An overview of Pharmaceuticals industry in Bangladesh. It re-veils the present B2B relationship. The observation are studied under marketing concept.

1. OVERVIEW OF PHARMACEUTICALS
INDUSTRY
There are about 231 companies
in this sector.
The total number of brands /items that are registered in
Bangladesh is currently estimated to be 5,300.
The approximate total market size is
about Taka 30,000 million per year.
95% of the medicines is produce by the local
companies and the rest 5% is imported.
Local companies are enjoying a market share
reaching around 80%, while the MNCs are having a
market share of 20%.

2. LIFE CYCLE OF
PHARMACEUTICALS PRODUCT

3. SWOT ANALYSIS OF PHARMACEUTICALS
INDUSTRY
Strengths
 There is a large population base in Bangladesh for the
pharmaceutical sector.
 The use of allopathic medicine is increasing with increase
in number of qualified medical practitioners (MBBS
doctors) and health facilities.
 The top local companies are already exporting their
formulation products and have the necessary technology
and capacity to produce world standard products.

4. Weaknesses
 Although Bangladesh manufactures 95% of the necessary
formulation drugs it is heavily dependent on imported raw
materials for their production.
 The economy of the country is not strong enough to
support the drug manufacturing industry to the extent that
bulk drug manufacturing can begin based on the local
demand only.
 Compared to China and India, Bangladesh pharmaceutical
industry operates in a much smaller internal market with
an even weaker economy.

5. Opportunities
 From 2005 onwards Bangladesh being a member of LDC
will be allowed to produce cheap copies of patented drugs
and their raw materials.
 As Indian and Chinese companies will not be able to
produce patented active ingredients but they have the
necessary technology and expertise in reverse engineering
and chemical synthesis they will be more interested in co-
operation with Bangladesh after 2005.
 The government has decided to set up an API park in
Chittagong with the facility to house 20 plants and
investment worth TK. 20 billion is expected.

6. Threats
 Day by day cost of production has been increased.
 Big multinational may come and take the major market
due to their economies of scale, superior quality and
product patent.
 Cheap and substandard drugs especially from neighboring
countries may enter the market illegally and destabilize
the market.

7.  Migrating from a product centric
strategy to customer centric strategy
 New medical legislation is re-shaping
the healthcare space
 Customer feedback can reside in
everything from online communities,
to internal CRM systems, to doctor
patient interactions
 The industry is fragmented because
ten biggest pharmaceutical
manufacturers cover only
approximately 35 percent of the
entire market volume

8. Integrated Services
Clinical integration: Doctors interact Doctors interact with
other doctors, laboratories, pharmacies and insurance
companies to exchange information
Administrative integration: Hospitals and doctors interact
with manufacturers of medical devices, pharmaceutical
companies for administrative information
Financial integration: Insurance companies communicate
with doctors, hospitals and pharmacies for accounting
purposes

10. Two-tire
Structure
Largest firms
account for R&D
investment and
hold the majority
of patents
Fewer patents and
relies on
manufacturing
off-patent generic
medicines or
patent medicines
under license.

11. Growth Rate
2001 22.46%
2002 10.18%
2003 5.90%
2004 8.60%
2005 17.50%
2006 4.08%
2007 15.80%
2008 6.91%
2009 16.80%
The rapidly growing industry is consist of
approximate 250 companies which contributes
almost 1% of the GDP and is currently the third
largest tax paying sector in the country

12. External
Forces
WTO’s TRIPS
(Trade Related
Aspects of
Intellectual
Property)
Rapidly
changing
international
marketplace

13. Seria
l
Name of Pharma Tk (Corer) Share Growth (%)
Rank Total market 7,186 100.00 24.30
1. Square 1,378 19.18 23.54
2. Incepta Pharma 650 9.05 32.17
3. Beximco 620 8.62 40.33
4. Opsonin Pharma 355 4.94 26.09
5. Eskayef 348 4.84 24.82
6. Renata 340 4.73 29.63
7. Acme 319 4.44 17.34
8. A.C.I. 293 4.08 18.81
9. Aristopharma 286 3.99 21.63
10. Drug
International
270 3.75 18.18
11. Others 2,103 32.38 -

14. Five forces

15. Similar product
173 company
Similar price
Lucrative profitability
High Fixed cost
RIVALRY AMONG EXISTING COMPETITORS

16. Threats of New Entrants
Saturated
market
Competition
with big
company
Lack of
endorsement
High
Investment
Low
switching
cost

17. Threats
Substitute
Pharmacy
Physician
Regulation
Media
Local
Supplier
Cumulative Forces

18. Findings
one of the fastest growing
sectors.
mainly dominated by domestic
manufacturers.
operates in a smaller internal
market.
Export opportunity is huge
Cost of production is increasing
because of foreign imported
raw materials

19. Continue…
focusing on business to business marketing.
Costs of marketing hardly affect the price of the medicine.
Effect of globalization is increasing the competition.
price effective & affordable
Professionalism in marketing is not achieved yet

20. Recommendation
Funding of research should be increased.
Price policy should ensure ability to buy the drugs
at a reasonable price
Pharmaceutical policy may also attempt to shape
and inform prescribing.
Advertising cost should be reduced
Gets more emphasis on the product packaging and
leveling

21. Continue…
Should frequently
introduce new
product to the
market
Build up more
business relation
with the doctors and
chemists by
providing samples.
should produce
quality product by
using the updated
equipment and raw
material.
should produce their
product in a hygienic
environment
Distribution division
should be enlarge
through the local
areas