Switzerland's Novartis AG is leaving Bangladesh after the western multinational pharmaceutical companies GlaxoSmithKline, Nuvista and Sanofi. As a result, India's Sun Pharmaceuticals remained the only foreign pharmaceutical company in the country.
In a press release, Radiant Pharma said, after nearly 50 years of operations, Novartis Bangladesh is selling its entire 60 percent stake to Radiant Pharmaceuticals. That is why the share purchase agreement was held today on Saturday. Representatives of both sides were present at the event. This agreement is expected to improve healthcare and spread innovative treatment methods.
The company is being managed by Novartis in joint venture with Bangladesh Chemical Industries Corporation (BCIC). After the departure of Novartis, Sun Pharma Bangladesh, a subsidiary of Indian Sun Pharma, will be the only foreign pharmaceutical company to have a local factory in Bangladesh.
Novartis AG started operations in Bangladesh in 1973. The company has worked in joint partnership with BCCICI. Known worldwide for quality of medicines and research activities. Their mission in Bangladesh was to provide high quality medicines and bring innovative solutions to the local health sector.
Novartis decided to exit Bangladesh as part of strategic realignment and changes in business structure of multinational companies around the world. The decision is believed to be due to the business environment, local competition and declining profitability.
According to analysts, multinational companies are lagging behind in the competition of local firms dominating the Bangladesh market and manufacturing low-cost drugs. Earlier, big companies like GlaxoSmithKline (GSK), Nuvista and Sanofi also left Bangladesh for the same reason.
The pharmaceutical industry in Bangladesh is now almost entirely under the control of local institutions. This sale agreement will usher in a new chapter in the Bangladeshi pharmaceutical industry. At present, domestic companies are ahead in technology and investment and are occupying the place of multinational companies.
Analysts feel that the departure of companies like Novartis may raise questions about Bangladesh's presence and investment structure in the international pharmaceutical industry. But local institutions are playing an active role in filling this gap.
The departure of Novartis may create new opportunities in the pharmaceutical industry of Bangladesh. Radiant Pharmaceuticals is already preparing to take over Novartis' local business. Besides, competition in the local market is expected to increase.
