Pharma faces soaring input costs, dollar crisis: Entrepreneurs

Bangladesh's pharmaceutical industry is currently passing through tough times due to the high costs of freight, energy, and raw materials, as well as a strong dollar, medicine manufacturers claimed at an event on Thursday.

"The Russia-Ukraine war broke out just last year as the pharmaceutical sector was beginning to recover from the Covid pandemic. As a result, the worldwide supply chain was disrupted, and raw material prices skyrocketed," said Nazmul Hassan Papon, president of the Bangladesh Association of Pharmaceutical Industries.

"Besides, the increase in the prices of electricity and fuel has also added to our rising production costs. These are the major reasons why we are currently experiencing a very tough time," he said while inaugurating the three-day 14th Asia Pharma Expo and Asia Lab Expo at Bashundhara Convention City in Dhaka.

According to the association, 645 companies from 27 countries, including the United States, China, England, Germany, Malaysia, India, Thailand, Italy, Japan, Switzerland, Taiwan, Ireland, and Bangladesh, have participated in this year's expo.

This arrangement includes pharma processing and packaging, biotech lab equipment, API manufacturing plants and machinery, pharma formulations, and contract manufacturing.

At the expo, domestic and foreign entrepreneurs will get to know details about various types of modern technology equipment and parts and raw materials related to the pharmaceutical industry, the association added.

Nazmul Hassan Papon, who is also managing director of Beximco Pharmaceuticals Ltd (BPL), said the price of medicine has not gone up that much when compared to production expenses.

"Besides, we cannot just hike the prices of medicine as we have to take into consideration people's purchasing power. So we all have to work together to provide quality medicines at low prices in such difficult times."

"In this situation, we have to save foreign currency. Exports should be increased for that purpose. Besides, local pharmaceutical ingredient (API) production should be increased. Through pharma exhibitions, we can increase our exports. This exhibition will help us overcome the challenges together," he added.

He said Sri Lanka and Pakistan are suffering from a shortage of drugs but Bangladesh is in a much better situation than them. "By working together, we will be able to overcome this difficult situation."

The association president further said that despite the tough times, the pharma industry grew by 12-15% last year.

"We are trying to ensure that there is no shortage in the supply of medicines."

Asked about a recently published study by the Health Economic Unit, he said, "The study claimed that of all the money a person spends while seeking health care, 60% accounts for drug purchases.

"This is not true and is completely baseless. In fact, people in Bangladesh buy drugs at very low and affordable prices."

Abdul Muktadir, chairman and managing director of Incepta Pharmaceuticals Limited and also vice-president of the association, said, "A kind of crisis has been created in the pharma sector in different countries, including America and in Europe. We are also facing various economic challenges in our country. But overall, the progress of our potential pharmaceutical industry is very good. In the future, our pharmaceutical exports will increase further."

Major General Mohammad Yousuf, director general of the Directorate General of Drug Administration, said, "Providing drugs at a low cost is a big challenge for us now. Despite the rise in material prices, the cost of medicines has not risen significantly."

Ravi Udaya Bhaskar, director general of the Pharmaceuticals Export Promotion Council of India, Paresh Jhurmarvala, chief executive officer of GPE Expo Private Limited, and representatives of other foreign companies also spoke at the event.