31 Companies control 98pc of Bangladesh's medicine market, small firms struggle to Survive

Bangladesh has 324 licensed pharmaceutical manufacturers, but 98 percent of the country's pharmaceutical market is controlled by just 31 leading companies. The overwhelming dominance of large manufacturers has pushed many small and medium-sized pharmaceutical companies into a severe survival crisis.

According to the latest data from the Directorate General of Drug Administration (DGDA), updated this year, Bangladesh's pharmaceutical market is now worth approximately US$4 billion (Tk 400 billion). The country meets 97 percent of its domestic demand through local production and exports medicines to 157 countries. However, the vast majority of this market is concentrated in the hands of only 31 companies.

Among them, Square Pharmaceuticals holds the largest individual market share at around 17 percent, equivalent to nearly Tk 70 billion.

Incepta Pharmaceuticals ranks second with a market share of 12.5 percent, valued at approximately Tk 50 billion.

Beximco Pharmaceuticals, owned by businessman Salman F. Rahman and frequently in the spotlight for various reasons, commands nearly 10 percent of the market, worth around Tk 38.47 billion. It is followed by Healthcare Pharmaceuticals with about 8 percent, Renata with nearly 6 percent, and Eskayef Pharmaceuticals and Aristopharma with market shares of around 5 percent each.

The top 31 pharmaceutical companies include Square, Incepta, Beximco, Healthcare, Renata, Eskayef, Aristopharma, Opsonin, Popular, Radiant, ACME, ACI, Drug International, UniMed & UniHealth, Beacon, GSKA, Novo Nordisk, Nipro JMI, Ibn Sina, Novista, Sun Pharma, Navana, Synovia, Navian Life Science, Roche, Orion Pharma, Eli Lilly, Servier, General Pharmaceuticals, Everest Pharma, and Labaid Pharma.

Outside this group, companies such as OSL Pharma, Delta Pharma, Biopharma, Genphar Bangla Ltd., Pacific, Pharma Asia, Mundipharma, DBL Pharma, Jayson, Unido, Orion Infusion, Apex, Duper, Globe, Team Pharma, One Pharma, Rangs, and NAFCO Pharma are struggling to remain in business.

Among these firms, OSL Pharma has a market share of only 0.10 percent, valued at around Tk 403.9 million, while Globe, Team Pharma, One Pharma, Rangs, and NAFCO Pharma each hold just 0.01 percent of the market.

66 Companies Exist Only on Paper

According to DGDA data, although 324 pharmaceutical manufacturers are officially registered, 66 companies have no physical existence. Their products are unavailable in the market.

Authorities say the names and licenses of these non-existent companies are allegedly being used to manufacture counterfeit and substandard medicines in different parts of the country, posing a serious threat to public health.

DGDA Director General Mohammad Alamgir Hossain told Asia Post:

"Although there are 258 active registered companies after excluding the 66 non-existent ones, only about 150 are actually engaged in production. Around 20 companies do not manufacture their own products but keep their factories and workforce operational by producing specific medicines for larger companies under contract."

These factories have become important contract manufacturing partners for major pharmaceutical brands. Alamgir Hossain also said that leading pharmaceutical companies have not been directly linked to counterfeit or fake medicine production.

"Counterfeit and fake medicines occasionally appear in different parts of the country. However, investigations have not found any involvement of the top pharmaceutical companies. Such activities may be carried out by shell companies or very small manufacturers. We are aware of the issue and are working on measures to eliminate it."

Questions Over Quality

At least 15 to 20 small and medium-sized companies currently manufacture medicines for larger brands under contract manufacturing arrangements, raising concerns over product quality.

Professor Dr. Syed Sabbir Haider of the Department of Pharmaceutical Technology at the University of Dhaka said:

"Contract manufacturing is internationally accepted. Major pharmaceutical companies inspect factories, production environments, and human resources before selecting a contract manufacturer. However, there is always a risk of regulatory violations. If any irregularity occurs, both the DGDA and the parent company must take responsibility because their brand reputation is also at stake."

Even Well-Known Companies Under Pressure

Several once-prominent pharmaceutical companies are also facing severe financial difficulties.

Globe Pharmaceuticals, established in the 1990s, now holds only 0.1 percent of the market, while its business growth has fallen to negative 27.5 percent.

Companies such as Nipro JMI, Navian Life Science, Orion Pharma, General Pharmaceuticals, Labaid Pharma, and Delta Pharma are also experiencing significant challenges.

Former DGDA Director General and CEO of the Bangladesh Association of Pharmaceutical Industries (BAPI), Major General (Retd.) Md. Mostafizur Rahman, told Asia Post, "Over the past two years, the sharp rise in the US dollar exchange rate and soaring prices of pharmaceutical raw materials have significantly increased production costs, but medicine prices have not been adjusted accordingly. Large companies can absorb these losses, but smaller manufacturers cannot. Many have reduced production or shut down operations."

He added that BAPI and the DGDA are planning to introduce a grading system to evaluate pharmaceutical manufacturing standards.

"Companies failing to comply with Good Manufacturing Practice (GMP) standards will have their licenses revoked."

BAPI Secretary General Md. Halimuzzaman also stressed the need for stricter oversight of contract manufacturing to ensure medicine quality.

Call for Government Incentives

Experts say rising raw material costs and limited investment capacity have left smaller pharmaceutical companies unable to compete.

Professor Dr. Syed Sabbir Haider urged the government to provide special incentives to help small manufacturers survive.

DGDA Director Md. Akhtar Hossain said, "Bangladesh's pharmaceutical industry now has several large companies, making it difficult for any single company to create a monopoly by raising prices, because competitors would immediately capture the market. Our advice to smaller companies is to first ensure the minimum facilities required for pharmaceutical manufacturing. We will provide full regulatory support."

He argued that monopoly risks remain limited because multiple

internationally competitive pharmaceutical companies have invested billions of taka in the industry.

"If only one or two companies dominated the market, monopolistic pricing could become a concern. But with five or six major companies competing, prices remain competitive and no company can arbitrarily raise prices to control the market."

Professor Dr. Syed Abdul Hamid of the Institute of Health Economics at the University of Dhaka said, "If a company meets all regulatory requirements, the DGDA cannot legally prevent it from producing medicines. The agency's responsibility is to assess quality and production capability before granting approval. However, questions naturally arise over whether all approval procedures are being properly followed."

He also questioned whether new companies are contributing genuine innovation or simply producing common medicines such as paracetamol.

"The DGDA should determine whether new manufacturers are introducing innovation, improving quality, or reducing prices before granting approval."

Explaining why smaller companies are struggling, he said, "Small pharmaceutical companies lack both innovation and investment capacity. They mainly produce essential generic medicines. However, prices of 117 essential medicines have not been revised since 2017, making these products unprofitable. Large companies offset these losses through higher-margin specialty medicines developed via reverse engineering. Small companies do not have that advantage."

He warned that this trend is harmful to market competition, emphasizing that a healthy pharmaceutical industry requires the presence of strong medium-sized companies alongside large manufacturers.

As a possible solution, Dr. Abdul Hamid suggested that the government revise its procurement policy.

"The government procures medicines through Essential Drugs Company Limited (EDCL), but EDCL cannot manufacture every product. Instead of relying mainly on large companies for products beyond EDCL's capacity, the government could introduce a policy requiring procurement from qualified small and medium-sized pharmaceutical manufacturers. That would help them remain commercially viable while strengthening market competition."