EVALUATION OF PRICING STRATEGIES IN THE PHARMACEUTICAL SECTOR OF BANGLADESH

Abstract

The high price of pharmaceutical drugs remains a critical issue in Bangladesh, where a large portion of the population struggles to afford essential medicines. This study investigates the underlying causes of high drug prices, focusing on the pricing strategies of the Bangladeshi pharmaceutical sector. It analyzes financial data from 26 companies listed on the Dhaka Stock Exchange, representing over 76% of the market, to examine the relationship between cost of goods sold (COGS) and net income (NI). Quantitative methods, including Pearson correlation and multiple regression analysis using STATA 14, assess how COGS impacts profitability. In addition, stakeholder perspectives were collected through structured surveys using a Likert scale and analyzed through frequency distribution. The findings indicate a positive correlation between COGS and net profit, reflecting the dominance of cost-plus pricing models in the sector. This suggests that lowering production and supply chain costs could help reduce drug prices. However, the study also identifies key obstacles such as inefficient supply systems and unethical marketing practices, which further inflate prices and limit access. To address these challenges, the research recommends strengthening regulatory oversight, encouraging local production of active pharmaceutical ingredients (APIs), supporting contract manufacturing, and implementing cost-control policies. These steps aim to enhance affordability, accessibility, and long-term sustainability of essential medicines in Bangladesh.