Bangladesh’s pharmaceutical industry has experienced a surge in exports, with a growth of nearly 15% in the first two months of the current fiscal year. This increase can be attributed to drug-makers securing international tenders and the gradual recovery of the global economy.
In July and August of the 2023-2024 fiscal year, pharmaceutical exports from Bangladesh reached $31.64 million, according to data from the Export Promotion Bureau. This positive trend comes after a decline in exports during the previous fiscal year, where pharmaceutical exports fell by 7% to $175.42 million in 2022-2023 due to the global economic crises and a shortage of US dollars in underdeveloped countries.
Industry experts have indicated that drug manufacturers have successfully secured tenders in importing countries, taking advantage of the easing economic volatility. Additionally, buyers are placing higher orders as economies start to recover from the impacts of the global economic crises, particularly those caused by the Russia-Ukraine war.
To avoid potential disruptions stemming from the upcoming general elections, pharmaceutical manufacturers in Bangladesh have set a target to ship products by this month, fulfilling the orders placed for the year. This proactive approach safeguards against any potential political unrest that may occur during the election period.
Despite the growth in pharmaceutical exports, businesses in Bangladesh still face challenges such as a shortage of US dollars, the ongoing war, difficulties in finding new export destinations, and obstacles in opening letters of credit to import raw materials. These challenges have impacted the sector’s ability to achieve predicted export growth. It is believed that the situation will not significantly improve until the war ends.
While economies in major export destinations like Nepal, Sri Lanka, and Myanmar are gradually recovering, the pace of exports is still slower due to buyers in the US and the European Union offering lower prices than the actual value of the products. This price discrepancy has hindered the acceleration of export growth.
Renata Ltd, a leading pharmaceutical company in Bangladesh, has managed to maintain its export growth target by expanding its production units. The company achieved approximately 60% growth in the last two months by fulfilling bulk orders from a foreign country. Renata attributes its success to its international marketing team, which frequently visits abroad and puts in the work necessary for growth.
Renata’s European subsidiary, Renata Pharmaceuticals (Ireland) Limited, has obtained regulatory approval in the European Union and Germany for launching drugs to treat Parkinson’s disease. This approval opens up new opportunities for the company in the European market.
The growth in Bangladesh’s pharmaceutical exports showcases the resilience and adaptability of the industry amid challenging circumstances. Despite the obstacles faced, the industry remains committed to delivering high-quality products to meet international demand. The pharmaceutical sector in Bangladesh plays a crucial role in contributing to the country’s economy and global healthcare.
