Industry Analysis Report on Beximco

Pharmaceutical Limited
Course Title: Strategic Management
Course ID: MGT 490
Section: 7
Semester: Autumn 2023
Independent University Bangladesh
Submitted To
Dr. Imranul Hoque
Date of Submission: 10th December 2023
Group Members:
Name ID
Saad Bin Saleh 1720997
Sazzad Musa Musa 1910293
Ayesha Khanam 1930076
Ayman Murshed Oishee 1820532
Nafis Shadman 2120507
 INTRODUCTION

Despite being among thousands and thousands of companies in pharmaceuticals industry

today, Beximco Pharma maintained to be among the top 5 in the industry for many years and
hence being the first company to export in the U.S.

Beximco Pharmaceuticals Ltd also known as Beximco Pharma Ltd is an pharmaceutical

company located in Bangladesh under Bangladesh Export Import Company often known as
BEXIMCO.

Beximco Pharma was founded in 1976 and started to work under the licenses of two
multinational companies named Bayer AG of Germany and Upjohn Inc. of US in 1980. Now,
Beximco Pharma manufactures and sells their own medicines which cures diseases like cancer,
AIDs as well as diabetes and being the first pharma company from Bangladesh to export
medicines in USA.

Beximco Pharma has manufacturing factories located around areas of 81000m over Dhaka,
Bangladesh and even got facilities like OSD (Oral Solid Design) plant designed by foreign
countries like Germany, Sweden, Italy, etc. to serve the nations.

COMPANY OVERVIEW

Beximco Pharmaceuticals Ltd. is a significant pharmaceutical manufacturer and exporter in

Bangladesh. Incorporated in 1976, the company began operations by importing and selling
items from Bayer, Germany, and Upjohn, USA, in the local market. Beximco began
manufacturing these goods under a licensing agreement in 1980 and debuted its own
formulation names in 1983. From that humble beginning, Beximco Pharma has evolved from
strength to strength, and it is now a regionally expanding worldwide generic medicine
company. Beximco Pharmaceuticals manufactures and sells generic pharmaceuticals, active
pharmaceutical ingredients (APIs), and other healthcare solutions. The company manufactures
pharmaceutical products in a variety of therapeutic areas, including cardiovascular, anti-
infective, central nervous system, respiratory, gastrointestinal, and others. Beximco
Pharmaceuticals has a global presence and exports its goods to a variety of nations. It has a
foothold in several international markets, which contributes to its status as one of Bangladesh's
largest pharmaceutical exporters. Beximco Pharmaceuticals operates cutting-edge production
facilities that meet worldwide quality standards. The company's manufacturing capabilities
include a wide range of pharmaceutical forms, such as tablets, capsules, injectables, and others.
Beximco Pharmaceuticals participates in a variety of CSR programs that benefit social and
community development. CSR initiatives in the pharmaceutical sector may include healthcare
awareness campaigns, infrastructure support, and community service projects. It also has the
unique distinction of being the only Bangladeshi company listed on the AIM of the London
Stock Exchange.

INDUSTRY ANALYSIS

Industry Size and Growth Trends:

Bangladesh Association of Pharmaceuticals (BAPI) was founded in 1972 with 23 pharma

companies but today it’s the only registered and recognised Association of pharma companies
in Bangladesh. There are currently 100 Pharma companies but Incepta, Square, Beximco
Pharmaceuticals, holds the top 3 position.

With the permit of the World Trade Organization, Bangladesh is allowed to remake generic
pharma products and sell it locally and internationally and since there are restrictions for similar
drugs to be manufactured, Bangladesh is protected from any external competitors and hence
the industry being one of the most powerful in the country. Local companies are dominating
in the market for about 90 percent share while global corporation is holding only 10 percent
share. Some reasons that include growth of this industry are increased life expectancy making
people more health conscious has made people to spend more on healthcare services as their
incomes have also increased.

Over the last five years, Bangladesh's pharmaceutical business has grown at a CAGR of 15.6%
every year. Bangladesh's pharmaceutical business was worth about $2.42 billion in 2018, and
it is expected to grow to $3 billion in 2019. According to Research and Markets, the
pharmaceutical market will rise by 114% by 2025, reaching more than $6 billion. Furthermore,
Bangladesh earned 136 million in the 2019-20 fiscal year by selling medications to 147 nations
worldwide. At the moment, Bangladesh's pharmaceutical industry is attempting to acquire
approximately 10% of the global market. Beximco Pharma started in 1983 and till today it has
earned many rewards which made the company more reliable and worthy.

Maturity of the Industry:

In 1983, Beximco Pharma launched their own formulation brands and in 1993 they started
exporting to Russia.

In 2003, Beximco Pharma introduced antiretroviral drugs to treat HIV and Hepatitis B.

In 2006, the company launched CFC free HFA inhalers for the first time in Bangladesh.

In 2013, started exporting to Europe. In 2014 started exporting to Australia and in 2016
exporting to USA.

Today, Beximco Pharma holds the top 3 position in the industry.

Through research and development these industries tend to figure out the cure for the patients
and before a runs it before a new drug arrives in the market hence being the first one to produce
than the other in order to maintain the competition.

The government appointed an expert committee to develop a drug strategy in March 1982. The
group develops policies for both the formulations and API industries. However, the previous
government only permitted the issuance of the Drugs (Control) Ordinance for the formulations
sector, and two further new laws were enacted in June. The first was to prohibit the
manufacture, import, and sale of superfluous and hazardous pharmaceuticals, while the second
was to prohibit the products of multinational corporations that did not have their own
manufacturing operations in the country. According to Sudip Chaudhuri's report,
EVOLUTION OF THE PHARMACEUTICAL INDUSTRY IN BANGLADESH, Bangladesh
did not remove any of the rules, despite pressure from the US government at the time. However,
out of 4340 registered drugs at the time, around 1700 were prohibited and removed from the
market. This provided an opportunity for MNCs to reorganize their activities, although several
businesses, like Squibb, were forced to close their operations in Bangladesh. Bangladesh signed
the TRIPS agreement with the World Trade Organization in 1995. Bangladesh, as one of the
least developed countries, benefited from the ability to manufacture and commercialize
medications without the use of patents. As a result, Bangladesh can produce medications at a
cheaper cost, lowering the price of medicines at the consumer level, which is critical for a
developing health sector like Bangladesh. The agreement was initially effective until 2005, but
it was later extended until 2016.

Bangladesh is known for making high-end, branded generic drugs.

High-end includes insulins to treat diabetes. Branded Generics includes antibiotics to treat any
irritation or inflammation like Cef-3. But mainly pharmaceutical companies in Bangladesh
focuses on branded generic formulations using Active Pharmaceutical Ingredients (APIs)
produced both locally and internationally.

APIs are used to make painkillers which makes an instant effect. It is used to treat fevers or
gastrological effects instantly. For example: Napa, Ace.

External Factor:

Bangladesh's pharmaceutical industry has been significantly shaped by external economic

factors. Several significant economic factors and their impact on the industry are as follows:

 Foreign Direct Investment (FDI) Policies - The pharmaceutical industry may be

significantly impacted by the widening of FDI policies. While encouraging foreign
companies to invest in the nation can help develop the industry, it's important to balance
these policies with assistance for domestic companies.

 Market Concentration - Bangladesh's industry is extremely concentrated, with the top

20 companies holding roughly 85% of the market. Notably, local businesses hold a
greater than 90% market share, dominating the industry. Within the industry, this
concentration may have an impact on pricing, market dynamics, and competition.

 API Sector Development - One important economic factor has been the
underdevelopment of the Active Pharmaceutical Ingredient (API) industry. The
 formulation industry grew quickly, but the API industry was neglected, which
presented difficulties given the TRIPS product patent regime.

 Technology Transfer and Technological Advancement - The industry's development

has been impacted by technology transfer and the production of high-tech goods. The
removal of product patent protection gave local businesses the chance to start producing
more intricately formulated goods.

 Import Dependence and Foreign Exchange Savings -The industry has benefited
economically from the decrease in reliance on drug formulation imports and the
resulting savings in foreign exchange. This has helped Bangladesh change from a nation
that imports drugs to one that exports them.

Technological Factors:

Bangladesh's pharmaceutical business is a complicated and dynamic field that is continually

evolving to satisfy the needs of the country's patients. Technology has played an increasingly
crucial role in this industry in recent years, revolutionizing how pharmaceuticals are found,
manufactured, and delivered to patients. Pharmaceuticals has seen tremendous transformations
in recent years, with the emergence of new technologies playing a critical role in molding its
future. The industry has recognized the expanding need for technology in medication
discovery, development, and delivery as patient and healthcare provider demands continue to
advance. As the pharmaceutical industry evolves, new technologies emerge that are altering
the way pharmaceuticals are researched, tested, and brought to market. Some of the important
technological elements influencing Bangladesh's pharmaceutical business include:

Biotechnology: Biotechnology plays a very vital role in the pharmaceutical research and
development sector. In today’s time, 15% of the bounce is elicited from the biopharmaceutical
industry. Biotechnology is the science that merges with technology that is being used in the
pharmaceutical industry, and it is proven to be advantageous, specifically in the manufacturing
of genetic testing and vaccinations. Pharmaceutical biotechnology is a relatively new and
expanding subject in which biotechnology principles are applied to the production of
medications. Bioformulations, such as antibodies, nucleic acid products, and vaccinations,
account for the vast bulk of therapeutic pharmaceuticals on the market today. Biotechnology
offers a wide range of applications in medicine. The following are some biotechnology uses in
medicine:
  Gene Therapy: The most potential solution to the problem of hereditary illnesses is gene
therapy. Gene therapy is used to cure genetic problems by inserting a normal gene or
the proper gene for a damaged or dormant gene into a human using vectors such as
retrovirus, adenovirus, and herpes simplex virus. The normal gene takes up the
functions of the faulty or inactive gene. When presented in the early stages of life, the
therapy has the best possibility of creating a permanent cure.
 Molecular Diagnosis: Medical diagnosis is another application of biotechnology in the
health sector. Many times, the pathogen concentration increases by the time the disease
is diagnosed. Hence, early diagnosis and knowledge of pathophysiology are essential
for an effective cure. Molecular diagnostics, also known as molecular pathology,
involves evaluating the sequences of DNA or RNA, the unique genetic code contained
in our cells, for red flags that can indicate the possible onset of a specific disease. In
recent years, the field has grown quickly.

Digitalization and Data Analytics: In recent years, the pharmaceutical sector has seen
substantial changes, with supply chain interruptions, natural catastrophes, pandemics, and other
issues requiring corporations to reconsider their plans. As the world observed the incredible
rapidity with which the COVID-19 vaccine was developed, it became clear that the industry
would never be the same again. Companies are looking to digital transformation in pharma to
efficiently manage suppliers and contract partners while improving time to market reliably,
safely, and profitably. This transformation entails more than just automating procedures; it
entails adopting a holistic approach that optimizes outcomes across the pharma value network.
Pharma businesses can obtain significant new capabilities and the agility required to produce
medicines with more efficiency and efficacy in all market situations by digitally linking their
end-to-end operations. A vision for the future of pharma includes a completely connected
environment in which data created at every place can be accessible, combined into larger
datasets, and used to increase operational efficiency. Using industrial AI and linked software
applications, this level of connectivity enables more effective analysis, monitoring, and
optimization. As a result, pharmaceutical businesses can improve results at every stage of
production, resulting in a higher impact than the sum of its parts.

Robotics and Automation: The recent worldwide epidemic has only highlighted the necessity
for automation, with pharmaceutical robots playing an important part in vaccine creation,
testing, and dispensing. The use of robotics in pharmaceutical automation will only grow in the
coming years, particularly as current technologies improve. Some of the important roles
performed by robots in the pharmaceutical industry include:

 Analysis and Testing: Pharmaceutical robots are frequently employed in the

development and testing of novel pharmaceuticals and therapies. When huge volumes
or combinations of diverse substances must be accurately analyzed in laboratories or
on production lines, or when products must be evaluated for uniformity or safety, robots
can assist. When pharmaceutical companies are in the early stages of medication
discovery, robots can also assist with critical tasks such as gene analysis.
 Dispensing: Pharmaceutical robots play an important part in the dispensing of
medications, treatments, and vaccinations. Robots can autonomously dispense the
proper amounts of compounds or materials required to synthesize key medications, as
well as rapidly measure out the requisite doses into vials or syringes.
 Sorting: During the production process, robots are used to sort large numbers of
pharmaceutical materials and products. Pharmaceutical robots can be seen dispensing
or mixing substances, while picking robots can sort various vials or products that are
ready for packing.
 Packing: Robots are often used throughout the pharmaceutical manufacturing process,
including the final packing phases. Pharmaceutical robots are frequently employed to
pick and pack medications in preparation for storage or transportation. They can also
be used to palletize vast amounts of items for mass distribution.

Telemedicine and E-Health: Regular hospital visits can be expensive, particularly in rural
areas, due to travel costs. In the era of the Covid-19 pandemic, where physical interaction
becomes risky, people prefer telemedicine. Fortunately, medical visits can be reduced when
telemedicine services are used through video conferencing or other virtual technologies.

Individuals can improve healthcare delivery and make it available to an increasing number of
people thanks to advanced technologies and high-quality network services. Telemedicine is a
more helpful technology that can assist people get preventive care and improve their long-term
health. This is especially true for those who confront financial or geographical barriers to
accessing adequate care. Telehealth offers the ability to improve the effectiveness,
organization, and accessibility of health care. This research is still in its early phases, but it is
growing. Telephone-based treatment and telemonitoring of vital signs, for example, reduced
the risk of mortality and hospitalization while improving quality of life in people with heart
disease. Telemedicine provides considerable promise for patients in outlying places. The
greatest impact is felt in a variety of countries where healthcare services are both sparse and
inaccessible. People can use this technology to take blood pressure medication, refill
medications, and remember appointments. Patients can also contact doctors to describe their
symptoms, perform a series of self-tests, and enroll in step-by-step training services suited to
their unique ailment. Electronic health technology simplifies chronic illness management in all
settings by simply putting care monitoring applications and cellphones in the hands of patients.

Regulatory Compliance Software: Different countries have their own set of compliance laws.
The challenges of varied regulatory standards must be solved in order to conduct remedial and
preventive actions and manage adverse events, audits, and overall product quality.
Pharmaceutical compliance software also secures data integrity and connection while ensuring
that organizations' products meet regulatory criteria. Pharmaceutical compliance software is
used.

Seasonality of the industry:

Seasonality may exist in the pharmaceutical sector in Bangladesh, as it does in many other
industries. Seasonality is a straightforward idea in biotech or pharma, as there are seasons of
the year when specific treatments are in more demand. For example, when temperatures begin
to fall in the western hemisphere, the need for anti-flu medication often rises. Furthermore, the
demand for hay fever treatment often increases around April or May. Seasonal variations in
temperature, rainfall, and resource availability are ubiquitous and can exert strong pressure on
population dynamics.

Disease Patterns: Certain diseases may be more prevalent during specific seasons. Changes in
the earth’s climate and in the global environment more generally have enormous significance
for the population. Changes in pharmaceutical use in the country as a result of climate change,
as well as the increased presence of pharmaceuticals in the environment, may have unwanted
and unexpected consequences for the structure and functioning of ecosystems. As a result, there
is an increase in demand for related pharmaceutical products such as Dextrim cough syrup or
Dynase.

Vaccination Campaigns: Vaccination programs for diseases such as influenza are frequently
intentionally scheduled to coincide with the virus's regular seasonal trends. Influenza,
sometimes known as the flu, follows a seasonal pattern, with peak activity happening during
the colder months, typically from late fall to early spring. As previously noted, factors such as
indoor congestion, low humidity, and the stability of the influenza virus in cold settings
contribute to this seasonality. Vaccines are often administered to large populations, especially
in the case of widespread diseases or during public health campaigns. The sheer volume of
doses required can contribute to revenue for vaccine manufacturers. Collaborations with
governments, international organizations, and non-profit organizations are common in the
manufacturing of vaccines. Public-private partnerships can provide financial support, provide
a consistent market, and occasionally guarantee purchases, all of which contribute to vaccine
campaign profitability.

Health awareness campaign: Although health awareness campaigns might indirectly

contribute to pharmaceutical company revenue, their major goal is often to educate the public,
increase awareness about health issues, and encourage illness prevention. While the direct
financial rewards from health awareness programs may not be as quick or quantifiable as those
from medicine sales, they are nevertheless significant. By portraying pharmaceutical
companies as socially responsible enterprises, health awareness campaigns can improve their
brand reputation. Building customer trust and a positive image might impact purchasing
decisions when individuals seek medicinal products. Also, pharmaceutical businesses can raise
the visibility of their medicines and therapeutic areas by participating in or supporting health
awareness initiatives. This greater awareness may lead to a rise in demand for relevant
pharmaceuticals as people seek healthcare remedies.

Government Procurement and Subsidies: Government procurement and subsidies have a

considerable impact on both manufacturers and consumers in the pharmaceutical business.
These policies are frequently put in place to assure the availability, cost, and accessibility of
critical pharmaceuticals. Government procurement agreements can provide pharmaceutical
businesses with consistent and predictable revenue streams, especially when governments
commit to purchasing significant quantities of drugs. This can be especially useful for
companies that manufacture crucial pharmaceuticals. In addition, winning government
procurement contracts can provide major market access for pharmaceutical companies. This is
particularly true when governments are the principal buyers of healthcare supplies for public
hospitals, clinics, and national health programs, and negotiating with governments also allows
pharmaceutical companies to showcase the value of their products and services. This
negotiation power can lead to more favorable pricing terms, longer-term contracts, and other
beneficial conditions.
 Regulations:

The pharmaceutical industry in Bangladesh has been significantly shaped by political,

regulatory, and legal considerations. Among the main issues are the following:

Regulatory Framework - Over time, there have been substantial modifications to Bangladesh's
pharmaceutical industry's regulatory framework. The Drugs (Control) Ordinance of 1982,
which was later passed into law, gave local businesses a market for basic generic formulations
and sparked the industry's explosive growth. To ensure quality control and safety standards,
the regulatory framework has been criticized for being inadequate and ineffective.

Political Instability - Political instability has been a significant concern for the industry, with
frequent changes in government policies and regulations. This instability has led to uncertainty
and unpredictability in the industry, affecting investment decisions and growth prospects

Intellectual Property Rights (IPR)- Since product patent protection was eliminated in 2008,
local businesses have been able to offer patented goods at reduced costs, which has aided in
the expansion of the sector. But the absence of IPR protection has also sparked worries about
the sector's capacity for innovation and worldwide competitiveness.

Counterfeit Drugs - The industry's credibility and reputation have been negatively impacted by
the widespread availability of fake medications. To combat counterfeit drugs, the government
has established a separate department as part of its efforts to address this issue.

Export Regulations - To guarantee a sufficient domestic supply, the government has

implemented export restrictions on pharmaceutical products. But these rules have also made it
harder for the sector to compete internationally and export goods.

Competitiveness:

The dynamics of the pharmaceutical industry in Bangladesh have been impacted by notable
changes in the competitive environment. The following are some salient features of the
competitive landscape and the noted shifts:

Market Concentration - The top 20 companies in the sector control nearly 85% of the market,
indicating the industry's extreme concentration. Notably, local businesses hold a greater than
90% market share, dominating the industry. The industry's competition, pricing, and market
dynamics have all been impacted by this concentration.
Shift towards API Manufacturing- Bangladesh started out concentrating on the production of
formulations and only gradually began to expand into the production of active pharmaceutical
ingredients (APIs). The competitive landscape has changed significantly as a result of this shift,
which also affects Bangladesh's ability to function internationally as an LDC that supplies the
world with patented medications.

Rise of Local Firms - One significant shift in the competitive environment has been the
emergence of local companies in the pharmaceutical sector. The expansion of the industry has
been largely fueled by local businesses, especially in light of the elimination of product patent
protection and the entry of patented goods at reduced costs.

Technology Transfer and Innovation - Local businesses now have the chance to produce more
intricately formulated goods thanks to the elimination of product patent protection. The
competitive landscape has changed as a result, with local businesses being able to challenge
the dominance of foreign companies by introducing patented products at lower prices.

Export Competitiveness - The shift in Bangladesh from a drug-importing to a drug-exporting

nation has affected the industry's export competitiveness. Bangladesh is now a prominent
player in the global pharmaceutical market as a result of this change in the industry's
competitive dynamics.

KEY CHALLENGES OF PHARMACEUTICAL INDUSTRY

The pharmaceutical industry is a vital sector that plays a significant role in the healthcare
system of any country. Bangladesh's pharmaceutical industry has grown remarkably in the past
40 years, placing a strong emphasis on high-quality production, affordable medication, and the
integration of innovation and technology in the near future. However, the industry still faces
some challenges that need to be addressed to ensure its continued growth and success.

Some businesses are still suffering the effects of the global pandemic as the Covid-19 issue in
China continuously making frequent appearances in mainstream news and posing an increasing
threat to disrupt supply chains. As companies strive to ensure that 2023 marks a positive step
forward post-pandemic, let's examine some of the significant challenges that the
pharmaceutical industry will encounter in the coming year.
1. Import Dependency on Active Pharmaceutical Ingredients (APIs):

One of the key challenges facing the pharmaceutical industry in Bangladesh is the country's
reliance on imports for active pharmaceutical ingredients (APIs). To fix this, the industry
should start making these ingredients within the country instead of depending too much on
imports. A report from Boston University also talks about this issue. It says that important
medicines for treating tuberculosis are not made in Bangladesh, and the country has to rely on
importing complicated products.

2. Shortage of Skilled Personnel:

Another problem is the shortage of qualified personnel, and it's a big issue in the
pharmaceutical industry. Skilled people are needed to run and take care of the advanced
equipment used in making medicines. If there aren't enough skilled workers, the quality of the
products might drop, and that could harm the industry's reputation.

3. Insufficient Investment in Research and Development:

The pharmaceutical industry in Bangladesh faces another obstacle, as there are not spending
enough money on research. The industry should put more money into studying and creating
new medicines or making the ones we already have better. This investment will make sure the
industry stays strong, can compete with others, and can keep up with the changing needs of
healthcare.

4. Adapting to Global Trade and Investment Rules Post-LDC Status:

In Bangladesh, the pharmaceutical industry has to follow worldwide trade and investment rules
after no longer being a Least Developed Country (LDC) in 2026. A report from New Age says
that Bangladesh mostly makes generic drugs that are not protected by patents. Because of this,
the rules for how these drugs are regulated might change. The report also says it's important to
build a strong pharmaceutical sector that can make important ingredients (API) and biologics,
not just small molecules. Doing this is very important and requires help from experts in the
country and from around the world, as well as a lot of money.

5. Technological Challenges in Clinical Trials Post-Pandemic:

The pandemic really messed up things for pharmaceutical companies doing trials, not just for
COVID-19 vaccines. Even though the main problems from the pandemic are getting better, we
still feel the effects in 2023. Now, these companies are trying to use new technologies like AI
and virtual platforms to start or redo trials with less in-person meetings. But using this new
tech is expensive and can cut down or completely remove the money they make.

6. Cybersecurity Threats in the Pharmaceutical Sector:

Since customer's information is getting more and more important, there are more cyberattacks
happening. Pharmaceutical companies, in particular, are at risk of these cyber threats. To stay
safe, these companies have to spend more money on cybersecurity. They also need to make
better rules about cybersecurity for people working in the office and those working from home.
If they don't, there's a chance they could have a big and expensive problem with their data
getting into the wrong hands.

7. Combating Pharmaceutical Fraud:

Tricking people in the pharmaceutical industry is still a big problem, and it might have been
even worse during COVID-19. To stop this, companies need to do things to avoid fraud. They
should also talk inside the company about things that might be tricks, so they can stop
healthcare fraud problems before they happen.

8. Regulatory Compliance and Quality Assurance

Ensuring compliance with evolving regulatory standards is a critical concern for the
pharmaceutical industry in Bangladesh. As the industry matures, adhering to international
quality assurance benchmarks becomes imperative to uphold product safety and efficacy.
Establishing stringent quality control measures, conducting regular audits, and investing in
state-of-the-art quality assurance technologies will be pivotal in meeting global regulatory
expectations and bolstering the industry's reputation.

9. Sustainable Practices and Environmental Impact:

The pharmaceutical industry in Bangladesh faces the challenge of incorporating sustainable

practices and mitigating its environmental impact. From raw material sourcing to waste
disposal, adopting eco-friendly processes can contribute to both environmental conservation
and long-term operational efficiency. Implementing green manufacturing technologies,
reducing carbon footprints, and fostering partnerships with eco-conscious suppliers are
essential steps for the industry to address environmental concerns and align with global
sustainability goals.
10. Access to Affordable Healthcare:

Ensuring widespread access to affordable healthcare remains a paramount challenge for the
pharmaceutical industry in Bangladesh. While the industry strives for innovation and high-
quality production, addressing the affordability of medications is crucial for meeting the
healthcare needs of the population. Collaborating with healthcare providers, government
agencies, and international organizations to develop pricing strategies that balance profitability
with accessibility is essential. Moreover, exploring initiatives such as generic drug promotion
and public-private partnerships can contribute to making essential medications more affordable
and accessible to a broader segment of the population.

11. Ethical Marketing and Patient Education:

Promoting ethical marketing practices and enhancing patient education is a growing concern
for the pharmaceutical industry in Bangladesh. Ensuring that marketing efforts are transparent,
accurate, and prioritize patient well-being is essential for building trust and credibility.
Additionally, investing in comprehensive patient education programs can empower individuals
to make informed healthcare decisions, fostering a healthier and more engaged community.
Striking a balance between commercial interests and ethical considerations will be crucial to
maintaining the industry's integrity and fostering positive relationships with healthcare
consumers.

In short, while Bangladesh's pharmaceutical industry has made great strides in quality and
affordability, it faces some tough challenges. These include reducing reliance on imported
ingredients, dealing with a shortage of skilled workers, and boosting investment in research.
Adapting to global trade rules, overcoming tech issues in trials, and strengthening cybersecurity
are also crucial. Additionally, ensuring access to affordable healthcare and promoting ethical
practices are key priorities. By tackling these challenges with innovation and a commitment to
ethical standards, the industry can continue to grow and positively impact healthcare in
Bangladesh.
 BEXIMCO’S STEPS TO MEET THREE KEY CHALLENGES

Beximco Pharmaceuticals Ltd., a prominent drug player in the Bangladeshi pharmaceuticals

industry has strategically addressed several challenges prevalent in the sector. Focusing on
three key challenges such as: Import Dependency on Active Pharmaceutical Ingredients,
Shortage of skilled personnel and Combating Pharmaceutical Fraud, this analysis explores the
company’s steps to overcome these obstacles.

Challenge 1: Import dependency on Active Pharmaceutical Ingredients (APIs)

Beximco Pharmaceuticals Ltd, a well-known company in Bangladesh mainly depends on

imported active pharmaceutical ingredient (APIs) to make its medications. Certain
dependencies and potential vulnerabilities arise from this reliance.

Solutions:

 One way to tackle this challenge is by investing in API production facilities. And
Beximco company has invested heavily in API manufacturing facilities in Bangladesh.
This step helps to reduce the dependence on imported APIs and make this company
more resilient against disruptions in supply chain. Investing in API facilities can be
lucrative due to the growing pharmaceutical industry’s demand. Consider market
trends, regulatory requirements , and partnerships for a well informed decision.

 Using a backward integration approach, Beximco company has been acquiring and
merging API producing companies. This lessens reliance on outside vendors and gives
API supply chain more control. The backward integration can offer several benefits
like increased control over the supply chain , cost savings, improved efficiency and a
more secure supply of critical inputs. This strategic approach can enhance overall
operational resilience and flexibility.

 By establishing partnerships with companies to facilitate technology transfer. By doing

this company gains access to the API production technologies and expertise further
enhancing its capabilities. This can accelerate innovation , access to new markets , cost
sharing on research and development and the opportunity to leverage complementary
expertise. Collaborative efforts can enhance the company’s capabilities by integrating
 externak knowledge , fostering a faster adoption of new technologies and reducing
development costs. It can also lead to improved competitiveness in the marketplace.

Moreover, providing incentives for companies to invest in API production which is beneficial.

Challenge 2: Shortage of skilled personnel

Attracting and keeping qualified workers is a challenge for the pharmaceutical sector which
includes Beximco as well. The operations and expansion of the company is severely impacted
by this shortage.

Solutions:

 To overcome this challenge, Beximco company offers salaries and attractive benefits
to attract skilled workers. By doing that the company also positions itself as an option
for potential employees seeking fulfilling career opportunities.

 Beximco Pharma Training Academy (BPTA) offers extensive training courses in range
of pharmaceutical fields such as pharmaceutical disciplines, including production and
quality control and regulatory affairs to both recent graduates and seasonal
professionals

 Beximco encourages students pursuing higher education in relevant field by providing

scholarships and sponsorships.

Challenge 3: Combating Pharmaceutical Fraud

Any allegation of fraudulent activity damages the company’s reputation and this is no
exception for a well-known company like Beximco. The company combats fraud by employing
a multi-pronged approach.

Solutions:

 Beximco work closely with regulatory bodies like BAPI and DGDA to strengthen their
regulations and implement effective anti-fraud measures ensuring that the entire
industry operates with integrity.
  By investing in cutting-edge serialization and track and trace system which allows the
company to track and verify the authenticity of their medicines effectively preventing
counterfeiting.

 Beximco provides training programs to employees on moral behavior and legal

obligations.

 Strict anti-bribery and anti-corruption rules have been implemented by Beximco in an

effort to discourage fraud and promote a culture of moral behavior.

 Through consumer awareness campaigns Beximco educate the public about the risks
of counterfeit drugs empowering them to make informed choices for their well-being.

By taking these steps the company mainly addresses the three key challenges facing the
pharmaceutical industry in Bangladesh and ensure its continued growth and success.

CONCLUSION

Beximco Pharmaceuticals Ltd. has strategically navigated significant challenges within the
pharmaceutical industry in Bangladesh. Addressing the import dependency on Active
Pharmaceutical Ingredients (APIs), the company has undertaken substantial investments in API
manufacturing facilities domestically. This forward-thinking approach not only mitigates
reliance on external sources but also strengthens the company's resilience by ensuring a more
secure supply chain.

Recognizing the shortage of skilled personnel as a critical issue, Beximco has implemented
multifaceted solutions. The company's commitment to attracting and retaining qualified
professionals is evident in its offering of competitive salaries and attractive benefits. Moreover,
the establishment of the Beximco Pharma Training Academy reflects a proactive stance in
nurturing talent within the organization. By providing extensive training courses and
supporting students through scholarships, Beximco contributes to the development of a skilled
workforce in the pharmaceutical sector. It has demonstrated a comprehensive and vigilant
approach. Collaboration with regulatory bodies such as BAPI and DGDA underscores the
company's commitment to maintaining the highest ethical standards. The implementation of
cutting-edge serialization and track-and-trace systems adds an additional layer of security,
allowing Beximco to track and verify the authenticity of its medicines, thereby preventing
counterfeiting.

Furthermore, Beximco's proactive stance extends to internal measures, including strict anti-
bribery and anti-corruption rules and employee training programs on moral behavior and legal
obligations. The company's dedication to consumer awareness campaigns contributes to a
broader societal understanding of the risks associated with counterfeit drugs, empowering the
public to make informed healthcare choices.

Beximco Pharmaceuticals Ltd.'s strategic initiatives showcase a holistic and forward-looking

approach to industry challenges. By addressing import dependency, talent shortages, and fraud
through innovative and comprehensive strategies, Beximco positions itself as a key player in
Bangladesh's pharmaceutical landscape, poised for sustained growth and success.

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