Pharmaceutical exports from Bangladesh notched record growth in November this year as local drug makers secured new markets and larger orders, according to industry people.
Data from the Export Promotion Bureau (EPB) shows that the country’s pharmaceutical shipments rose by 52.45 percent year-on-year to $92.58 million in the July-November period of the current fiscal year.
In November alone the sector fetched $22.73 million from exports, indicating substantial growth from the $13.14 million earned during the same month a year prior.
“Export orders usually increase this time each year if the overall situation remains normal, as reflected by the shipment volume,” said Monjurul Alam, chief executive officer of Beacon Medicare Limited, a concern of Beacon Pharmaceuticals.
While acknowledging that export orders have risen significantly, he said the growth was aided by gradual improvements in the country’s US dollar stock and the subsequent easing of letters of credit (LCs) opening for raw material imports. And although the local pharmaceutical industry was rocked by worker unrest in September, the situation has been stabilising since October.
“Drug makers are now keen on boosting exports and finding new destinations,” Alam added while citing how the international marketing teams of local exporters are working hard to this end.
Mujahidul Islam, executive director (marketing and sales) for both domestic and international markets at Eskayef Pharmaceuticals Limited, said major importers like Sri Lanka, Nepal and Myanmar have resumed placing orders.
Against this backdrop, he expressed optimism that exports will grow further in the coming days as global economies continue to recover from economic crises brought on by the Russia-Ukraine war.
Besides, existing importers have started placing larger orders, Islam said while adding that the export growth was not equally shared by all in the local industry.
Ananta Saha, international business manager of Renata Limited, said they achieved their desired export growth this year despite facing a number of challenges, such as rising raw material import prices.
“Although we did not get significant growth over the past five months, the current growth rate is sustainable,” he added.
Saha also said nearly all of the leading pharmaceutical exporters are working to secure approval from drug enforcement agencies of foreign economies in a bid to expand their global footprints.
However, he informed that despite increased exports, the profit margins of local drug makers decreased as a result of the higher US dollar rates and rising raw material import costs.
“Manufacturers could not raise their product prices even though taka’s depreciation against the greenback hiked the production cost,” Saha added.
The country exports pharmaceutical products to at least 151 countries, including those in the EU, Africa and Latin America as well as the US, after catering to 98 percent of the domestic demand, according to Bangladesh Association of Pharmaceutical Industries.