Rising demand from developed countries helped Bangladesh’s pharmaceutical exports expand steadily in the first eight months of the current fiscal year, but a steep drop in February sparked worries, according to industry analysts. According to figures from the Export Promotion Bureau (EPB) the industry made $145.46 million from July to February of fiscal year (FY) 2024-25. It’s up to 7.1 percent from $135.81 million during the same time the previous year.
Industry insiders ascribed the expansion to Bangladeshi medicines’ growing appeal in important Western markets, such as the US, Australia and Europe. The sector produced $13.02 million in February alone, a 22.6 percent decrease from the $16.81 million generated in the same month of the prior fiscal year. According to industry insiders a temporary halt in medicine shipments to Vietnam and Cambodia, where business activities slowed during New Year celebrations and recent cuts in US foreign aid were the main causes of the decline.
“Our exports have grown due mainly to increasing orders from the US, Unicef, and the World Health Organization,” said Muhammad Zahangir Alam the chief financial officer at Square Pharmaceuticals one of Bangladesh’s leading drug manufacturers and exporters in reference to the February decline they saying month to month fluctuations in shipments are common and depend on the timing of export orders.
He also stated “We have long term agreements in place to supply products to our buyers, so such fluctuations do not largely impact our exports.” In order to guarantee payment security Alam added that Square Pharma does not take export orders on credit from new customers. According to Mohammad Ali Nawaz, chief financial officer of Beximco Pharmaceuticals Ltd. export orders have not changed and the US government continues to receive direct supplies.
“During the first eight months of the current fiscal year, we have received strong export orders, including from developed markets such as the US, South Africa and Australia,” stated the CEO. According to Nawaz, the company’s export orders have been steadily increasing, which is indicative of a developing trend in global trade.
Mr. Johnson said “This steady growth in exports is a strong indication of the company’s resilience and adaptability in a competitive global market.” Monjurul Alam, CEO of Beacon Medicare Ltd, a company of Beacon Pharmaceuticals, stated that while EPB data suggests slowing exports in recent months, pharmaceutical shipments are really increasing.
He noted that shipments are often delayed in January and February because exports to Vietnam and Cambodia two major importers, cease at this time. “This seasonal slowdown explains the slight drop in February export figures,” according to him. According to EPB statistics pharmaceutical exports declined 22.6 percent in February from January.
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Alam anticipates exports to recover in April when shipments to Vietnam and Cambodia restart. “There is no reason to be concerned about negative figures for one or two months of shipments,” he told reporters. While pharmaceutical export statistics are small, they are significant for the country’s reputation and business, he explained. Ananta Saha the international business manager at Renata Ltd. shared Alam’s comments stating that export orders had remained consistent.
However, he acknowledged that export growth has not been as rapid as anticipated. Despite the sluggish pace Renata remains confident in its long term foreign commercial potential, he noted. Incepta Pharmaceuticals Ltd.’s position is different as US funding cuts had a direct impact on its exports leading to reduced shipments and financial strain on the company.
Incepta Pharmaceuticals’ executive director Arefin Ahmed stated that the recent loss of US government money had a substantial impact on the firm. “As part of the US aid program we frequently deliver huge quantities of medicine to numerous nations including Bangladesh. However, the unexpected withdrawal of this financing prompted us to cancel two important vaccination shipments,” he explained.
The canceled cargo contained two million injectable dosages worth $2 million. According to Ahmed, USAID has been a devoted customer of Incepta, Bangladesh’s second-largest generic pharmaceutical maker behind Pfizer, the United States-based pharmaceutical behemoth. The sudden cancelation disrupted operations, harming both income and the company’s commitment to provide important drugs, he stated.
Source: The Daily Star
