Pharma firms bet big on new B'desh law

Domestic drug firms, which lost the opportunity to sell cheap versions of patented medicines after changes in the Indian patent law three years ago, may find the going good in Bangladesh.

Chances of technical partnerships in Bangladesh have brightened after it changed its patent law in an attempt to become a hub for manufacturing cheap copies of patent-protected medicines. The World Trade Organisation allows such medicines to be produced in least developed countries till 2016.

"This presents an exciting opportunity for the Indian companies. Since the passage of the 2005 Act, a number of companies have been concerned that their old business model of relying purely on generic sales cannot work as well. However, given that Bangladesh has a robust pharmaceutical base, they may think of setting up some of their operations there," Shamnad Basheer, research associate, Oxford intellectual property (IP) Research Center, UK, said.

According to Bashir, the provisions for "parallel imports" in the Indian Patent Act allow import of medicines from any destination if the exporter of such a patent product is duly authorised under the law (of that country) to produce, sell or distribute the product. In other words, drugs manufacturers in Bangladesh could also use this to tap the market in India.

Nazmul Ahsan, general secretary, Bangladesh Association of Pharmaceutical Industry (BAPI), agrees.

"Our government is actively considering various provisions to incorporate the flexibilities of TRIPS (trade-related intellectual property rights) within the patent law. It will be in the form of annexes that make production of medicines having patent protection elsewhere legally possible. We will be able to supply it to other developing nations also," he said.

India, under its new patent regime, cannot supply raw materials or bulk drugs of patented medicines. However, it can supply intermediates (which are one step down in the manufacturing cycle of bulk drugs) anywhere in the world.

If Indian companies can strengthen the technological capabilities of their Bangladesh partners, these intermediates can be further developed into bulk drugs and finished medicines in that country. While these medicines have an assured market in all poor countries, they can also reach nations like India on the basis of compulsory licences.

Ahsan says the Bangladesh government is readying a 300-acre pharmaceutical park for manufacturing medicines from the intermediate level. "A lot of Indian companies have shown an interest in partnering with companies in Bangladesh to set up bulk drug units in this park," Ahsan added.

Nityananda Reddy, managing director of Aurobindo Pharma, and senior vice-president of the Bulk Drugs Manufacturers of India (BDMA), finds the emerging option attractive.

"Indian bulk drug companies are going to fetch good business as penultimate raw material suppliers to bulk drug firms in Bangladesh. It will be definitely attractive for all new products that cannot be made in India," he said.