Bangladeshi Pharmaceutical Industry: PESTLE Analysis

Bangladesh pharmaceutical market in 2011 stood at approximately US $ 800 million, which is very small when compared to the population base of the country, which currently stands at about 140 million. To put this number on a proper perspective, the total global pharmaceutical sale in 2011 was $600 billion. This is expected to grow about $730 billion in 2013. Of course the majority of the sale in 2011 was in brand products, the market segment where Bangladesh does not or is not expected to participate in the very near future. However today, the pharmaceutical companies in Bangladesh are one of the fastest growing sectors in the nation. Prior to post-liberation, the Multinational companies used to dominate the market but today this situation has been completely reversed. Now approximately 80% of the domestic pharmaceutical need is met by the local companies. In2004, according to IMS data, the pharmaceutical industry in Bangladesh grew by approximately 20%. Today, there are about 225 registered pharmaceutical manufacturer’s in Bangladesh. However, it is reasonable to assume that 75% to 80% of the revenues are generated by the top 10 to 15 companies. The same top 5% of the companies are also engaged in exporting finished products to 62 countries around the world. The total pharmaceutical export in 2010 was about $80 million compared to $60 million in the previous year. By any measure, these are very small numbers, particularly in a country that is allowed to manufacture patented drugs and export to the least developed countries (LCD) of the world. This exemption, with respect to the patent would extend into 2016 creating Avery favorable environment for both domestic and foreign investments.

HRPP OF CURE PHARMACEUTICAL

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