Bangladesh to Profit From Tighter Indian Patent Law

Pharmaceutical producers in Bangladesh stand to gain considerably from the implementation of neighbouring India's new World Trade Organisation (WTO)-compliant patent law. Although the country is a member of the WTO, it has until 2016 to comply with the intellectual property requirements of TRIPS. There are currently approximately 15 manufacturing units in Bangladesh, mainly producing basic medicines for the small local market.

However, according to official sources, the country's drug export trade increased from roughly US$20mn in 2003 to US$50mn in 2004, with destination countries including Taiwan, Singapore and Pakistan. Local companies are also negotiating access to Middle Eastern markets. Meanwhile, industry groups claim that WTO provisions scheduled to take effect next year allow low-income countries such as Bangladesh to violate patents and export pharmaceutical products.

There is evidence that the local sector is becoming more sophisticated, as Indian companies such as Sun Pharmaceuticals enter the market with local joint ventures. If the country succeeds in boosting production of active pharmaceutical ingredients and complex compounds, the multinational sector is unlikely to welcome the emergence of a new "back door" for unauthorised generic production.