Patented drug prices may soar after LDC graduation

Prices of some patented medicines may rise by 10 to 30 times as Bangladesh will no longer enjoy a waiver from complying with intellectual property rights after its graduation from a Least Developed Country (LDC) to a developing country, said a noted economist yesterday.

In addition, many small and medium firms may risk closure for failing to compete after the graduation, said Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), at a debate on Bangladesh's capacity to meet the challenges of graduation.

The Debate for Democracy (DFD) organised the event at the Bangladesh Film Development Corporation, with DFD Chairman Hassan Ahamed Chowdhury Kiron chairing the session.

Bangladesh is scheduled to graduate from the LDC category in November next year. However, businesses have been urging the government to take steps to delay graduation by up to six years so they can better prepare for the challenges of losing duty-free market access in major destinations such as the European Union bloc.

Rahman said the country should remain prepared even if it applies for an extension.

"We have to focus on increasing competitiveness, technological development, productivity growth, establishing national single window systems to facilitate trade, and reducing lead time to meet the challenges after graduation," he said.

He added that boosting investment is vital.

"Investors seek the assurance of a stable government. Therefore, a good election held on time will bring back stability to the country," he said.

Rahman further stressed that producing raw materials for medicines at the Active Pharmaceutical Ingredient (API) park is crucial for local drug makers to withstand post-graduation challenges. However, progress at the park, initiated in 2012, has been very sluggish.

He also highlighted the need to restore discipline in the financial sector. He said the actual amount of default loans is Tk 500,000 crore, although the previous government reported the figure at Tk 122,000 crore.