Contemporary Transformations in the Global Pharmaceuticals Industry and Strategic Imperatives for Bangladesh Enterprises

Md. Abu Zafor Sadek, Syed Ferhat Anwar 
(Institute of Business Administration (IBA), University of Dhaka, Bangladesh)

Abstract: Global pharmaceuticals industry is expected to reach $1.5 trillion by 2021 with a moderate growth of 4%-7% although it was almost 9% in the recent past (IMS, 2016). This changes in the regular growth projection is due to some basic transformation in this sector among which gradual reduction of  blockbuster era, innovation crisis, requirement of high R&D investment, reduced health budget by many governments, emergence of biosimilars and traditional medicines, uneven price competition, drug approval stagnation, institutional buying, strict regulatory guidelines are important. Nevertheless, Bangladesh pharmaceuticals industry is now a promising global player with a domestic market size of $2 billion (BAPI, 2017). This sector is exporting medicines to 127 countries including USA, UK and other regulated countries with a global market capitalization of almost $ 82.11 million after meeting 98% of the local demands. The average growth in domestic and export markets are 15% and 24% respectively (The Daily Star, 2017 & BAPI, 2017). Although this industry seems to be very flourishing both in domestic and global market but it is highly dependent on other countries considering researches and technologies that would be major setbacks in the upcoming days. Therefore, this study illustrates the contemporary transforming in global pharmaceuticals industry & suggests some strategic imperatives for Bangladesh enterprises.

Key words: global pharmaceuticals industry; transformation; strategic imperatives; Bangladesh etc.

         JEL codes: L