If all goes as planned, Bangladesh is expected to graduate from the list of Least Developed Countries (LDCs) to that of developing nations in November 2026. While this transition will mark a major milestone and a source of national pride, it also brings economic challenges.
Once the LDC status is withdrawn, Bangladesh will lose several trade-related benefits, including exemptions under the World Trade Organization’s (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
The patent law for pharmaceuticals grants exclusive rights to companies that invent new drugs or technologies, allowing them to prevent others from producing, selling, or marketing those products without permission.
Currently, Bangladesh enjoys a TRIPS waiver as an LDC, which allows the domestic pharmaceutical industry to produce and sell patented drugs without paying royalties to the original patent holders. This exemption, valid until 2033, has helped Bangladesh’s pharmaceutical industry flourish—meeting nearly 98% of local demand and exporting to more than 150 countries.
However, once the patent protection becomes fully enforceable, local drug manufacturers may have to pay royalties to foreign companies to produce or market patented medicines. This would push up prices, and the export competitiveness of Bangladeshi pharmaceuticals could also suffer.
According to the Center for Policy Dialogue (CPD), the industry faces a major challenge once Bangladesh leaves LDC status. Patent restrictions will become tighter, and local producers will no longer enjoy the right to manufacture patented drugs without paying fees to the original developers. This, the CPD warns, could drive up drug prices for ordinary citizens.
CPD estimates that without TRIPS benefits, at least 20% of drugs currently produced in Bangladesh would fall under patent protection. As new medicines are developed, prices would rise further. The cost of producing insulin, for example, could increase eightfold once the waiver ends.
If the TRIPS exemptions expire, the prices of life-saving drugs for cancer, kidney, and heart diseases could rise dramatically—putting them beyond the reach of many patients.
Industry experts say higher production costs will intensify competition in the local market. Large pharmaceutical firms may withstand the impact, but small and medium-sized companies could face serious difficulties, possibly leading to shortages.
To avoid a crisis, industry insiders recommend registering all patent-protected drugs with the Directorate General of Drug Administration (DGDA) before Bangladesh’s graduation. If completed before November 2026, this could prevent foreign companies from later claiming exclusive rights.
Professor Dr. Syed Abdul Hamid of Dhaka University’s Institute of Health Economics said there would be no problem with generic drugs already registered with the DGDA. However, for drugs that have not yet been registered or are newly introduced after 2026, manufacturers would have to pay royalties.
He estimated that the price of new medicines could rise by 50% to 100%. “Companies are already registering new drugs as generics, even if they’re not yet in production,” he said. “But the challenge is that new diseases and drug types continue to emerge. After 2026, patents will apply to these new drugs.”
Regarding exports, Dr Hamid said the pharmaceutical export market is highly competitive. “Our registered products will not face much impact, but new drugs will cost more to produce due to patent laws. Buyers won’t pay higher prices—if India sells a drug for $10, we cannot sell it for $11,” he said. “We will lose competitiveness in exports.”
Dhaka University former pro-vice chancellor and ex-dean of the Faculty of Pharmacy Professor Sitesh Chandra Bachar told Banglanews that Bangladesh’s TRIPS privileges will end in November 2026, after which the country will no longer enjoy LDC exemptions. “The patent waiver for existing and upcoming drugs will end, covering roughly 5% to 10% of all medicines,” he said.
“Bangladesh produces about 1,700 generic medicines and meets 98% of domestic demand—an achievement few countries, not even the United States, can claim. Yet beneath this success lies a looming shadow,” he warned.
Professor Sitesh Chandra Bachar said 600 to 700 new molecular drugs are already listed for registration. “If we can register these by November 2025—or even by November 2026, depending on interpretation—we can remain safe for the next decade. But that has not yet happened,” he added.
He stressed that biosimilar drugs, vaccines, and biologics are now among the most used medicines. “If we fail to register insulin, vaccines, and anti-cancer drugs in time, we will face major problems later,” he said. “If these TRIPS-related issues are not resolved during the transition period, the consequences could be severe.”
He also warned that after 2026, Bangladesh’s local production capacity could drop from 98% to around 90%, forcing the country to import the remaining 10%—which will be much costlier.
To address the problem, Professor Sitesh Chandra Bachar said Bangladesh must strongly appeal to the World Health Organization (WHO) for an extension of the waiver period. “We supply low-cost medicines to many poor nations. If we lose the ability to produce drugs cheaply, we won’t be able to continue that support. We must negotiate with the WTO for an extended transition period,” he said, adding that most ministries lack technical understanding of pharmaceutical TRIPS issues.
Abdul Muktadir, president of the Bangladesh Association of Pharmaceutical Industries and chairman and managing director of Incepta Pharmaceuticals Ltd, echoed similar concerns. “We’ve repeatedly warned that after LDC graduation, we will not be able to produce patented drugs unless under license or through imports. That will drive prices up sharply,” he said.
When asked how much prices might rise, Muktadir replied, “An injection we sell for 10,000 taka now is sold abroad for 200,000 taka — a twentyfold difference. We sell hepatitis C drugs for $7, while they sell for $1,000. Prices of new patented drugs will increase many times over.”
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