Square, Eskayef and two others eye $10m exports
November 20, 2008
Domestic pharmaceutical companies including Square Pharmaceuticals and Eskayef Bangladesh Ltd have slowly made inroads into the lucrative business of contract manufacturing of bulk drugs and formulations for global clients. Four top companies are eyeing exports of about $10 million this fiscal through contract manufacturing deals with European pharma majors.
Low labour and power costs, depreciation of US dollar against most currencies and comparative advantages for Bangladesh under the WTO’s agreement on Trade-Related Aspects of Intellectual Property Rights have inspired many global pharma giants to set up their contract manufacturing base in the country, industry experts said.
Eskayef Bangladesh Ltd, a leading pharma company, has signed agreements with two UK-based companies to manufacture their brands of cardiac, diabetic and hormone products. The company is also negotiating contract manufacturing deals with a German and a Dutch company.
“We are expecting that our overall export will reach around $5 million with the new deals of contract manufacturing this year,” A M Faruque, Managing Director of Eskayef Bangladesh, said, adding that “Inspectors from the UK have already visited the company’s state-of-the-art technology plant. We are hopeful, our plant will get the Medicines and Healthcare Products Regulatory Agency (MHRA) accreditation very soon.” The UK’s MHRA is one of the toughest registration processes for pharmaceutical products in the world.
Square Pharmaceuticals Ltd, the market-leader in Bangladesh, executed contract manufacturing deals worth $ 1.5 million with two British companies last year. It was the first company to receive the MHRA accreditation in May 2007. “We are negotiating with some European countries and are hopeful we will get some new contracts after completion of the inspection procedures,” Parvez Hashim, Executive Director, Square Pharmaceuticals said.
Renata Limited, the country’s second pharmaceutical company which received the MHRA accreditation last year, has sent its first consignment to the UK recently.
Another fast growing company Incepta Pharmaceuticals has also got manufacturing contracts from a German company and has initiated negotiations with two other German firms.
“We will supply diabetic and hypertension products to the German company and we are hopeful that our annual export through contract manufacturing will cross $2 million,” said Abdul Muktadir, Managing Director of Incepta Pharmaceuticals. The company has received accreditation from The European Medicines Agency (EMEA) that helps it get manufacturing contracts from European countries.
“Pharmaceuticals manufacturing opportunities in Bangladesh are brighter than ever because of the country’s Least Developed Country (LDC) status until 2016,” said Abdul Muktadir. “If the government provides all necessary supports to the pharmaceutical sector, it will be able to earn Tk 10,000 crore a year,” he expected.
Export earning from the sector was $13.63 million during July-October period of the current fiscal year, while $28.15 million in 2007-08 fiscal. The government has set a $32 million export target for the sector for the current financial year.
Source: The Bangladesh Today
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