1. Prepared By: Sabrina Rezwan Khan (15) Asifur Rahman (17)
Sadman Prodhan (47) OVERVIEW ON THE PHARMACEUTICAL INDUSTRY OF
BANGLADESH
2. INDUSTRY OVERVIEW Inception: Around 1950 No of Companies: 231
Market Size: 76.5 Billion BDT Market Growth: 24.30 % Position: 2nd
(after Garments) in Industry Sector Demand Covers: 97% of Domestic
Market No. Of Medicine Brand: 5300 Market Share: Domestic 80% and
MNC 20% Exports: 72 Countries REF:
http://www.skfbd.com/index.php?page=25&pid=22 3. INDUSTRY
OVERVIEW The industry was incepted in 1950 After Liberation (1971)
market was dominated by MNCs and were dependent on imports In 1982
National Drug policy and Drug Control Ordinance introduced In 1982
there were 133 local firms Since then the domination of local firm
started 4. MARKET SHARE OF COMPANIES Serial Pharma Tk (Crore)
Market Share Growth % 01 Square 1378 19.18 23.54 02 Incepta 650
9.05 32.17 03 Beximco 620 8.62 40.33 04 Opsonin 355 4.94 26.09 05
Eskayef 348 4.84 24.82 REF:
http://mydreamlan.wordpress.com/2013/05/12/list-of-pharmaceutical-companies-and-top-pharmaceutical-companies-of-
bangladesh-2013/ 5. PESTEL ANALYSIS Political Factors Economic
Factors Political Instability (Hartal, Strikes etc) Export-Import
policy Tax and Tariff policy (27.5%) High GDP growth (6.2%)
Unemployment Rate (4.5%) Exchange rates Lower rate of inflation
(7.48%) Labor cost REF: http://www.bb.org.bd/econdata/intrate.php
&
http://www.mkazi.net/article-novartis-bangladesh-pharmaceutical-marketplace-
analysis.aspx#_Toc273314482 6. PESTEL ANALYSIS Social Factors
Technological Factors Alternate Methods used in rural areas
(spiritual, Herbal, Homeopathy etc) Religion Demographics features
of population 80% of Active Pharmaceutical Ingredient (API)
imported not produced Unreliable power supply force leads firms to
depend on self- generation of power Technological innovation only
in medicine production not in production of material/machine REF:
http://www.mkazi.net/article-novartis-bangladesh-pharmaceutical-marketplace-analysis.aspx#_Toc273314482
7. PESTEL ANALYSIS Environmental Factors Legal Factors Climate
change affects on operation The National Drug Policy 2005 states
that the pharmaceutical plants must comply with disposal of waste
streams World Bank (2009) reports Bangladesh is ranked 119 out of
183 economies on ease of doing business Monitoring and supervisory
role of DDA (Director of Drug Administration) WHOs current Good
Manufacturing Practices (GMP) should be strictly followed REF:
http://www.mkazi.net/article-novartis-bangladesh-pharmaceutical-marketplace-analysis.aspx#_Toc273314482
& http://www.worldbank.org/en/country/bangladesh 8. PORTERS 5
FORCE ANALYSIS Bargain Power Of Customer: Low Consumer has no
choice but to buy what Doctor says Buyers are scattered not united
(retail) NPPA (National Pharmaceutical Pricing Authority) tries to
control the price but not much effective Bargain Power of Supplier:
Low Pharma industry depends upon organic chemicals Chemical
industry is very competitive and fragmented so suppliar switching
is easier 9. PORTERS 5 FORCE ANALYSIS Rivalry Among Existing Firms:
High The number of firms in the industry is high Lots of similar
sized firms Product Differentiation Cost competitiveness Threat of
Substitute Products: Very Low Almost zero substitute for medicine
Biotechnology is a threat for industry but for Bangladesh this
threat will be quite mild for several decades 10. PORTERS 5 FORCE
ANALYSIS Threat of New Entrants: Very High Capital requirement is
low Creating a regional distribution network is easy 11. PORTERS 5
FORCE ANALYSIS 0% 20% 40% 60% 80% 100% Very Low Low Moderate High
Very High Very High High Moderate Low Very Low Buyer 0 0 2 7 3
Supplier 0 2 2 5 3 Competitor 1 5 3 2 1 Substitute 0 0 3 4 5 New
Entrant 6 3 2 1 0 A Small survey on 12 professional shows the
following result 12. DOMINANT TRAITS OF INDUSTRY Highly competitive
and Dynamic Too many players in Market Gradual and visible growth
Unlimited growth opportunity as there is little or no substitute
products Easy to access in the industry but difficult to retain due
to extensive competition Doctors community plays a vital role
Consumers dont bother about the pricing of the drugs/medicine as it
is a live saving product 13. DRIVERS OF CHANGE The pharmaceutical
industry were dominated by MNCs but after 1982 the scenario
changed. The Driving forces are- National Drug policy, 1982 Drug
Control Ordinance, 1982 Intellectual Property Legislation
(Trade-Related Aspects of Intellectual Property Rights or TRIPS)
Which provided the local companies the necessary drives to take
over the markets of Bangladesh. Other Drives are- 14. DRIVERS OF
CHANGE Doha declaration from implementing patent protection for
pharmaceutical patents until 2016 Foreign brands are not allowed to
be manufactured under license in Bangladesh if similar products are
being manufactured in the country 150 drugs were defined as
essential drugs. For those, level prices are fixed for the finished
drugs as well as for their corresponding raw materials 15. DRIVERS
OF CHANGE Other common drivers for the market are- Technological
Advancement Export Opportunity Changing Lifestyle Globalization
Government regulation and control Competitive enviornment 16.
COMPARISON BETWEEN 2 COMPANIES For a comparative study let us
evaluate the parameters of two companies Square Pharmaceuticals
Ltd: Market Position: 1st Turnover: 1378 Crore BDT Growth Rate:
23.54% Market share: 19.18% Orion Pharma Ltd: Market Position: 13th
Turnover: 140 Crore BDT Growth Rate: 31.47% Market Share: 1.94% 17.
COMPARISON BETWEEN 2 COMPANIES Vision Statement: Square: The
company sees business as a means to the material and social
wellbeing of the investors, employees and the society at large,
leading to accretion of wealth through financial and moral gains as
a part of the process of the human civilization Orion: To be
regarded as a world- class pharmaceutical company in the field of
generic finished products 18. FINDINGS Vision: Vision of Square is
Realistic while Orion is not Squares vision shows some Direction
Orions statement is too Generic Squares vision is Specific but not
Orions Squares vision directs toward a Destination Squares s
statement is more appropriate than Orions 19. COMPARISON BETWEEN 2
COMPANIES Mission Statement: Square: The mission of SPL is to
produce and provide quality & innovative healthcare relief for
people, maintain stringently ethical standard in business operation
also ensuring benefit to the shareholders, stakeholders and the
society at large Orion: To improve people's health and achieve
stakeholders' satisfaction by manufacturing and marketing
pharmaceutical finished products 20. FINDINGS Mission: Squares
mission statement does not answer Who they are but Orions does Both
statement are portraying what they actually does Both of the
statement states how they are going to achieve their vision But in
our opinion Orions statement is more appropriate 21. COMPARISON
BETWEEN 2 COMPANIES Objective: Square: The objective of the company
is to conduct transparent business operations within the legal
& social frame work with aims to attain the mission reflected
by its vision Orion: Orion Pharma Ltd. is dedicated to serving its
valued customers with products of excellent quality through
continuous improvement in technology, process and human resources
complying with the requirements of ISO- 9001: 2008 Quality
Management System (QMS) 22. FINDINGS Objectives: Both of the
objectives are Clear Orions objectives are too Specific which makes
it Non-flexible Squares objective focuses on Vision Orion brought
ISO- 9001:2008 which seems Redundant 23. THANKS ALL
