SWOT analysis of Bangladesh Pharmaceuticals And Healthcare Industry

While geographic diversification and investment into the pharmaceutical and healthcare
sector of emerging economies, such as Bangladesh, may be a favourable strategy for any multinational
pharmaceutical company – it is vital that a company recognises both the rewards and the risks present in
a market. With regards to assessing risks in the Bangladeshi healthcare sector, we have identified those
emanating from the state’s political/economic profile (such as high inflation) and industry specific
dangers (such as low per-capita spending and poor access to healthcare facilities) that call into question
the likelihood of anticipated returns being realised over the assessed time period.

Headline Expenditure Projections
Pharmaceuticals: BDT111.10bn (US$1.50bn) in 2011 to BDT124.15bn (US$1.52bn) in 2012;
+11.7% in local currency terms and +1.1% in US dollar terms.
Healthcare: BDT271.27bn (US$3.66bn) in 2011 to BDT304.45bn (US$3.72bn) in 2012;
+12.2% in local currency terms and +1.6% in US dollar terms.
Medical devices: BDT12.91bn (US$174mn) in 2011 to BTD14.44bn (US$176mn) in 2012;
+11.8% in local currency terms and +1.2% in US dollar terms.
Risk/Reward Ratings: In our latest regional Pharmaceutical Risk/Reward Rating (RRR) for Asia Pacific,
Bangladesh has dropped one place to 17th out of the 18 markets surveyed in the region. Its RRR score of
38.3 is dragged down by the particularly poor industry rewards component. While the country’s growing
population represents a potential draw for multinationals, its risks remain elevated.

Key Trends And Developments
• In July 2012, it was reported that the prices of more than 1,200 pharmaceutical products have
increased by 20-100% in Bangladesh in the last few months. The authorities have reportedly
remained indifferent to the issue, which has resulted in price rises by the country’s
pharmaceutical companies at retail level. Drug manufacturers have attributed the price hikes
primarily to the rise in international market prices of raw materials and a fall in the value of the
currency.
• In July 2012, Indian personal and healthcare consumer products company Emami announced
that it is to expand its geographic footprint by establishing a new manufacturing plant in
Bangladesh in FY12/13. Over the next two years, Emami will invest INR150-200mn (US$2.7-
3.6mn) in Bangladesh and the facility will produce personal and healthcare products, which are
expected to increase the share of Emami’s international business.
Bangladesh Pharmaceuticals & Healthcare Report Q412 © Business Monitor International Ltd Page 6

BMI Economic View: As expected, the provisional real GDP growth figure shows the economy slowing
this fiscal year (FY2011/12, July-June), after two consecutive years of accelerating. In FY2012/13, as we
expect domestic macroeconomic conditions to be more stable and supportive (namely on the inflation,
interest rate and exchange rate front), we believe the economy will gradually pick up. That said, our 6.3%
growth forecast remains below consensus, as we remain concerned about the likelihood of the bleak
external environment partially offsetting some of the domestic gains.

BMI Political View: The opposition Bangladesh Nationalist Party’s already-minimal capacity to
influence legislation to incorporate its centre-right and more conservative economic agenda has been
badly damaged by the recent arrest of several of its top leaders due to a mass protest that turned violent.
Coupled with the party’s long-running extended boycotts of parliament, the now-weaker opposition
suggests to us that future legislation (including the upcoming fiscal year’s budget) will likely be even
more absent of conservative measures.

Bangladesh Pharmaceuticals and Healthcare Industry

Published: October 2012                      No. of Pages: 91                       Price: US $ 1175 

 

Table of Contents

Executive Summary 5
SWOT Analysis 7
Bangladesh Pharmaceuticals And Healthcare Industry SWOT . 7
Bangladesh Political SWOT. 8
Bangladesh Economic SWOT ... 8
Bangladesh Business Environment SWOT 9
Pharmaceutical Risk/Reward Ratings .. 10
Rewards .. 11
Risks ... 12
Bangladesh – Market Summary 13
Regulatory Regime 14
Counterfeit Drugs ... 16
Intellectual Property ... 17
Pricing And Reimbursement Regime ... 18
International Collaboration 19
Industry Developments. 21
Epidemiology .. 21
Communicable Diseases . 22
Non-Communicable Diseases . 25
Healthcare Sector ... 26
Healthcare Sector Provision ... 29
Healthcare Sector Financing .. 30
Research & Development ... 31
Clinical Trials . 33
Medical Devices.. 33
Industry Forecast Scenario ... 35
Overall Market Forecast. 35
Key Growth Factors – Industry... 37
Key Growth Factors – Macroeconomic .. 40
Prescription Drug Market Forecast 47
Patented Drug Market Forecast . 49
Generic Drug Market Forecast ... 50
Bangladesh Pharmaceuticals & Healthcare Report Q412
© Business Monitor International Ltd Page 4
OTC Medicine Market Forecast . 51
Pharmaceutical Trade Forecast . 53
Medical Devices Market Forecast .. 56
Other Healthcare Data Forecasts ... 58
Key Risks To BMI’s Forecasts 58
Competitive Landscape 59
Pharmaceutical Industry . 59
Domestic Pharmaceutical Industry . 60
Foreign Pharmaceutical Industry ... 60
Contract Manufacturing . 61
Foreign Company Developments 63
Local Company Developments 64
Pharmaceutical Distribution... 66
Company Profiles .. 67
Local Companies . 67
Eskayef Bangladesh 67
Square Pharmaceuticals . 69
Renata . 72
Beximco Pharmaceuticals ... 74
Multinational Companies . 77
Sanofi .. 77
Novartis .. 79
Demographic Outlook ... 81
Glossary . 85
BMI Methodology .. 87
How We Generate Our Pharmaceutical Industry Forecasts 87
Pharmaceutical Risk/Reward Ratings Methodology ... 88
Ratings Overview 88
Weighting 90
Sources ... 90