Retail pharma sales to peak in 2009

Sajjadur Rahman

Retail pharmaceutical sales are expected to reach Tk 6,000 crore this year, riding on people's health consciousness and booming hospitals and clinics, industry people say.

Annual turnover from retail drugs sales was Tk 4,701.63 crore in 2008, nearly 7 percent rise over the figure a year earlier, according to IMS (information on medical statistics) data. The market size was Tk 4,075 crore in 2007.

“We expect 15 percent growth this year based on the current sales trend,” said Mizanur Rahman Sinha, managing director of Acme, a fast-growing pharmaceutical company in the country.

Eskayef, which has been growing at 30 percent for the last several years, also believes that the market will grow nearly 15 percent in 2009.

“People's growing awareness, increased rural penetration of manufacturers and a significant development in healthcare sector helped the industry to grow,” said AM Faruque, managing director of Eskayef.

Some 250 small, medium and large local and multinational companies are in operation in Bangladesh. Many started their business after 2000 sensing the growth potential in the local market.

Of the 250 companies, top 10 companies -- Square, Beximco, Eskayef, Incepta, Acme, ACI, Opsonin, Renata, Aristopharma and Drug International take up nearly 70 percent of the total market share, according to the IMS 2008 survey.

The survey reveals that Square Pharmaceuticals, the flagship company of business conglomerate Square Group, holds the leading position in the local market with Tk 943 crore sales in 2008. The company alone holds a fifth of the total market share.

Incepta, the second, sold drugs worth Tk 354 crore in the local market last year.

Beximco, Acme and Eskayef are the third, fourth and fifth respectively, with Tk 333 crore, Tk 247 crore and Tk 218 crore in sales turnover.

“Actually, Eskayef's retail sales figure was Tk 306 crore in 2008. IMS figure didn't reflect it,” said AM Faruque.

The sales were only Tk 1 crore in 1990 when Transcom Group took over the company.

“We have set a target to sell Tk 400 crore worth of drugs this year,” said the Eskayef MD.

“We have recently got approval of UK MHRA (Medicines and Healthcare products Regulatory Agency) for non-sterile production of tablets, capsules and granules, which will help us to grow further in both local and foreign market,” he added.

Mizanur Rahman Sinha of Acme said rising population and health consciousness and booming hospitals and clinics are pushing retail sales up.

“People's buying capacity has also increased,” Sinha pointed out.

He said IMS survey covers only urban areas. “But we are very strong in rural markets,” he noted.

Beximco Pharma Director (Sales) Zakaria S Chowdhury also expects 15 percent growth this year, pointing to the positive changes in the country's political scenario after two-year uncertainty.

Besides meeting 97 percent of the nearly Tk 5,000 crore domestic market demand, the industry exported Tk 300 crore worth of medicines in 2008. The export figure was Tk 200 crore and Tk 150 crore in 2007 and 2006 respectively.

sajjad@thedailystar.net