Bangladesh, Pakistan Study Drugs Joint Venture Outside WTO Fold

Pakistani officials have mooted the possibility of greater co-operation with Bangladeshi pharmaceuticals interests as neighbouring India adopts its new WTO-compliant patent regime. The two countries could sign a memorandum of understanding on the issue, committing to maximising opportunities ahead of Bangladesh's scheduled implementation of TRIPS patent legislation in 2016. Any new arrangements may also benefit Pakistani drug exporters, as production in the country is understood to be significantly cheaper than in Bangladesh.

Bangladesh currently has about 15 drug manufacturing units, mainly producing basic medicines for the small local market. However, according to official sources, the country's drug export trade increased from about US$20mn in 2003 to US$50mn in 2004, with destination countries including Taiwan and Singapore, as well as Pakistan. Local companies are also reported to be negotiating access to Middle Eastern markets.

There is evidence that the local Bangladeshi 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.