BANGLADESH, PAKISTAN BOOST PHARMA SECTOR AMBITIONS

In the wake of India's new patent laws, the country's regional neighbours continue to eye opportunities posed by pharmaceuticals production. Both Pakistani and Bangladeshi officials have reported that drug exports have risen sharply in recent months.

In Bangladesh, pharmaceuticals and drug raw materials exports totalled US$240.47mn last year, compared to just US$5.03mn in 2001. According to local reports, the country now boasts 233 drugmakers, with annual output worth US$640.3mn in 2004 — sufficient to meet 96% of local demand. However, the country only exports 42 brands, covering 62 countries.

Meanwhile, Pakistan's government continues to highlight the pharmaceuticals sector as a key growth opportunity. Officials and producers recently agreed upon a new structure to ensure access to affordable drugs, in the wake of the government's recent decision to exempt APIs from sales tax. The country remains largely dependent on foreign raw materials, the vast majority of which are sourced from India and China. However, tariffs on bulk drug imports from India were recently increased to 35%.

Whether local export data is reliable remains to be seen, but recent initiatives have seen Pakistani drugmakers targeting high-growth central Asian former Soviet countries, while Bangladeshi exporters have pursued opportunities in North Africa and the Middle East.

Many of the recent changes have been tied to significant changes in the market dynamics of the two in countries' giant neighbour, India. Recent months have seen local expansions by some India-based companies to escape their home market's more stringent patent laws. Notably, Bangladesh is not expected to enter into formal compliance with TRIPS until 2016.