Industry Analysis (Part 3)

Recent Trends in Pharma Industry in Bangladesh:

§      Cheers for local manufacturers: The Pharmaceuticals companies get cut off import duties for raw materials. The 2014 budget has brought good news for Pharma industry. Finance Minister AMA Muhit has proposed to reduce customs duties on 40 basic raw materials- used in manufacture of medicines- to a 5 percent concessionary rate from the existing 10-25 percent. The move will boost growth of Pharma sector, said Salman F Rahman, president of Bangladesh Association of Pharmaceutical Industries. (Source: http://www.thedailystar.net/cheers-for-local-manufacturers-27359).

§      Labaid Pharma began journey in 2014: Another pharmaceutical company began its journey in 2014 with a total of 19 different drugs which are available in market. (Source: Pharma Barta).

§      Square Herbal & Nutraceuticals Ltd. awarded the “Asia Responsible Entrepreneurship Awards 2014-South Asia”: Square Herbal & Nutraceuticals Ltd (SHNL) has been awarded the “Asia Responsible Entrepreneurship Awards 2014-South Asia” under the category of ‘Social Empowerment Award’.

“The Asia Responsible Entrepreneurship Awards is a regional recognition Award organized by Enterprise Asia to honor companies for outstanding innovative and world class products, services, projects and programs. These programs demonstrate the Enterprise’s leadership, sincerity and on-going commitment in incorporating responsible and ethical values, legal compliance, concern of the health issues, respect for people and individuals, involvement in communities and protection of the environment into the way they run their Enterprise.” (Source: Pharma Barta).

Key Success Factors in Pharma Industry:

In every industry, key success factors exist which are standards for performing in a particular industry. Pharmaceutical industry has some key success factors are: strong research and development facility, availability of innovative products, different product category, adequate manufacturing capacity, largest market share, global accreditation, contract partnership opportunities etc.

§      Strong research and development facility: Research and development facility helps to innovate new product, ensures good quality of products. A strong research and development facility is crying need for Pharma Company. As Bangladeshi Pharma companies collect raw materials then manufacture finished products, an effective research system should have. Moreover, for being successful and gaining large market share, quality products and their availability is important. Without strong research and development system which is impossible.

§      Innovative Products: To exist in drug and medicine market, product innovation is essential. A new product helps to create acceptance of company, makes scope for working and creates challenges in competitive market.

§      Different Products Category: A large product category makes familiar a company to all people. It is like advertisement. It creates leadership in products market. It is goodwill for any company. In pharmaceutical company, large product category gives opportunity to work in a large and competitive environment. For example: Square Pharmaceuticals Ltd has a different category of medicine such as

§      Adequate Manufacturing Capacity: Adequate manufacturing capacity is another key success factor. With product category and product quality large production volume helps to earn large amount profit which helps organization to capitalize more in other new productions, product innovation, research and development, products advertisement etc.

§      Largest Market Share: Market share can be large through large volume of production, large volume of product sales, contribution in GDP, qualified production, innovative production, effective share price, enormous capitalization and investment in different industry, great scope of employment opportunities. For example: Square Pharmaceuticals Ltd has a largest market share of total market 18.7% and leader of Pharma companies.

§      Global Accreditation: To be successful not only in nation global reach is must. To export products in a huge amount in global market helps to contribute in GDP, expanding market share, working in big area, working with new different products and building relationship with global companies and industries.

§      Contract Partnership Opportunities: The healthcare and medicine cost has been raised which is a big concern for Pharma companies to reduce this cost Pharma company should look for suitable partner to shift or outsourcing their production.