Bangladesh’s pharmaceutical sector is poised for significant expansion, but the industry’s growth is increasingly dependent on access to capital particularly via IPOs, bond markets, and foreign investment, a development highlighted in a recent report. Despite a market nearing $3.5 billion, only 19 of around 200 pharma companies are listed on the stock exchange, leaving most reliant on traditional bank financing. Industry leaders say access to public equity or alternative funding is crucial for scaling capacity and entering global markets. Bangladesh Investment Development Authority forecasts a pharma market size of $6 billion by the end of the year, driven by rising incomes, demographic shifts, and export potential. In the fiscal year 2023–24, the sector received $123.8 million in foreign direct investment, a significant increase from the $44 million recorded in the fiscal year 2021–22. Yet, this remains modest compared to global pharmaceutical investment flows worth over $1.4 trillion annually. Only four pharma firms have issued IPOs in recent years, collectively raising just Tk 250 crore in public equity. While stock listings offer cost benefits, listed companies can access financing around 4.5 percentage points cheaper than unlisted competitors; many firms are deterred by complex valuation systems and burdensome regulatory processes. Prime Bank Investment’s CEO, Syed M Omar Tayub, emphasised that Bangladesh’s pharma firms have not been prioritised under investment incentives, and macroeconomic challenges particularly in the power sector add to investors’ concerns. Experts recommend regulatory improvements to make the sector more attractive for public listing such as streamlined valuation methods, clearer compliance rules, and relaxed listing requirements. Enhanced capital access would enable firms to invest in capacity expansion, R&D, and export infrastructure all key to becoming globally competitive. The development of alternative financing tools like corporate bonds, preference shares, and private equity is also crucial. These mechanisms can serve companies that don’t want to list publicly, providing flexible capital without full board-level oversight. Industry insiders agree: stronger funding channels can reduce dependence on bank debt, lower production costs, and support investments needed to meet world-class manufacturing standards. This gives Bangladesh a better chance to retain domestic pharmaceutical value rather than exporting earnings abroad. To sum up, the growth of Bangladesh’s pharmaceutical industry depends on accessing funding. With improved regulatory support, incentives for public offerings, and the development of diversified financing avenues, local drug makers can scale up manufacturing, accelerate exports, and strengthen the nation’s position in global health markets.
