Building On Bangladesh Advantage

While 97% of demand for finished-dosage forms in Bangladesh is met by local manufacturers, the domestic industry remains largely dependent on raw materials imported from abroad, from countries such as China and India. In a strategy designed to capitalise on several national advantages – not least labour costs that are estimated to be 30% to 50% below those in China and India – Bangladesh’s government is looking to make the country more self-sufficient for active pharmaceutical ingredients (APIs) as part of a broader identification of pharmaceuticals as a key growth industry.

To that end, the government has established an API industrial park, a special economic zone (SEZ) at Munshiganj, 37km from Bangladesh’s capital city, Dhaka. Within the park, Beximco Pharma has secured two plots covering around seven acres. Land-development work is presently underway, and the company believes it should have facilities commissioned at the site within the next two to three years.

“The government recognises that Bangladeshi pharmaceutical companies, while strong in finished dosage form manufacturing, are currently importing a significant amount of raw materials from other countries,” Beximco’s chief operating officer, Rabbur Reza, told Generics bulletin. In addition to the advantages conveyed by the SEZ such as tax breaks, lower-cost utilities and a 20% cash incentive for exports, Reza pointed out that local bulk-drug producers would also benefit from Bangladesh’s inclusion as a least developed country (LDC) in the patent-waiver period running until January 2033. This is under the World Trade Organization’s (WTO’s) agreement on trade-related aspects of intellectual-property rights (TRIPS).

“On account of the TRIPS agreement, India cannot produce patented APIs. This is a benefit for Bangladeshi pharmaceutical companies because we can use those patented molecules for our own consumption. If we can produce 50 patented molecules, our import reliance will decrease to 75%,” Reza commented.

The company, which is collaborating with several global API manufacturers, is also setting up a ‘Unit II’ plant for small-volume, high-value APIs for tech-transfer to the government-backed API technology park once constructed.

Alliances, An Acquisition And Investments Drive Beximco

More from Generics

More from Products