wrong. We have compared prices with India and several other countries. India is often called the 'pharmacy of the world'. Yet, for 10–20 commonly used medicines in Bangladesh, prices are in most cases lower than in India. When India itself produces its own raw materials, and our prices are still lower, it clearly shows how much pressure our industry has been kept under.

Why are we still lagging behind in the API industry?

There are two major problems in the API industry. First is the shortage of primary energy, especially gas.

Whether the government can resolve the gas crisis even if it wants to is uncertain, because it is a very large issue. But that does not mean we will simply shut down because there is no gas. In that case, we must think of alternatives.

Second is the complex approval process under the Narcotics Act. To import certain solvents and intermediates, obtaining narcotics permission requires going through 30–40 desks and takes six to eight months. No industry can survive under such conditions. These complexities do not exist in India, China, Vietnam, Europe, or America. They all have narcotics departments too. What we need is a properly structured system where permissions can be obtained online through an open process.

Expectation from the new government

Our expectation is very clear. We must return to the spirit of deregulation of the 1994 policy. Whatever can be done within the law should be done. The time has come for smarter deregulation so that the industry can move into backward linkages.

To operationalise the pharmaceutical industrial park, the Ministry of Industries should sit with us and arrange alternative solutions so that we can start industries there.

Both the Narcotics Department and the Drug Administration must be made online and time-bound. An open system should be introduced where permissions are granted within 15 days. This will reduce corruption and increase investment.

Vision for the future

We want Bangladesh not only to meet domestic demand but also to export all types of pharmaceutical products—including APIs, vaccines, and biologics—to the global market. When that happens, people in the country will get medicines at even lower prices.

The author is also the Chairman and Managing Director of Incepta Pharmaceuticals Ltd.

Abridged from an interview on 'TBS Future' hosted by TBS Executive Editor Shakhawat Liton.