Bangladesh Pharmaceutical Industry: An overview.

Bangladesh is the eighth largest densely populated country of the world which is 2.3 per cent of
the total size around the globe. With this population, Bangladesh has an emerging economy in
the world. During the last 10 years, the GDP growth rate is consistently >6.5 per cent and
industrial or manufacturing growth rate is 11.2 per cent which is remarkable.

In the health sector, Bangladesh has emerged rapidly during the last 10 years. The infrastructure
has developed during this period. Bangladesh has achieved tremendous success in
pharmaceutical sector as well. Pharmaceutical industry is using state-of-the-art manufacturing
technology and highly skilled human resources. This industry is the fastest growing sector in
Bangladesh. The domestic market size is US$1.136 billion with a growth rate of 23.59 per cent
in 2011. During the last several years, this sector is having significant growth. Within next 4-5
years, the expected market size of Bangladesh would be around US$ 2.5 billion per year.

The pharmaceutical industry of Bangladesh is a wonder and one does not require a degree in
finance or economics to be able to see the truth in this statement. In a country characterized by
political instability and omnipresent corruption, while almost every other form of industries is
facing impeding obstacles, the relative calm and stability conspicuous in the pharmaceutical
industry are astonishing.
There are 260 registered pharmaceutical companies, among which 191 are in operation. The
manufactured products of these companies are meeting 97per cent of the domestic requirement.
Some vaccines, anticancer products, hematological products, biotech products are being
imported. These 191 companies are marketing more than 1350 molecules with 23500 brands in
the country. Bangladesh pharmaceutical industry is dominated by the local pharma companies,
i.e. 90 per cent of the market share is owned by the local companies. Top 20 companies are
enjoying 82 per cent market share.

Bangladeshi pharmaceutical companies plan to strengthen their global foot-print as they target to
take their products to 30 new destinations within 2013-14. Country's pharmaceutical industry has
made big strides since the enforcement of the National Drug Policy back in 1982. The sector has
gone through a sea change over the last three decades. The multinational pharmaceutical
companies that once used to dominate the sector now have an insignificant presence. At present,
Bangladesh exports pharma products to 87 countries, including the US and a few European
nations, after meeting 97 per cent of the local demand by the domestic companies, some of
which are fitted with most modern and state- of-the-art manufacturing facilities. The
pharmaceutical sector has also been making its mark in the field of export. Last year, the country
fetched over Tk.4.0 billion through export of medicines. The export potential is, however, far
larger.

Pharmaceutical export is contributing substantially to the GDP of the country, and every year,
this contribution is increasing at a greater pace. In terms of foreign currency, pharmacy sector
has been ranked as the second largest potential sector in Bangladesh.

While Bangladeshs earnings from remittance and RMG exports are facing threats due to global
economic and political reasons and domestic problems the impressive prospect of
pharmaceutical export is reassuring.
According to the IMS, the size of Bangladesh's domestic drug market was $977 million in
calendar year, 2010, $797 million in 2009, and $686 million in 2008, on the basis of moving
annual total (MAT).

The IMS, a US-based organization, has been providing pharmacy market intelligence to more
than 100 countries over the past 50 years. Its factual data are based on the country's retail sales
only. Institutional sales and import of drug has remained outside the purview of the study. The
market size has doubled over the last
five years, mainly due to increased penetration by the local drug manufacturers.
Accounting for just 0.2 per cent of non-OECD pharmaceutical exports in 2009, Bangladesh has a
tiny share of the global market 0.01 per cent in 2009. Even so, it has by far the largest
pharmaceutical sector, and the largest pharmaceutical exports, of all Least Developed Countries.

Exports of pharmaceuticals from Bangladesh are still small in scale at just around US$ 67.45m in
2012, worth approximately five per cent of the value of sales in the domestic market. However,
they are increasing rapidly at a compound annual growth rate of 26.1 per cent between 2002
and 2012. Most of the growth is coming from exports to middle income countries and to nearby
low income countries (Myanmar, Afghanistan, Nepal). While exports to the EU reached almost
US$15 million in 2007, they have fallen off since. Most exports are to markets where
pharmaceuticals are unregulated to medium regulated. Even relatively lightly regulated markets
can be challenging to access, with significant delays to obtaining approval.
The Bangladesh Pharmaceutical Industry Association has set out a vision of growth for the
future, called Pharma Vision 2015.

Major points set out in the vision include

To safeguard public health of 160 million people (i.e. Bangladeshs population) by

providing quality product to be produced by all companies

To become a global hub for pharmacy industry

To export generic products worth US$ 5 billon.

To get approval for 30 companies by the regulatory authorities of developed countries

To get DMF/EDMF16 of API for 40 API producing companies

The major factories of the sector have achieved some degree of excellence and obtained
international recognition, such as US certification from the FDA, UK certification from the
MHRA & TGA from Australia.

Bangladesh is taking the advantage of TRIPS agreement as being a LDC is exempted from patent
protection until 2016. Bangladesh is a market of cheap labor. Thats why MNCs are interested for
contract manufacturing and strategic alliance. Moreover, skilled personnel are produced in the
country. Presently, Bangladesh is getting the leverage from TRIPS agreement being one of the
LDCs, so that we can manufacture even varieties of patented molecules and export them, mainly
to other members of LDCs because they are not as well-equipped as Bangladesh. Bangladeshi
pharmaceutical companies have already developed their manufacturing facilities with skilled and
trained personnel since its independence. The pharmacy companies earned the potential to easily
penetrate into all the LDCs, some Asian and African moderately regulated countries. In addition,
pharmacy industries of Bangladesh are now on the verge of entering into highly regulated
overseas markets like Australia, USA and Europe. So it is just a matter of time for Bangladeshi
companies to become a major generic player in the globe.

Square Pharmaceuticals: Company Overview and History.

In Bangladesh Pharmaceutical sector is one of the most developed hi-tech sector which is
contributing in the country's economy. After the promulgation of Drug Control Ordinance - 1982,
the development of this sector was accelerated. The professional knowledge, thoughts and
innovative ideas of the pharmacists working in this sector are the key factors for this
development. Due to recent development of this sector it is exporting medicines to global market
including European market. This sector is also providing 95% of the total medicine requirement
of the local market. Leading Pharmaceutical Companies are expanding their business with the
aim to expand export market. Recently few new industries have been established with hi-tech
equipments and professionals which will enhance the strength of this sector.
Square today symbolizes a name a state of mind. But its journey to the growth and prosperity
has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top
line conglomerates in Bangladesh. Square Pharmaceutical Limited, the flagship company, is
holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985
and is now on its way to becoming a high performance global player.

The Corporate History of Square Pharmaceuticals Limited:

Year of establishment
Incorporated as private limited company
Technical Collaboration Agreement with Janssen Pharmaceuticals of Belgium
Converted into public limited company
Initial public offering (IPO)
Stock exchange listing (Dhaka and Chittagong)
Awarded ISO 9001 certificate
Awarded UK MHRA certificate

1958
1964
1975
1991
1994
1995
1998
2007

Company Overview
Business Lines: Manufacturing and marketing of pharmaceutical finished products, basic
Chemicals, Agro Vet products, and Pesticide products.
Authorized Capital:
BDT 1000 Million
Paid-Up Capital:
BDT 596 Million
Number of Employees:
3000
Subsidiary Company:
Square Spinning Ltd
Square Cephalosporin Ltd
Associate Company:

Square Textiles Ltd

Square Fashions Ltd
Square Hospitals Ltd

Company Vision:
Square Pharmaceuticals see business as a means of the well beings of the investors,
employees and society at large, leading to accretion of wealth through financial and
moral gains as a part of the process of the human civilization.
Company Mission:
Square Pharmaceuticals mission is to provide quality and innovative healthcare relief for
people, maintain stringently ethical standard in business operation also ensuring benefits
to the shareholder and other stakeholders.
Company Objective:
Square Pharmaceuticals objective is to conduct transparent business operation within the
legal and social framework with aim to attain the mission reflected by our vision.