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Bangladesh has continued to earn more foreign currency from pharmaceutical exports, with receipts approaching $195 million in the first 10 months of the ongoing fiscal year.
The industry, long viewed as one of the country's most promising export sectors, has maintained its upward trajectory, while growing global demand has helped lift earnings.
Over the past 15 years, export income from pharmaceuticals has increased more than fivefold.
Industry leaders say the sector's progress has come despite weaknesses in raw material supply.
They believe improvements in that area could pave the way for pharmaceuticals to become Bangladesh’s second-largest export industry after ready-made garments.
An analysis of Export Promotion Bureau (EPB) data shows Bangladesh earned $44.2 million from pharmaceutical exports in FY2011.
The figure rose steadily over the next 15 years, reaching $213.16 million in FY25, more than five times higher.
Export earnings increased every fiscal year from 2010-11 to 2021-22.
Although income dipped slightly in FY23, growth resumed the following year and has continued since.
Maintaining that momentum, pharmaceutical exports generated $194.63 million during the July-April period of FY26, up 9.7 percent from $177.42 million recorded in the corresponding period a year earlier.
On a monthly basis, April delivered particularly strong growth.
Pharmaceutical exports rose 100.67 percent year-on-year to $23.96 million, compared with $11.94 million in April last year.
If export earnings in May and June match April’s performance, total pharmaceutical export revenue could approach $250 million by the end of the fiscal year.
Exporters are optimistic about reaching that milestone for the first time.
Abdul Muktadir, chairman and managing director of Incepta Pharmaceuticals and president of the Bangladesh Association of Pharmaceutical Industries, believes earnings could hit $5 billion within five years if domestic raw material production is scaled up.
He told bdnews24.com that Bangladesh is rapidly emerging as a global hub for high-quality, low-cost generic medicines, partly because many countries lack the facilities needed to produce them efficiently.
“Most importantly, Bangladesh is the only country among the 48 least developed countries that is nearly self-sufficient in pharmaceutical manufacturing,” he said.
“Ten Bangladeshi drug manufacturers have already secured approvals from the United States, the European Union, Australia and the World Health Organization.”
Muktadir identified raw materials as the industry's biggest challenge.
He said the Active Pharmaceutical Ingredient (API) Park being developed in Gajaria Upazila of Munshiganj could significantly strengthen local supply once it becomes fully operational.
Plots have already been allocated to various companies, while several manufacturers have begun building factories there.
Local production of raw materials, he said, would help take the industry much further.
The API park, however, has yet to fully materialise more than 15 years after the project began.
Much of the allocated land remains unused. Although Bangladesh produces 95 percent of its pharmaceutical needs domestically, nearly all raw materials are imported, resulting in an annual outflow of around $1.5 billion.
The government allocated land for the industrial park in Gajaria 17 years ago.
So far, only two companies have started producing raw materials there, while two others have begun preliminary work.
Land allocated to 23 companies remains vacant.
Medicines typically contain two types of ingredients: the API, which serves as the core raw material, and auxiliary inactive components known as excipients.
For instance, the API in a paracetamol tablet is called “para-acetylaminophenol”, which acts on the human body to cure illnesses.
Conversely, components like cellulose and talc in the tablet are excipients that help shape the API into a tablet and ensure quick dissolution without causing side effects.
Industry insiders say local pharmaceutical companies import at least Tk 100 billion worth of APIs each year.
They warn that costs will rise further after Bangladesh graduates from least developed country status in November.
Most APIs are imported from China and India. Business leaders argue that appropriate policy measures could significantly reduce dependence on imported raw materials.
The Bangladesh API and Intermediaries Manufacturers Association (BAIMA) says local firms have developed more than 40 APIs over the past eight years.
Some companies use their own APIs in medicine production, while others supply them to domestic manufacturers.
The association believes Bangladesh could meet 30 percent to 40 percent of domestic API demand through local production if manufacturers receive stronger financial support and incentives.
BAIMA President SM Saifur Rahman said countries such as India, China and Singapore have protected and incentivised their API industries.
“We need similar support, along with a simpler testing and approval process. Bangladesh’s experience in pharmaceutical manufacturing can provide a strong foundation for this industry,” he added.
“That is what we expect from the new government. We hope the issue will receive priority attention and that the finance adviser will make positive announcements in the new budget.”
Rahman also proposed the formation of a taskforce or commission for the API sector, similar to the high-powered committees operating in India.
Muktadir believes Bangladesh can replicate its garment-sector success in pharmaceutical raw materials.
He argues the country now has the capability to produce virtually any molecule.
While Bangladesh faces competition from 30 to 35 countries in garment exports, only a handful of countries, mainly China and India, compete in pharmaceuticals and APIs.
“Our pharmaceutical companies have completed all preparations needed to expand exports. Export earnings will continue to rise,” he said.
“We are confident that with government support and stronger local raw material production, the sector can bring in substantially more foreign currency.”
Only One Dip in 15 Years
Bangladesh began exporting medicines in 1985 and has since become the largest drug supplier among LDCs, while also expanding into the US and European markets.
EPB data show that three companies -- Beximco Pharmaceuticals, Square Pharmaceuticals and Incepta Pharmaceuticals -- accounted for nearly half of total pharmaceutical exports in the last fiscal year.
Beximco was the largest exporter, followed by Incepta and Square.
Other companies in the top 10 export rankings include Renata, ACME, Aristopharma, SKF, General Pharmaceuticals, Beacon Pharmaceuticals and Orion Pharma.
According to industry association data, around 1,200 pharmaceutical products have received export registration over the past two years.
They are now being shipped to more than 150 countries, including the United States, the United Kingdom, Canada, Australia, Germany and several European Union nations.
EPB figures show Bangladesh earned just $44.2 million from pharmaceutical exports in FY11.
By FY25, that figure had climbed nearly fivefold to $213.16 million.
Exports increased in every fiscal year over the past 15 years except one.
Earnings reached $188.78 million in FY22 before falling 7 percent to $175.42 million in FY23.
The sector bounced back in the following fiscal year and has continued to grow since.
The recovery also pushed annual pharmaceutical export earnings above $200 million for the first time in FY24, when Bangladesh earned $205.48 million and posted growth of 17.14 percent.