Medicine prices will not rise because of Bangladesh's graduation from the group of least developing countries (LDCs) to a developing nation in 2026, but structural challenges in the health sector and rising energy costs may have an impact, a study found.
Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), shared this while presenting the findings of a study conducted by his organisation during a seminar at the Sheraton Dhaka in the capital yesterday.
M Abu Eusuf, executive director of RAPID, moderated the seminar, which was jointly organised by Rapid and UK International Development.
Furthermore, Razzaque said different provisions were retained while formulating the patent act of Bangladesh in 2023 to address any upward trend in medicine prices after graduation.
Razzaque added that the benefits afforded by the new patent act are compatible with the rules of the World Trade Organisation.
"Medicines that are imported now may also be imported in the post-LDC period," he said.
In accordance with the new patent law and the Trade Related Aspects of Intellectual Property Rights (TRIPs) Agreement, Bangladesh, as an LDC, enjoys a pharmaceuticals waiver.
This allows the country to produce generic versions of patented drugs, significantly reducing the cost of medications.
However, if any new medicine is patented abroad after Bangladesh's graduation from LDC status, the companies will have to pay a 4 percent royalty to the patent holder.
"This may increase the prices of only these kinds of medicines by 2 percent to 4 percent," Razzaque said.
The researcher also said the government will be unable to provide incentives for medicine exports after graduation, which may impact the export of pharmaceuticals.
He suggested formulating a competitive drug policy and increasing public investment in the health sector.
He also called for making the Active Pharmaceuticals Ingredients Park, which has been under construction for many years, operational quickly.
"A form of micro health insurance may reduce the burden of health costs for the poor," he added.
The chief adviser's Special Envoy for International Affairs Lutfey Siddiqi said any decision regarding LDC graduation needs to be carefully examined through a cost-benefit analysis based on data and research.
"The decision will not be rushed," he added.
Abdur Rahim Khan, additional secretary to the commerce ministry, said the prices of at least 50 medicines increased by 10 percent to 70 percent in domestic markets recently.
