Until the third quarter of 2022, the market size of pharmaceuticals in Bangladesh was $3.32 billion. The domestic drug market has grown three times in the past decade and is expected to increase to $6.68 billion by 2027.  Zia Uddin, Chairman of Active Fine Chemicals & Managing Director of Pristine Chem Ltd., and President of EO Bangladesh, navigates regulatory challenges to establish local drug production and position Bangladesh as a global healthcare leader. With insights from the Entrepreneurs’ Organization (EO) network, Uddin’s vision of leveraging government support and expanding to international markets sets the stage for a thriving pharmaceutical future.

Nurturing Leadership & Innovation

“In the EO Network, we have opportunities for peer-to-peer learning, networking, engaging in forums, and, both globally and regionally, we host conferences where we learn and gain insights.”

EO network has more than 16000 members in 90 countries around the world. “In the SouthAsia region we have 30 chapters and 2500 members throughout SouthAsia,” says Uddin. The participants there can explore EO’s resources, funding opportunities, and learning prospects. “The conference offers sessions for each board chair, providing them with insights and resources to effectively manage and operate their chapters.”

The year ahead, too, is already planned with a lineup of exciting events. “On October 14, we are planning to host Verne Harnish, the founder of the EO network, in Bangladesh for the first time. In January, there will be a regional event for Bangladesh, as well as an event called the GSEA (Global Student Entrepreneurs Award), among the many other opportunities,” he adds.

Addressing the Challenge: Pristine Chem Limited’s Approach to Promoting Local Production of excipients for Life-Saving Drugs in Bangladesh

Zia founded Pristine Chem Limited to produce excipients, lab reagents & active pharmaceutical ingredients (APIs) locally for local & global markets.

In Bangladesh, the local pharmaceutical demand is more than $3.3 billion and growing with 97% of life-saving drugs locally manufactured. However, essential excipients and APIs required for drug production are predominantly imported. “We are dedicated to producing these raw materials for life-saving drugs in Bangladesh,” he mentions.

Bangladesh is number one in life-saving drugs production out of 40 LDC countries, Zia believes that Bangladesh can be a world leader in healthcare drug production, which was reflected well during COVID-19. The pandemic was an eye-opener to the world’s heavy reliance on APIs and excipients from China and India and Bangladesh’s potential to lead the way.

“We have all seen the struggle the world went through during the pandemic when China or India couldn’t supply enough raw materials. Bangladesh has the potential & capacity to become one of the key suppliers of life-saving drugs & excipients for the world.

Unleashing Worldwide Footprint Amid Regulatory Challenges

With over 12 years of experience, his leadership team has a long-standing relationship with several buyers in Egypt and Jordan, then Korea and Japan.

In his aim to methodically address different regions he says, “Although we have clear intentions regarding the European and US markets, the challenging regulatory environment poses a significant obstacle”, he adds. “In the next 5 years, we are trying to plan to cover up the South Asian market and the Middle Eastern and East Africa markets where there is substantial demand”. His roadmap then gradually extends to encompass markets in Japan, Korea, Europe, and the US.

In the pharmaceutical industry, there is a high level of regulation, with variations in regulations observed across different countries. The preparation process involves meticulousness, substantial costs, and a potential duration spanning several years. Although the United States represents the largest market, even upon obtaining FDA approval, the company will be required to contend with other competing firms. This explains his decision to take a deliberate approach and invest time before venturing into those markets.

Government’s Role in Elevating Bangladesh’s Healthcare Sector & Pharma Opportunities in Bangladesh

The MD of Pristine Chem found Bangladesh’s government very helpful about healthcare and has observed the government’s willingness to promote this sector. “When I had the opportunity to contribute and work on the API policy with the Ministry of Commerce they tried to incorporate the best policies for the sector, GOB has approved a 20% export incentive for the API & excipients manufacturer and a 10% export incentive for life-saving drug manufacturers And to encourage investment and local production of API and excipient production locally a tax holiday until 2032.”

Uddin is optimistic that pharmaceutical products have the potential to become a major export, as RMG. However, support is required for the growth of the pharmaceutical sector in the country and to extend the export basket. “The policy we have and its implications are a bit slow. If we can quickly apply these policies, that will help accelerate growth”, he adds, “Just as with the garment industry, the government’s support has propelled growth. Over the past 5 years, RMG has flourished, thanks to government backing. Similarly, the pharmaceutical sector has immense potential.”

Mr. Uddin says that the company has over three to four years left under the patent for our antiviral, diabetes, and lifestyle medications, including HIV treatments. In alignment with the WHO TRIPS Treaty, this patent exemption is applicable until the year 2032.

He also mentions the antiulcer market is the biggest in Bangladesh, with substantial demand for anti-diabetics, anti-hypertensive, and anti-cancer drugs. “The export market is growing, mostly for HIV. We are focusing on that as well”, he further states.

Upgrading & Upscaling the Workforce

Finding skilled employees becomes a challenging and critical task in Bangladesh when it comes to manufacturing APIs and excipients. However, his approach aids in benefiting his own company as well as the country by having a skilled workforce in this field. “We are often required to hire professionals from other countries but mostly from India. When we do bring in new hires, we also make sure to provide training to our existing employees to facilitate knowledge transfer and skill enhancement”, he says.

This process demands both time and effort, along with the incorporation of advanced technologies. Our dedication to knowledge sharing is reflected in our initiatives, such as hosting educational events and participating in conferences to foster learning and growth.

Empowering Entrepreneurs through Networking

Mr. Zia Uddin sees it as a great platform for entrepreneurs, facilitating networking opportunities and building trust and respect. “We have 17,000 proven members all over the world. Wherever you go, whatever country you go to, you have an EO member as a friend who will be there to help you.”

The EO Global Student Entrepreneur Awards (GSEA) are the premier global competition for students who own and operate businesses that fuel young entrepreneurs to transform their business ideas. Uddin is excited to have launched GESA in Bangladesh and started it as well. “The students who are graduating or recently graduated have a business; we allow them to pitch their businesses. And the champions get to go to the global level in EO. They also get to win 50,000 USD to support their business”.

The entrepreneurs of Bangladesh are showing brilliant potential. “We have been doing this for 4 years, and we are letting a lot of brilliant minds here. They are doing fantastic.

He deems that the drawback for Bangladeshi young entrepreneurs is funding. “Brilliant ideas need funding as well. In Bangladeshi culture, raising funds is difficult. But I think the perspective is changing, and I hope it will change further”.

Wisdom for Up-and-Coming Entrepreneurs

The entrepreneur gives paramount importance to maintaining focus. “One can save oneself from distraction. It’s much easier to find purpose, focus on your vision and work with the mindset to achieve this as a mission”. Also, we need to learn to enjoy the journey not only the destination. He sees taking small strides as commendable, as long as the unwavering dedication and consistent effort to ensure ongoing progress are maintained.

The strategy for long-term success, in Uddin’s experience, is to start with the basics and to remember a few key things when investing in businesses: “Even if a business is small now, think about the demand for the future. Also, consider if the business can scale up its worth to put all the energy and resources into it.