The drug regulatory authority has temporarily banned the production and marketing of the publicly listed company Indo-Bangla Pharmaceuticals Limited.
On Tuesday, the company disclosed the information on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) websites.
Company Secretary Mohi Uddin told The Business Standard, "Due to personal problems of the company authorities, the drug administration has imposed a temporary ban on our production and marketing."
"We hope the problems will be resolved within a short time," he added.
As per information of the company, Indo-Bangla on 7 March received a letter from the Directorate General of Drug Administration (DGDA), banning the production and marketing of the company for a temporary period.
The company has instantly filed a writ petition against the order.
Acting upon the petition, the High Court on 14 March 2021 issued a rule asking the DGDA to explain why the ban on production and market should not be declared illegal.
The court fixed 6 April for the next hearing.
Previously, the name of the company was Indo-Pak Pharmaceutical Works (IPW) but after independence, the government took control of the company which was inaugurated in 1954.
It was registered in Bangladesh under the privatisation act in the name of Indo-Bangla Pharmaceutical Works.
In 1982, the government sold the company which got listed on the stock exchanges in 2018.
The company is engaged in manufacturing and selling all kinds of medicines (excluding antibiotics), and medical preparation of drugs and chemicals (human health).
The company has applied for permission for the production and selling of veterinary medicine also.
In the last fiscal year, Indo-Bangla reported a profit of Tk15.62 crore, and the earnings per share (EPS) stood at Tk1.40.
The board of the company has recommended a 4.50% cash and 2% stock dividend for the shareholders.
In fiscal 2018-2019, the company posted a profit of Tk15.52 crore and EPS was Tk1.39. It paid an 11% – 2% cash and 9% stock – dividend.
In FY20, the revenue of the company was Tk86.60 crore, which is 16.935% higher than the previous fiscal year when the revenue was Tk74.07 crore.