Aristopharma, a prominent pharmaceutical company in Bangladesh, holds the 7th position in the revenue ranking. While the projected growth appears ambitious in comparison to the last four years‘ CAGR, the company’s strides in manufacturing generic medicines, biotech products, herbal and oncology medications, and other areas instill confidence in its potential. Aristopharma has had a steady growth rate over the last 4 years and holds promising product lines to be launched in different sectors by 2025. 

Reducing Import Dependency & Meeting Market Needs 

Mr. Imtiaz mentions that the patent-exemption manufacturing of many types of generic medicine is likely to cease within the year 2033. As a result, the overall price of medicines in Bangladesh may increase due to patent royalty charges. 

In line with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) by the World Trade Organization (WTO), Bangladesh, classified as a Least Developed Country (LDC), benefits from patent exemption until January 1, 2033. This exemption empowers Bangladeshi manufacturers to introduce new products to their local market without the threat of patent infringement. Additionally, the country can export generic iterations of patented drugs to nations lacking patent coverage or where compulsory licenses are issued for conditions like cancer or HIV/AIDS treatment.

As Bangladesh moves towards graduation to a middle-income status from its LDC classification by 2026, the duration of this privilege is limited. To manage the initial impact of royalty charges, strategic initiatives are in place, including the launch of numerous generic medicines ahead of the deadline, the establishment of R&D facilities, and a focus on local active pharmaceutical ingredient (API) production. It remains crucial to prioritize generics with enduring market demand and patent validity extending beyond 2026. Concurrently, Aristopharma’s efforts are directed toward enhancing API production within the API park to diminish import reliance and lower manufacturing expenditures.

Harnessing Innovation in Pharmaceuticals 

Aristopharma has excelled in its effort to adapt to technological advancements; as a result, it launched integrated SAP S4 HANA for the first time in the Bangladeshi pharmaceutical market in 2018. 

Their efforts are reflected in their business modules such as sales and distribution, supply chain, production, accounts, and HR & payroll—a comprehensive approach uncommon in the Bangladeshi pharmaceutical landscape. As a continuation, the company has introduced advanced tools like SAP Analytical Clouds and BW4 Hana for robust data warehousing and analytical dashboards. These technologies enhance various facets, including sales and distribution, accounts, and supply chain management, underscoring Aristopharma’s commitment to innovation and efficiency.

According to the Director of Aristopharma, these initiatives have expedited data management and analytical capabilities, ensuring swift operations while maintaining data integrity and accuracy. The result is enhanced overall efficiency and a fortified decision-making process, underscoring the substantial benefits derived from these strategic adaptations.

Aristopharma’s thirst for innovation is never-ending, so recently it introduced a mobile ordering app (MSFA) that ensures live reports, which is also the first time in the Bangladesh pharma market. “Now our ordering process is more efficient, and the risk of errors is very low. Aristopharma has invested a lot to develop world-class R&D labs for reverse engineering and advanced formulations like anti-cancer drugs, advanced ophthalmological formulations, biotech products, etc.” Mr. Ahmed Imtiaz states.

Tackling the After-effects of the Pandemic 

The pandemic helped the industry achieve a staggering 18.56% growth in the 2020–21 fiscal year. We have reached the post-pandemic phase, where the focus on APIs (Active Pharmaceutical Ingredients) is subsiding. 

While only leading pharma companies could keep growing, most small ones witnessed a slump in their business owing to being lesser-known brands. The pandemic has taught us a lot about mitigating challenges in business and forecasting the future. “We brought a new therapeutic solution with emergency approval from the DGDA to combat a pandemic like hydroxychloroquine. The importance of APIs was well understood then, as the earth stopped for a while, disrupted supply chains, huge demand, etc. were key factors.” 

“So, now we are focusing on establishing our API plant at Gojaria, Munshigonj, as soon as possible, and we have a list of prioritized molecules, including antibiotics, cardiovascular drugs, antidiabetic drugs, and biotech products. A few other manufacturers would also do the same at a time, which will help to fulfill the requirements of the whole industry so that together we can decrease the dependency on imported APIs,” he adds.

Contributing to Bangladesh’s GDP

The pharmaceutical industry in Bangladesh holds a market value of approximately $3 billion, contributing around 1.83% to the country’s GDP. 

According to the Bangladesh Investment Development Authority (Bida), the pharma industry has immense potential in the healthcare sector, as Bangladeshis spend around $2.04 billion abroad annually for medical treatment, which is around 1.24% of the country’s GDP. The demand for healthcare services is also growing at about 21%, and the increasing purchasing power of the growing middle and upper-middle classes will contribute positively.

Dependency, as well as consumption of pharmaceutical products, will rise as there will be a rise in health awareness, life expectancy, per capita income, changing disease profiles, lifestyle changes, and climate changes. 

Mr. Ahmed believes that the government of Bangladesh will play a significant role in the rapid growth of the pharmaceutical market by providing favorable policies for easy drug approval, production, and marketing of new products. He believes that the government should prioritize all backward linkages related to the faster establishment of API parks. 

“Like India, Bangladesh may also amend the patent law so that it can declare all medicines available until the date of graduation are off patent. Not only that, the government should implement policies to reduce expenditures related to the import of raw materials. Such as duties & taxes on the import of raw materials, packaging materials, etc.,” he feels.

He continues adding, “Considering the current crisis of USD globally, pharma exports can contribute to maintaining a healthy USD reserve. So, to motivate exports, the government may also increase the incentive from 10% to 15%. In this regard, high commissions in different countries would play a vital role in promoting our quality standards to the health regulatory authorities of the respective countries.”

Fighting Against Counterfeit Medicine 

The Director of Aristopharma believes that the supply of counterfeit medicines in the local market is usually caused by non-registered drug makers. 

While seeking means to monitor medicines, Ahmed says, “To counteract this issue, DGDA & law enforcement agencies are working together regularly. Along with that, we must also increase social awareness among our people. We may conduct a national day against counterfeit medicine in our societies, using electronic, print, and social media to increase awareness among our patients.”

“If we come to the quality of medicines manufactured by Bangladesh’s top pharma companies, all of them are maintaining strict standards for producing their medicines for local as well as export purposes. These standards start with sourcing the API & excipients from foreign API manufacturers with USFDA/ UKMHRA/ EMA standard facilities & confirming the grading of API with USDMF/ COS/ CEP/ EDQM. And in our manufacturing plants, from RM dispensing to production, IPC, QC, QA & distribution of finished products, a standard SOP is strictly maintained,” he says. He also assures that these standards are not only maintained for domestic production but also for export orders. The basic difference that remains between local & export products is the packaging materials of core products.

Mr. Imtiaz shares that in Bangladesh, there may be more than 250 pharma companies, and we can’t be assured that all are producing quality medicines. He feels that to produce quality medicines, these companies are in need to upgrade their infrastructure, develop and train their technical workforces, and develop and maintain SOPs to ensure the quality of medicines. 

Inviting the Public Health Sector to Take the Lead

Mr. Imtiaz feels that efficient and high-quality public health systems require both skilled personnel and robust infrastructure to effectively address population health needs. “Given the persistent threat of future pandemics, compounded by the escalating risks of climate change, the onus falls on political leaders across national, regional, and global levels to collaborate and ensure ample funding for the Health Care Workforce (HCWF). This goes beyond mere investment protection and augmentation; it entails a strategic funding approach that prioritizes efficiency-driven actions,” he feels.

He adds, “By doing so, additional capital and operational investment can be harnessed to expand healthcare capacity, aligning with population demands. Even amidst decelerating economic growth, sustaining investment in education, employment, and HCW retention becomes paramount to public expenditure. This multifaceted strategy bolsters supply, safeguards the existing workforce, and prepares healthcare systems to tackle future challenges.” 

The visionary prioritizes education, nurtures human capital, encourages innovation, fortifies the healthcare workforce (HCWF), effective training for primary care HCWF, especially in underserved regions, and optimizes service delivery. He deems strategic investments and incentives to address gaps in hard-to-reach areas and ensure HCWF employment and protection preserve educational investments’ value.

Empowering Local Market

The Director also feels that the political commitment to HCWF has to align with Universal Health Coverage (UHC) and Sustainable Development Goals (SDGs), fostering retention and motivation. He relies on collaborative multilateral, regional, and domestic endeavors to ensure sustained investment.

Mr. Imtiaz says, “Aristopharma is planning to produce both biological & nonbiological APIs covering antiulcerants, cardiovascular drugs, antidiabetics, respiratory drugs, and a few biotech drugs (MABs) initially.”

“Later, we will go into manufacturing APIs for antibiotics and other therapeutic classes. Thus, initially, we are trying to cover molecules of those therapeutic classes, which contribute around 25% of the overall Bangladesh pharma market,” Ahmed envisions looking at the bright future of Aristopharma and other pharmaceutical ventures in Bangladesh in the upcoming years.