Special Correspondent: Due to transition from Least Developed Country (LDC) list, the price of drugs in the country’s market will not increase. However, if the structural problems in the pharmaceutical industry are not resolved, a crisis may arise. This information has come out in a study by the private research organization Research and Policy Integration for Development (RAPID).
The Chairman of RAPID presented the research report titled “Effect of LDC transition on the pharmaceutical industry of Bangladesh and the price of drugs in the local market” at a function at Sheraton Hotel Banani in the capital on Saturday. MA Razzaq. The stakeholders participated in the event and agreed that the prices should not increase due to transition from LDC. However, they said, the competitiveness of the country’s pharmaceutical industry is decreasing due to the increase in gas and electricity prices.
MA Razzak said that after the transition from LDC in 2026, the price of drugs in the country’s market will increase, in addition to discussions with pharmaceutical industry stakeholders, data research has shown that Bangladesh has a new patent law in 2023 that is compatible with the World Trade Organization (WTO). -Benefits retained. As a result, it has been possible to eliminate the concern about the price increase after the transition. What can be done to control the increase in the price of medicines, is said in this law.
Rapid gave a projection of what might happen in which scenario. In this context, MA Razzak said, the importation of medicines which are not manufactured in Bangladesh has nothing to do with transition from LDC. At present intellectual property applies to 5 to 10 percent of medicines produced in Bangladesh, even in these cases Bangladesh is not obliged to give intellectual property according to the provisions of WTO. The patent law also covers the matter in such a way that one does not have to worry about them.
The law mentions what to do in the production of drugs which will come under patent after transition from LDC. It has been said that if there is a capacity to produce these drugs, 4 percent royalty will be paid in accordance with WTO law. In that case, the price of drugs in the country’s market will increase by 2 to 4 percent.
MA Razzak said, on the whole, there is very little risk of drug price increase due to transition from LDC. However, due to other factors, such as an increase in the price of active pharmaceutical ingredients (APIs), one of the raw materials used in the manufacture of drugs, the cost of drugs may increase. However, as an export-oriented industry, the cash incentives given to the pharmaceutical sector cannot be given after the transition to LDCs, he said, adding that the incentives have already been reduced. It can be a bit stressful.
The report mentions that the health expenditure of the people of Bangladesh is very high. The main reason for this is that Bangladesh is one of the countries in the world with the lowest budget allocation in this sector. RAPID recommends introducing micro health insurance for the poor and vulnerable population along with increased budget allocation to the health sector.
