Bangladesh Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Bangladesh's pharmaceuticals and healthcare industry.
Bangladesh’s pharmaceutical industry, which was worth US$1.40bn in 2010, is fairly typical for South Asia. Growth is high but per-capita spending remains low. The market is also characterised by the ability of those on high incomes to purchase expensive patented drugs, while the vast majority of the population make do with frequently sub-standard over-the-counter (OTC) preparations. Local pharmaceutical companies and those multinationals with manufacturing facilities in Bangladesh cater for approximately 95% of domestic demand. Of the 49 UN-decreed Least Developed Countries (LDCs), Bangladesh is the only one that is nearly self-sufficient in terms of pharmaceutical production.
Headline Expenditure Projections
- Pharmaceuticals: BDT97.45bn (US$1.40bn) in 2010 to BDT113.14bn (US$1.59bn) in 2011; +16.1% in local currency terms and +13.5% in US dollar terms. Forecast up moderately from Q211 due to macroeconomic factors.
- Healthcare: BDT242bn (US$3.48bn) in 2010 to BDT269bn (US$3.78bn) in 2011; +11.3% in local currency terms and +8.8% in US dollar terms. Forecast unchanged from Q211.
- Medical devices: BDT11.47bn (US$165mn) in 2010 to 12.55bn (US$176mn) in 2011; +9.4% in local currency terms and +7.0% in US dollar terms.
Forecast up marginally from Q211 due to analyst modification.
Business Environment Rating: Bangladesh’s pharmaceutical Business Environment Rating (BER) in Q311 remains unchanged at 40.6 out of 100, which is well below the average of 53.1 for the region. The country has moved down one place to occupy 15th position, behind Pakistan and has an unchanged Industry Rewards score of 43. Despite its current ranking, BMI expects Bangladesh’s position to improve over the medium term as a result of rising population numbers, economic improvements and the efforts made by domestic firms to expand both their products portfolios and overseas markets.
Key Trends & Developments
- The Bangladesh government announced that it would establish an active pharmaceuticals ingredient (API) industrial park to aid the local pharmaceutical industry and boost exports. It is hoped that the majority of pharmaceutical raw materials could be produced locally when the project is implemented in 2012. The planned investment is also designed to provide a stimulus to contract manufacturing capabilities in Bangladesh. Estimates suggest that the domestic pharmaceutical sector could earn approximately BDT200bn (US$2.72bn) per year.
- Figures derived from the latest Household Income and Expenditure Survey has revealed that the level of poverty in Bangladesh has dropped to 31.5% over the course of 2010, reflecting an 8.5 percentage point decline over the last five years. The findings of the latest HIES report compiled by the Bangladesh Bureau of Statistics has shown that the reduction of poverty levels in rural areas has played a key role in reducing the prevalence of hunger in the country.
- The number of diabetic patients in Bangladesh is increasing at an alarming rate with approximately 5.7mn people diagnosed with the disease. The number of patients is growing annually at a rate of 3%, with estimates suggesting that at current growth rates, the number of diabetics in Bangladesh could reach 10.4mn by 2030. At present, India and Bangladesh have the highest number of diabetic patients in the South-East Asian region.
- A report published in April 2011 suggests that elderly people living in Dhaka’s slums are highly vulnerable to illness due to an absence of basic civic amenities. The report has found that poor, elderly people in the capital’s slums face numerous challenges in obtaining healthcare, financial support, work opportunities, an improved living environment and infrastructure development.
Economic View: As Bangladesh’s economy develops, drug market expenditure as a percentage of GDP is forecast to increase from 1.4% in 2010, to 1.5% in 2020. Increased wealth should translate into greater out-of-pocket spending by consumers and a greater proportion of public funds being directed to healthcare projects, especially among the poor. The main drivers of medicine sales in Bangladesh will therefore stem from increased government involvement in healthcare, a greater prevalence of chronic disease in high-income groups and the adoption of modern marketing techniques by local drug manufacturers.
Political View: The Bangladesh government is committed to expanding access to medical services in general and pharmaceuticals in particular. Under the constitution of the People’s Republic of Bangladesh (amended May 17 2004), the state regards ‘raising the level of nutrition and the improvement of public health’ as one of its primary duties. Although healthcare is mainly provided through government-run hospitals or private clinics, the country’s state-run healthcare facilities are oversubscribed, short-staffed and lacking equipment, especially those outside of the large cities. Nevertheless, efforts are being made to improve healthcare services. SHOW LESS READ MORE >
Bangladesh Pharmaceuticals And Healthcare Industry SWOT
Bangladesh Political SWOT
Bangladesh Economic SWOT
Bangladesh Business Environment SWOT
Pharmaceutical Business Environment Ratings
Table: Asia Pacific Pharmaceutical Business Environment Ratings For Q311
Table: Steps Required To Establish Pharmaceutical Manufacturing Unit And Obtain A Drug Manufacturing Licence (DML)
Pricing And Reimbursement Regime
Industry Trends And Developments
Research And Development
Table: Suggestions Made By University Of Dhaka’s Faculty Of Pharmacy To Improve Pharmaceutical Research Standards
Industry Forecast Scenario
Overall Market Forecast
Table: Pharmaceutical Sales Indicators 2007-2015
Key Growth Factors – Industry
Table: Health Expenditure Indicators 2007-2015
Table: Government Health Expenditure Indicators 2007-2015
Table: Private Health Expenditure Indicators 2007-2015
Table: Bangladesh – Economic Activity
Prescription Drug Market Forecast
Table: Prescription Drug Sales Indicators 2007-2015
Patented Drug Market Forecast
Table: Patented Drug Sales Indicators 2007-2015
Generic Drug Market Forecast
Table: Generic Drug Sales Indicators 2007-2015
OTC Medicine Market Forecast
Table: OTC Medicine Sales Indicators 2007-2015
Pharmaceutical Trade Forecast
Table: Pharmaceutical Imports & Exports Indicators 2007-2015
Other Healthcare Data Forecasts
Key Risks To BMI’s Forecasts
Recent Activities By Foreign Companies
Recent Activities By Domestic Companies
Country Snapshot: Bangladesh Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2001-2003
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2010 (US$)
Table: Average Annual Manufacturing Wages
How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceuticals Business Environment Ratings
Risk/Reward Ratings Methodology
Table: Pharmaceutical Business Environment Indicators
Table: Weighting Of Components