Bangladesh’s pharmaceutical sector has maintained a steady growth trajectory in the first eight months of the current fiscal year, fueled by increasing demand from developed markets. However, a sharp dip in February has raised concerns among industry insiders reportedly.
According to data from the Export Promotion Bureau (EPB), the sector earned $145.46 million from July to February in FY 2024-25, reflecting a 7.1% rise from the $135.81 million recorded during the same period in the previous fiscal year. This growth has largely been driven by the increasing presence of Bangladeshi pharmaceuticals in major Western markets, including the United States, Australia, and Europe.
Despite the overall positive trend, February saw an unexpected downturn, with earnings plummeting to $13.02 million – a significant 22.6% drop from $16.81 million in the same month last year.
Industry experts have linked this decline to multiple factors. A key reason was the recent reduction in U.S. foreign aid, which directly impacted exports from certain companies. Additionally, pharmaceutical shipments to Vietnam and Cambodia came to a temporary halt as business activities slowed during New Year celebrations in these countries.
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Monjurul Alam, chief executive officer of Beacon Medicare Ltd., noted that while EPB data suggests a slowdown, actual shipments are rising. He pointed out that export volumes traditionally dip in January and February due to seasonal pauses in Vietnam and Cambodia, but he expects a rebound in April once shipments to these markets resume.
Square Pharmaceuticals, one of Bangladesh’s leading drug manufacturers, takes a cautious approach to export deals. The company does not accept orders on credit from new buyers to ensure payment security, said a company official, explaining the firm’s careful strategy.
At Beximco Pharmaceuticals Ltd., the situation remains steady. Chief Financial Officer Mohammad Ali Nawaz stated that the company continues to supply medicines directly to the U.S. government, reinforcing its strong foothold in international markets. He highlighted that export orders have been growing consistently, reflecting a positive trend.
Renata Ltd. also sees stability in international orders, according to its International Business Manager, Ananta Saha. While growth has been slower than anticipated, Renata remains optimistic about its long-term prospects.
However, Incepta Pharmaceuticals Ltd. has felt a more direct impact from U.S. aid cuts. Executive Director Arefin Ahmed revealed that the company suffered a significant blow when USAID canceled an order for 2 million injection doses, valued at $2 million. USAID has been a long-term client of Incepta, making this sudden cancellation a setback for the firm.
While February’s slump has sparked concerns, industry leaders remain hopeful. With shipments to Vietnam and Cambodia expected to resume soon and demand from Western markets holding strong, Bangladesh’s pharmaceutical exports could soon regain momentum.
For more updates, be with Markedium.
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