The Pharmaceutical Industry

Abstract

The pharmaceutical industry is globally known as the fastest growing industry in the world. With revenues of USD 518 billion and 9% of global GDP in the year 2007, Pharmaceuticals have a reputation for having the highest profit margin in the world. Bangladesh possesses a sizeable pharmaceutical industry that has the potential to live up to global standards. The country can expand its economic growth by investing in their fast growing pharmaceutical industry which has an annual average growth rate of 16% and a market size of BDT 30 billion in 2007 according to International Management System (IMS). It employs around 75,000 skilled and unskilled employees and is considered to be the second largest contributor to country’s national revenue  (Bangladesh  Gazette).  This sector   is   the   second   largest   contributor   to   the   Govt. exchequer, employing around 75,000 skilled & unskilled employees. With huge demand-supply gap, major players see basic chemicals as the greatest opportunity for expansion and better control over formulation industry forces.

Key Words: Medicine, Drug, Brands, Expansion, Performance, Domination, Profit.

Introduction

Pharmaceutical is one of the highest priority sectors in Bangladesh. There are more than 230 small, medium, large and multinational companies operating in the country producing around 97% of the total demand (Bangladesh Bureau of Statistics (BBS), Annual Bulletin -2008) The sector is the second highest contributor to  the  national  ex-chequer  after  tobacco  and  it  is  the  largest  white-collar intensive  employment   sector  in  Bangladesh.  95%  of  the  total  demand  of Bangladesh is being met by  local manufacturing (Ministry of health of BD, Half yearly assessment report published in 2007). The remaining 5% basically constitute import of much specialized products like  vaccines, anti-cancer products and hormone drugs (Bangladesh Pharmacy Council (BPC), Annual Report -2009). The country can continue to produce patented products  until 2016 as per trade related intellectual property rights (TRIPS).

Objectives of the Study

[pic 1]

Broadly the objective of the study is to make familiar with the present status of pharmaceutical industry of Bangladesh. Specific objectives are:

[pic 2][pic 3]To present historical background of pharmaceutical industry of Bangladesh. To present the overall situation of pharmaceutical industry of Bangladesh.

[pic 4][pic 5]To identify the existing problems in pharmaceutical industry of Bangladesh. To show the trend of pharmaceutical industry.

[pic 6]To provide some guidelines to policy makers.