08/12/2023
The World Trade Organization's (WTO) Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement permits Bangladesh to reverse-engineer patented generic pharmaceutical products to sell locally and export to markets around the world. The TRIPs agreement is turning Bangladesh into a hub for affordable and high-quality generic medicines and contract manufacturing, with exports to potentially more than 85 countries across the world.
More than ten leading Bangladeshi pharmaceutical companies are exporting generics to international markets. Bangladeshi pharmaceutical companies focus primarily on branded generic final formulations, using both imported and domestically produced Active Pharmaceutical Ingredients (APIs). About 85 percent of the drugs sold in Bangladesh are generic and 15 percent are patented drugs. There are currently around 100 Bangladeshi pharmaceutical companies in operation. The industry is highly concentrated as the top 20 companies generate 85 percent of the revenue. Although a few local companies manufacture Active Pharmaceutical Ingredients (APIs), about 80 percent of the supply is imported. The government has set up an API park to facilitate the production of several APIs for local manufacturers. Costs of APIs are estimated to decrease by about 20 percent if the API Park is established fully. A total of 42 industries will be set up in the park, which will hold the potential to significantly boost the pharmaceutical sector in the country and create employment for more than 35,000 people.
