Bangladesh Outpaces India in Weight-Loss Drug Exports
Bangladesh is making significant strides in the pharmaceutical sector, particularly in the export of weight-loss drugs like semaglutide. This trend poses a competitive challenge to Indian pharmaceutical companies, which are currently gearing up to launch their generic versions of the drug. Dr Reddy's Laboratories and Sun Pharmaceutical Industries have received permission from the Delhi High Court to manufacture and export this generic drug to countries that do not hold patents. However, they are barred from selling it in India until March 2026.
The advantage lies with Bangladesh, which, because of its status as a 'least-developed country' under World Trade Organization (WTO) agreements, is exempt from full patent exclusivity for pharmaceutical products. This exemption allows Bangladeshi firms to reverse-engineer and produce patented drugs until 2030, a practice India used until it signed the WTO agreement in 2005. Consequently, for over two years, Bangladesh has flooded various markets with low-cost semaglutide.
Experts suggest that while Indian companies are eager to capitalize on this lucrative market, they will face tough competition from Bangladesh. The latter has already established a foothold in non-patented regions, exporting semaglutide to countries that do not enforce strict patent regulations. Four out of seven manufacturers in Bangladesh are actively exporting this drug, with Beximco and Ziska Pharmaceuticals being the largest players.
Dr Reddy's and Sun Pharma are investing heavily in their operations, with Dr Reddy's reportedly spending ₹1,000 crore on manufacturing. They aim to launch semaglutide in at least 87 countries next year, including markets where patents are expiring. However, brand-building will be crucial as they enter these new markets, especially since many patients and healthcare providers prioritize brand trust over price.
In contrast, Bangladesh has already made a name for itself by manufacturing and exporting semaglutide, with annual sales growing significantly. The country has also begun producing tirzepatide, another weight-loss drug, which has become extremely popular locally. The rapid growth of tirzepatide sales indicates a strong demand that could challenge Indian products in the future.
Despite India's larger pharmaceutical export market, estimated at $30.47 billion for FY25, the advantages held by Bangladesh, such as lower labor costs and established reverse-engineering capabilities, could lead to increased competition. Moreover, with India’s strong regulatory framework and vast domestic market, Indian companies still hold potential advantages, particularly in more regulated markets.
As the competition heats up, it remains to be seen how Indian pharmaceutical companies will navigate these challenges and whether they can leverage their strengths to maintain a foothold in the global market.
