OVERVIEW OF PHARMACEUTICALS INDUSTRY There are about 231 companies in this sector. The total number of brands /items that are registered in Bangladesh is currently estimated to be 5,300. The approximate total market size is about Taka 30,000 million per year. 95% of the medicines is produce by the local companies and the rest 5% is imported. Local companies are enjoying a market share reaching around 80%, while the MNCs are having a market share of 20%.
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OVERVIEW OF PHARMACEUTICALS INDUSTRY
There are about 231 companies in this sector.
The total number of brands /items that are registered in Bangladesh is currently estimated to be 5,300.
The approximate total market size is about Taka 30,000 million per year.
95% of the medicines is produce by the local companies and the rest 5% is imported.
Local companies are enjoying a market sharereaching around 80%, while the MNCs are having a market share of 20%.
LIFE CYCLE OF PHARMACEUTICALS PRODUCT
SWOT ANALYSIS OF PHARMACEUTICALS INDUSTRY
Strengths
There is a large population base in Bangladesh for the pharmaceutical sector.
The use of allopathic medicine is increasing with increase in number of qualified medical practitioners (MBBS doctors) and health facilities.
The top local companies are already exporting their formulation products and have the necessary technology and capacity to produce world standard products.
Weaknesses
Although Bangladesh manufactures 95% of the necessary formulation drugs it is heavily dependent on imported raw materials for their production.
The economy of the country is not strong enough to support the drug manufacturing industry to the extent that bulk drug manufacturing can begin based on the local demand only.
Compared to China and India, Bangladesh pharmaceutical industry operates in a much smaller internal market with an even weaker economy.
Opportunities
From 2005 onwards Bangladesh being a member of LDC will be allowed to produce cheap copies of patented drugs and their raw materials.
As Indian and Chinese companies will not be able to produce patented active ingredients but they have the necessary technology and expertise in reverse engineering and chemical synthesis they will be more interested in co-operation with Bangladesh after 2005.
The government has decided to set up an API park in Chittagong with the facility to house 20 plants and investment worth TK. 20 billion is expected.
Threats
Day by day cost of production has been increased.
Big multinational may come and take the major market due to their economies of scale, superior quality and product patent.
Cheap and substandard drugs especially from neighboring countries may enter the market illegally and destabilize the market.
Migrating from a product centric strategy to customer centric strategy
New medical legislation is re-shaping the healthcare space
Customer feedback can reside in everything from online communities, to internal CRM systems, to doctor patient interactions
The industry is fragmented because ten biggest pharmaceutical manufacturers cover only approximately 35 percent of the entire market volume
CUSTOMER ANALYSIS…
Integrated Services
Clinical integration: Doctors interact Doctors interact with other doctors, laboratories, pharmacies and insurance companies to exchange informationAdministrative integration: Hospitals and doctors interact with manufacturers of medical devices, pharmaceutical companies for administrative information
Financial integration: Insurance companies communicate with doctors, hospitals and pharmacies for accounting purposes
The rapidly growing industry is consist of approximate 250 companies which contributes almost 1% of the GDP and is currently the third largest tax paying sector in the country
Competitor Analysis…
ExternalForces
WTO’s TRIPS (Trade Related
Aspects of Intellectual Property)
Rapidly changing
international
marketplace
Competitor Analysis…
Serial
Name of Pharma
Tk (Corer) Share Growth (%)
Rank
Total market 7,186 100.00 24.30
1. Square 1,378 19.18 23.54
2. Incepta Pharma 650 9.05 32.17
3. Beximco 620 8.62 40.33
4. Opsonin Pharma
355 4.94 26.09
5. Eskayef 348 4.84 24.82
6. Renata 340 4.73 29.63
7. Acme 319 4.44 17.34
8. A.C.I. 293 4.08 18.81
9. Aristopharma 286 3.99 21.63
10. Drug International
270 3.75 18.18
11. Others 2,103 32.38 -
Competitor Analysis…
Five forces
Similar product
173 company
Similar price
Lucrative profitability
High Fixed cost
RIVALRY AMONG EXISTING COMPETITORS
Threats of New Entrants
Saturated market
Competition with big company
Lack of endorsement
High Investment
Low switching cost
Threats
Substitute
Pharmacy
Physician
Regulation
Media
Local Supplier
Cumulative Forces
Findings
one of the fastest growing sectors.
mainly dominated by domestic manufacturers.
operates in a smaller internal market.
Export opportunity is huge
Cost of production is increasing because of foreign imported raw
materials
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focusing on business to business marketing.
Costs of marketing hardly affect the price of the medicine.
Effect of globalization is increasing the competition.
price effective & affordable
Professionalism in marketing is not achieved yet
Recommendation
Funding of research should be increased.
Price policy should ensure ability to buy the drugs at a reasonable price
Pharmaceutical policy may also attempt to shape and inform prescribing.
Advertising cost should be reduced
Gets more emphasis on the product packaging and leveling
Continue…
Should frequently introduce new product to the
market
Build up more business relation with the doctors and chemists by
providing samples.
should produce quality product by using the updated
equipment and raw material.
should produce their product in a
hygienic environment
Distribution division should be enlarge through the local areas
