[ALOCHONA] Pharma firms take to contract manufacturing

"M. M. Chowdhury (Mithu)" <cgmpservices@yahoo.com> wrote:

To: BDBusiness@yahoogroups.com
From: "M. M. Chowdhury (Mithu)" <cgmpservices@yahoo.com>
Date: Mon, 07 Apr 2008 16:55:10 -0000
Subject: [BDBusiness] Pharma firms take to contract manufacturing

Pharma firms take to contract manufacturing

Pharma firms take to contract manufacturing

Square, Eskayef and two others eye $10m exports

Jasimuddin khan

Domestic pharmaceutical companies including Square Pharmaceuticals
and Eskayef Bangladesh Ltd have slowly made inroads into the
lucrative business of contract manufacturing of bulk drugs and
formulations for global clients. At least four top companies are
eyeing exports of about $10 million this year through contract
manufacturing deals with European pharma majors.

Low labour and power costs, depreciation of the US dollar against
most currencies and comparative advantages for Bangladesh under the
WTO's agreement on Trade-Related Aspects of Intellectual Property
Rights have inspired many global pharma giants to set up their
contract manufacturing base in the country, industry experts said.

Eskayef Bangladesh Ltd, a leading pharma company, has signed
agreements with two UK-based companies to manufacture their brands
of cardiac, diabetic and hormone products. The company is also
negotiating contract manufacturing deals with a German and a Dutch
company.

"We are expecting that our overall export will reach around $5
million with the new deals of contract manufacturing this year. Last
year, our exports were to the tune of $1 million," A.M. Faruque,
Managing Director, Eskayef Bangladesh, said. Inspectors from the UK
have already visited the company's state-of-the-art technology
plant. "We are hopeful, our plant will get the MHRA accreditation
very soon," he added. The UK's Medicines and Healthcare Products
Regulatory Agency (MHRA) is one of the toughest registration
processes for pharmaceutical products in the world.

Square Pharmaceuticals Ltd., the market-leader in Bangladesh,
executed contract manufacturing deals worth $ 1.5 million with two
British companies last year. It was the first company to receive the
MHRA accreditation in May 2007. "We are negotiating with some
European countries and are hopeful we will get some new contracts
after completion of the inspection procedures," Parvez Hashim,
Executive Director, Square Pharmaceuticals said.

Hashim, however, declined to disclose the names of the British
companies Square had received work orders from given the price
sensitiveness. "The order size may not be big, what is more
significant is the fact that by bagging contract manufacturing
deals, Bangladesh is now in the map of the mainline pharmaceutical
industries," he said.

The company exported products worth $2.75 million in the previous
fiscal but projects exports to more than double this year.

Another fast growing company Incepta Pharmaceuticals has also got
manufacturing contracts from a German company and has initiated
negotiations with two other German firms."We will supply diabetic
and hypertension products to the German company and we are hopeful
that our annual export through contract manufacturing will cross $2
million in 2008," Abdul Muktadir, Managing Director, Incepta
Pharmaceuticals said. The company has received accreditation from
The European Medicines Agency (EMEA) that helps it get manufacturing
contracts from European countries. It already has a GMP (Good
Manufacturing Practices) Certificate of Europe.

Pharmaceuticals manufacturing opportunities in Bangladesh are
brighter than ever because of the country's Least Developed Country
(LDC) status until 2016, Beximco Chief Executive Officer Nazmul
Hasan said. "This is a win-win situation for both Bangladesh and
foreign pharmaceutical or investment companies because
investors/companies will get high return on their investment and
this will create high paid jobs in Bangladesh," he added.

The cost of medicines has increased in China and India since they
entered the WTO. Bangladesh has a unique opportunity to pare the
costs of manufacturing medicines due to the low-cost high-qualified
manpower and its LDC status.

M. M. Chowdhury (Mithu)
www.amreteck.com

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