COURSE NAME: BUS 307 (3)

Fabiea Jahan (192011054)

Pharmaceuticals Industry in Bangladesh

Answer to Question 1

Forces Key Players Features Remark

Suppliers Chemical industry Currently, 99.5% of the raw materials used Strong
in the pharmaceutical sector in Bangladesh
are imported, mostly from China and India.
API can also be purchased from European
vendors in Bangladesh. However,
purchasing API from a European nation
increased costs. High switching costs and
supplier concentration provide the supplier
with strong bargaining leverage. However,
the commercial operation of API Park in
Munshiganj will undoubtedly reduce
reliance on raw material imports. As a
result, it is predicted that supplier
negotiating power would decline in the
future.

Buyers Pharmacies, Doctors, The buyers of the pharma industry might Weak
Physicians be physicians, doctors and pharmacies but
the final consumers are patients. Even
though there are around 257 licensed
pharmaceuticals, medicines are considered
necessary. Hence, even though there is
 much market competition, the price does
not really fall. The quality will increase but
the price will remain the same.

Competitors Johnson & Johnson, Even though 98% of the demand can to Strong
Roche Holding, fulfilled by medicines manufactured in
Pfizer, Novo Nordisk Bangladesh, a crucial 2%*(medicines for
and Eli Lilly, Square, cancer, hormones and vaccine) has to be
Beximco etc imported. For example, vaccines for
COVID-19 were brought to the market by
these companies. Similarly, the market for
drugs is very consolidated. The majority of
the market is dominated by the top 20
competitors. Identical medication is sold by
every manufacturer under various brands.
To gain market share, the businesses are in
strong competition with one another.

Substitutes Counterfeit drugs Medicines do not really have any Weak

substitutes. The only substitute can be
counterfeit drugs sold on the black market
without a license. There may not be many
of these counterfeit drugs but they ruin the
reputation of authentic firms.

New Entrant The pharmaceutical sector offers Weak

significant rewards, which encourages the
creation of a regular flow of new
businesses. It is possible for a group of
researchers to locate venture capital firms
prepared to offer millions of dollars in
startup funding if they have a unique idea
 or recently approved patents. However,
usually, these new-entrant pharmas are not
threats to the existing big companies. Most
of the time, these new companies' exit idea
includes selling their companies to bigger
competitors. There is a high barrier to entry
into the medicines sector because it takes a
significant capital investment and
regulatory approval from the drug
authority. Customer loyalty to well-known
companies' medications and access to
distribution channels also act as barriers.

Answer to Question 2
According to Business Inception, Square Pharmaceutical now holds a market share of 17.73% in
Bangladesh's pharmaceutical sector, dominating the market. Followed by Incepta Pharmaceutical
Ltd. which is the second-largest pharmaceutical firm in the nation (10.21%). The Napa
manufacturer, Beximco, holds third place with 8.39 of the total market share. Opsonin holds
5.08%, ACI 4.38%, Eskayef 4.37%, Aristopharma 4.11% and ACME 3.52%.

The best cost-providing pharmaceutical company is SQUARE. Seclo is the most demanding
medicine in the market, with a market value of 3696 million and 1.86% of the market share.
Square also tops at Doctor Reach and Prescription Search. Napa with a market value of 1247
million (0.63%) and Napa Extra with a market share of 1222 and (0.61%) are the two other
dominating medicines in the market produced by Beximco. There are also other products
dominating the market like Mixtard30 which is produced by Novo Nordik with a market share of
0.74% and a market value of 1471.
Answer to Question 3
The pharmaceuticals industry, Bangladesh's next multi-billion dollar opportunity, has risen
dramatically over the past five years, with a CAGR of 15.6%. Growing GNI per capita,
population expansion, shifting illness patterns, lifestyle shifts, and quick urbanization are the
main growth factors. Export is giving the industry access to new markets, and it notably
expanded over the previous fiscal year. More than half of all medicines used globally will be
consumed by people in emerging markets. According to The Business Standard, not only is
Bangladesh one of the 47 LDC nations that have attained medical self-sufficiency, but it also
exports pharmaceuticals to other nations all over the world. The pharmaceutical industry's
market value increased to $3 billion in 2019 as it became the largest white-collar employer in the
nation. But by 2025, it's anticipated to be worth almost $6 billion. Experts in the field predict that
Bangladesh's pharmaceuticals sector would increase by 15% annually to $5.11 billion by 2023,
driven by significant investments made locally by firms looking to capture a larger portion of the
worldwide market.

Answer to Question 4
The Bangladesh Association of Pharmaceteaucial Industry has been granted to export over 1200
pharmaceutical products to over 147 countries. The demand for pharmaceuticals in pharmerging
markets has increased as a result of ageing populations, rising healthcare costs, an increase in the
number of public hospitals, and an increase in the illness burden of chronic diseases. According
to a survey from IQVIA Health, pharmaceutical markets spent the most money, in 2018, on
medicines marketing for pain, antibiotics, high blood pressure, cancer, and diabetes (Institute for
Health Informatics).

Bangladesh offers significant manufacturing cost advantages due to the lower cost of labour.
Bangladesh offers labour at a cost that is three to four times less than that of China and India.
Bangladesh now has the lowest medical costs worldwide. Bangladesh has a better chance than
China and India to export pharmaceutical products as a result. WTO’s Trade-Related Aspects of
Intellectual Property (TRIPS) allowed least-developed countries like Bangladesh to create a
generic version of a patented drug by reverse engineering the original without the innovator's
consent.

Answer to Question 5
Primary Activities
1. Repackaging Production Infrastructure
2. Human Resource Management
3. Innovative Packaging Technologies
4. Procurement of Primary Packaging Technologies

Secondary Activities
1. Primary Material Inbound Logistics
2. Operations of Repackaging Production
3. Repackaged Product Outbound Logistics
 4. Marketing & Sales
5. Services to Provider and Pharma

Reference:
1. 2022, April 15. Top 7 Pharmaceutical Companies in Bangladesh. Business Inspection.
Retrieved by: https://businessinspection.com.bd/top-pharmaceutical-companies-in-bd/
2. 2021, February, 6. The Business Standard. An emerging global player of the
pharmaceutical industries: Challenges and prospects for Bangladesh. Retrieved from:
https://www.tbsnews.net/thoughts/emerging-global-player-pharmaceutical-industries-chal
lenges-and-prospects-bangladesh-197476