Industry Analysis (Structure of Pharma Industry)

Industry Analysis

Industry Classification: 

As per Global Industry Classification Standard (GICS), it can be defined as Pharmaceuticals Industry, a part of Healthcare Sector.

Structure of Pharma Industry in Bangladesh:

In Bangladesh, Pharma industry has some different characteristics comparing other countries. It is a branded generic market. At present, there are approximately 258 manufacturers, with approximately 8000 branded generics in Bangladesh Pharmaceuticals market. Mainly, Pharma companies manufacture finished formulation with known generic and patented product combination. Some companies produce Active Pharmaceutical Ingredients (APIs).

Competitive Structure:

§      Degree of Concentration: As, Pharma companies do branded generic products business, they charge premium for well-known brands, and are enjoying a quite same market share. As a result, the top companies are gaining same position in market for the years. Like Square Pharmaceuticals Ltd is positioning as leader since 1985.

§      Market Dominance: The Pharma market in Bangladesh was controlled by 75% with Multinational Companies before the establishment of National Drug Policy and Drug Control Ordinance. Today, this market structure has been changed and local pharmaceutical companies are controlling the market. At present, 97% of local market demand is meeting by local Pharma companies and the top 10 multinational companies are enjoying 9.05% of market share, where local top 10 companies are enjoying 67.6% of market share.