|
Across Kenya, Pakistan and Myanmar, the same story is repeated. Lives are saved, ailments cured by many of Beximco’s products. Beximco now extends its reach to some 31 countries and is planning to enter about another 30 by end of 2009.
By global standards, the Bangladeshi pharmaceutical industry is small. Yet this same industry has spawned world-class pharmaceutical companies and exports drugs to around 72 countries of the world including many OIC (Organization of islamic Conference) member countries.
OIC member countries Afghanistan, Djibouti, Indonesia, Iran, Jordan, Lebanon, Malaysia, Pakistan, Somalia, Sudan, Syria, UAE, Yemen are served by Beximco. Highly regulated markets such as the UK, Germany, Austria, Belgium, Brazil, Canada, South Africa, and France have also been penetrated.
An emerging globally competitive industry
According to a June 2009 Business Monitor International (BMI) report, Bangladesh had a domestic pharma market worth BDT 59,330.7 million in 2008(US$ 858 million, Islamic Dinars 550.6 million - a unit of the Islamic Development Bank.) Most significantly, the growth rate and investment environment has been deemed highly attractive.
Bangladesh's largest Pharma Companies (by slaes '08) |
|
Top 10 |
Sales in $ Mn |
Square |
$138.7 |
Incepta |
$ 52.1 |
Beximco |
$ 49.0 |
Acme |
$ 36.3 |
Eskayef |
$ 32.1 |
ACI |
$ 31.3 |
Opsonin |
$ 29.7 |
Renata |
$ 29.1 |
Aristopharma |
$ 28.8 |
Drug International |
$ 23.4 |
Source: IMS Health |
|
The size of the market maybe small by global standards but numerous factors mask the true size and potential for growth of the domestic pharma industry.
- Volatility in exchange rates against foreign currencies render valuation of domestic market size expressed in those foreign currencies meaningless.
- The general population in Bangladesh often seek relief from ailments through traditional herbal medicines especially when allopathic treatments are comparatively expensive or out of reach.
- Some estimates put the size of the domestic traditional medicines market at a quarter of the allopathic pharmaceuticals market which means the size of the actual medicinal market could be worth Islamic Dinars 705.9 million (US$1.1 billion).
- Exchange rates which are determined by the trade of only a select few goods and services fail to capture the real ‘value’ provided to consumers and suppliers alike when used to evaluate the size of a domestic market. Purchasing Power Parity figures attempt to address this imbalance.
Even so, it’s estimated that with a CAGR of over 18%, the Bangladeshi domestic allopathic pharmaceuticals market will be worth over ID1.21b (US$1.88b) by 2013. Over 95% of Bangladesh's own pharmaceutical needs are met by domestic firms, which number around 230.
Exceptions to meeting domestic demand are in highly-capital intensive drugs like insulin or anti-cancer drugs. But Bangladesh manufactures Active Pharmaceutical Ingredients (API) and has made forays into the manufacture of anti-cancer drugs recently.
Bangladeshi pharmaceutical exports are relatively small at around US$40m but with impressive CAGR of greater than 43% (exports double every two years at this rate) and approvals from the most well regulated healthcare markets’ authorities already gained or in the pipeline, the export of pharmaceuticals is set for a boom in the near future, say industry analysts.
Bangladesh is now exporting a wide range of pharmaceutical products covering all major therapeutic classes and dosage forms like tablets, capsules and syrups.
Bangladesh is also exporting high-tech specialized products like HFA inhalers, suppositories, hormones, steroids, oncology and immunosuppressant products, nasal sprays, injectibles and IV infusions.
Some of the most stringent regulatory authorities in the world have approved Bangladeshi pharma companies for export. The GCC’s Gulf Central Committee for Drug Registration, Therapeutic Goods Administration of Australia, UK’s MHRA, USA’s FDA, Brazil’s ANVISA, Chile’s ISPCH and Austria’s EMEA have issued GMP clearance to many local companies.
Beximco boasts world-class facilities
With overseas offices and associates in 20 countries around the world, Beximco Pharmaceuticals is one of the largest pharmaceutical companies in Bangladesh.
Beximco Group – Beximco standing for Bangladesh Export Import Company –is the largest listed company on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) by market value.
Image source: Beximco Pharma
|
Key Facts about Beximco Pharma:
Established in: 1976
Headquartered in: Dhaka, Bangladesh
Listed on: Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and AIM of the London Stock Exchange (LSE)
Turnover: ID 153.9 m, US$239.1 m (2007) for parent company
Market cap: ID 727.7m, US$ 1.13 b for parent company
Export valuation: ID 2.79m, US$ 4.35m in 2007
Export destinations: 31 (another 28 or so planned)
Notable GMP clearances: GCC, Australia (approved), UK (pending)
Staff: 2,300 |
Left: Beximco’s products being dispensed in Kenya, Pakistan and Myanmar
|
Its subsidiary, Beximco Pharmaceuticals, is listed not only on the DSE and CSE but the AIM of the London Stock Exchange (LSE). The Group’s market value is over BDT 78 billion (ID 727.7 million, US$1.13 billion). Turnover for the group was BDT 16.5 billion ( ID 153.4 million, US$ 239.1 million) in 2007.
Based in Dhaka, Bangladesh, Beximco is distinct because of its outstanding product quality, world-class manufacturing facilities, product development capabilities and excellent service. It markets and produces branded generics for diseases ranging from AIDS to cancer, infection to asthma and hypertension to diabetes for both domestic and international markets.
Founded in 1976, it has come a long way since it started manufacturing medicines in 1980 for the domestic market. It set its sights farther beyond, across all continents and all over the world.
It also manufactures active pharmaceutical ingredients and intravenous fluids and contract manufactures for major international brands of leading multinational companies.
The Metered Dose Inhaler (MDI) manufacturing plant of Beximco Pharma is one of the finest facilities in the world to produce Ozone benign HFA based MDI products. Set up in collaboration with Swiss company Pamasol, this facility allows Beximco to be one of only 14 companies worldwide to market CFC-free HFA based Metered Dose Inhaler.
Such fine facilities are being recognized internationally. Beximco’s products have already been approved for exports to Gulf Cooperation Council and Australia. Beximco is eyeing another 30 markets on top of the 31 countries it already has presence in. These include developed countries too and as Beximco’s newly commissioned U.S.A. Food and Drugs Administration standard Oral Solid Dosage plant goes into full flow, it is hoping to capture ‘a bigger slice of the global “pharma” pie.’
Research & Development: key to global competence
Switzerland’s Ciba Specialty Chemicals has a proprietary research collaboration agreement with Beximco. In formulation, the company focuses on developing new formulations - “predominantly through reverse engineering techniques”- on simplifying manufacturing processes and improving cost efficiency. Its ability to comply with strict WHO guidelines on the manufacture of anti-retroviral drugs distinguishes it from its competitors.
<pic>
In 2008 alone, it registered 45 new products and entered 7 new markets.
The R&D team has successfully formulated different high-tech formulations like multi-layer tablets, long acting formulations and dispersible tablets and introduced anti-retroviral drugs and anti-cancer drugs in Bangladesh.
Its long experience in MDI formulations helped it successfully develop a range of CFC-free HFA MDIs.
Qualified scientists with background in pharmaceutical sciences and related fields and a strong network with global companies and the scientific community within the same fields of specilization are the hallmarks of its R&D team.
Staying ahead of the game
While its exports were BDT 300 million (ID 2.79 million , US$ 4.35 million) in 2008, according to company officials2 , it is expecting a massive boost in its exports in 2009 to the tune of BDT 5 billion (ID 47.18 million, US$ 73.53 million).
Square, Incepta, Acme, Eskayef, ACI and other major players in the domestic industry are not far behind in the export scene.
The domestic market leader, Square Pharma, already exports to some 30 countries and exploring another 18 to boost its exports.
Incepta while exporting to 19 countries has already achieved UK’s MHRA approval and Austria’s EMEA’s GMP clearance just like Square.
Beximco’s offering of 234 products of various dosage strengths are well matched or exceeded by its domestic competitors Square with a few hundred products in about 550 dosage strengths, Incepta with 257 product offerings, ACI with 387 product offerings, Eskayef with 157, Opsonin with 221 and Acme with 218, among others.
What does Nazmul Hassan, CEO of Beximco Pharma, think about its future? In an interview with local business paper The Financial Express, he highlighted, “We have already launched a massive drive to increase export earnings by over one thousand per cent in 2009 riding on enormous growth in export orders and utilisation of our newly installed, fully automated and most modern factory.”
As there was a shortage of funding in the last few years, Mr Hassan thinks Beximco couldn’t realize its full export potential; it even had more than BDT 2 billion worth of export orders In the pipeline in 2008 which couldn’t be realized due to the shortage.
Beximco plans to raise capital from all possible sources – banks, stock market, even foreign investors possibly directly injecting fresh capital – to realize this gargantuan rise in exports that Beximco aims to achieve as it penetrates more foreign markets around the world.
Investments of BDT 3.5 billion (ID 32.08 million, US$ 50 million) have been poured into its new US F.D.A standard OSD plant. This, Mr Nazmul Hassan hopes, will raise its production capacity and provide a launch pad to the highly regulated but lucrative markets of Europe and U.S.A.
Contract manufacturing for multinational companies is another area it ventures into. It hopes that cost competitiveness will act as an incentive for boosting ‘outsourcing’ of generics manufacturing to Beximco. Looking at the huge global generics market, Beximco is waiting to capitalize on the imminent approvals from another 28 or so countries including many developed countries of its new OSD plant.
|
