Silva Pharmaceuticals Ltd is aiming to export drugs to the United States and the European Union markets. The company, listed with both the bourses, is building a new unit specifically for that purpose.
Company Secretary Md Iqbal Hossain told The Business Standard that they will set up the new unit in line with the regulations of the Good Manufacturing Practice.
"We are positive about entering the US and EU markets with products from the new unit. The unit will hopefully go into production by 2020," said Iqbal. He added that Silva Pharma will invest around Tk15 crore on the new plant.
The Good Manufacturing Practice (GMP) is a system for ensuring quality control standards for products. It has been jointly designed by the World Health Organization, the Food and Drug Administration of the US, and the European Union.
No drug is allowed into the US and EU markets without a GMP license.
Silva Pharma has recommended six percent cash dividend and five percent stock dividends for its stakeholders during the 2018-19 financial year.
Since the sponsors, directors and the Investment Corporation of Bangladesh will not take their cash dividends for the last accounting year, Silva will have Tk9 crore in its pocket to invest in the new unit.
The company also raised Tk30 crore through Initial Public Offerings (IPO) in 2018. The funds raised through the IPO is being invested in a pre-declared project in Noakhali.
The company now intends to build its new unit at the same site in Noakhali, at a cost of Tk4 crore.
Moreover, the pharma has a reserve of Tk72 crore, which may be used if required.
Silva Pharma entered the stock market in 2018, and posted a net profit of Tk15 crore in the 2018-19 fiscal year, while the Earnings Per Share (EPS) was Tk1.15.
Net profits of the company have jumped by 200 percent in the last five years. The closing price of Silva Pharma's shares was Tk17.40 on Thursday at the Dhaka Stock Exchange.
The maximum price of the company's shares shot up to Tk39.80.
Bangladesh's net volume of pharmaceuticals exports was Tk4 crore in 2010-11. This rose to Tk13 crore in the 2018-19 financial year. The growth in pharmaceuticals export registered a 225 percent rise in the last nine years.