People have to take some medicine every day due to illness or grief. In this rising market of daily necessities, where it is difficult to provide three meals a day to the common man, life is even more miserable when they have to buy medicines at double or triple the price to save their lives. Now 40 percent of the total income of low-income people in the country is spent on medicines. And the highest health-related expenses are on cancer and kidney diseases.
On Saturday, at the Sheraton Hotel in Banani, the capital, RAPID Chairman Dr. MA Razzak highlighted these points in the main article at the seminar titled ‘The Economic Impact of LDC Graduation on Bangladesh Pharmaceutical Industry and Its Implication for Drug Prices in the Local Market’ organized by Research and Policy Integration for Development (RAPID).
He said that the total direct and indirect expenditure of the country’s people related to medicines and health sector stands at about 73 percent, which is 17 percent higher than the average expenditure in the same sector worldwide. On the other hand, according to the 2022 report of the Bangladesh Bureau of Statistics (BBS), the major reason behind the increase in expenditure on the health sector is that on average 16.2 percent of families have at least one cancer or kidney patient. The cost of these two diseases is usually high.
Dr. MA Razzak said that after the transition from a least developed country (LDC) to a developing country, the donation of various products including medicines will increase. Which will have a negative impact on families. This has created a fear of increasing poverty. To deal with such a situation, the health and service sector will have to be reorganized through extensive reforms and financing will have to be increased.
He said that after graduation, the country will no longer have the existing incentives for exporting pharmaceutical products due to the conditions of the World Trade Organization (WTO). This will reduce export income from the pharmaceutical sector by 6.9 percent. However, since the foreign income of this sector is very low compared to the country’s total export income, it is not expected to have much impact on the economy. However, after graduation, 95 percent of Active Pharmaceutical Ingredients (API) will be produced domestically. This will play a role in protecting the normal supply of this sector from disruption.
Dr. MA Razzak said that Bangladesh is going to enter LDC graduation in November 2026. But the patent-free period of the product will remain for an additional three years. During this time, it should be taken into account as an opportunity to develop skills and adapt to the new LDC post-environment. In addition, API import should be reduced in drug production. This will help in local drug production. After a while, the acceptance of Bangladeshi manufactured drugs in the global market will increase and the foreign income of this sector will increase. If everything is done according to plan and target, the price of drugs in the country will not increase.
Dr. Mustafizur Rahman claimed that after LDC graduation, we will not have the existing facilities for several medicines. Among them, the cost of making new medicines including insulin will increase by up to 8 times. At the same event, former Senior Secretary Sharifa Khan said that under the conditions of the World Trade Organization, the facility will continue until 2029. However, it will not be in the case of medicines. Apart from this, there may not be 66 percent facility in the ready-made garment sector.
Former President of GSK Bangladesh Masud Khan said as a panel speaker that several billion dollars are being spent annually on importing drug patents and pharmaceutical equipment.
The event was moderated by RAPID Executive Director Professor Dr. Abu Yusuf, and the chief guests were the Chief Advisor to the Interim Government Dr. Lutfe Yasir Siddiqui, Special Envoy for International Affairs of Muhammad Yunus, and Associate Vice-Chancellor of Dhaka University Professor Dr. Saima Haque Bidisha.
