Square to start drug production in Kenya by August
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
TUESDAY, MAY 17, 2022
TUESDAY, MAY 17, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Square to start drug production in Kenya by August

Pharma

Abbas Uddin Noyon
05 May, 2021, 11:00 pm
Last modified: 06 May, 2021, 12:23 pm

Related News

  • Square Pharma’s quarterly profit rise by 18%
  • Google to set up first Africa product development centre in Nairobi
  • Kenya's top court to issue final ruling on president's constitutional changes
  • 8 reasons Kenya should be on every Bangladeshi traveller’s bucket list
  • World's first malaria vaccine making inroads in western Kenya

Square to start drug production in Kenya by August

The pharma giant has already completed construction of its manufacturing plant in the Kenyan capital Nairobi at a cost of Tk170 crore

Abbas Uddin Noyon
05 May, 2021, 11:00 pm
Last modified: 06 May, 2021, 12:23 pm
Square to start drug production in Kenya by August

Square Pharmaceuticals Ltd is going to be the first Bangladeshi drugmaker to produce medicines in a foreign country as it starts manufacturing in Kenya by August this year.

The pharma giant has already completed construction of its manufacturing plant in the Kenyan capital Nairobi at a cost of Tk170 crore.

Square looks to get hold of the $30 million drug market in Kenya and five other East African countries – Tanzania, Rwanda, Burundi, Uganda and South Sudan – and fulfil the unmet demands of medicines in those countries.

All infrastructural work, including installation of all necessary equipment in the factory, is complete, Square Pharma Managing Director Tapan Chowdhury said at a webinar on Wednesday.

"Today [Wednesday] we had a meeting with the health minister of Kenya. We will be able to start production in mid-July or early August this year," Tapan said.

Company officials say they had a target to start production in the Kenyan factory in 2020. But, that did not happen as infrastructural work remained suspended for some time because of the pandemic. Now, all work has finished. Manufacturing will start soon after discussing with the Kenyan government.

As per the existing law of Bangladesh, no local company is allowed to transfer its capital to another country. But they can do so with the approval from the Bangladesh Bank.

The central bank has already given conditional approval to a number of companies to open factories abroad and transfer capital.

Among them, the DBL Group has set up a garment factory in Ethiopia, while BSRM built a steel plant in Kenya, and Akij Group acquired Robin Textile in Malaysia and invested in it.

Habibuzzaman, company secretary to Square Group, said Square Pharma was the first company to invest legally abroad with money from Bangladesh, thus opening up a new window of opportunities in the country's pharmaceutical sector.

"As a listed company, we reported our investment to stock exchanges. They will also be informed of our production launch. Our all preparations are over," he also said.

According to the company's 2017 disclosure on the Dhaka Stock Exchange, Square invested $20 million to set up a drug manufacturing plant in Kenya. Square Pharma spent $8 million from its own fund and the rest of the amount was arranged through a loan.

Square currently exports medicines to 42 countries, including 19 in Asia, 13 in Africa, three in Oceania, six in Central and South Americas, and the United Kingdom.

In the fiscal 2019-20, the company exported medicines amounting to Tk165 crore to different countries. It was the second highest earnings through medicine exports after Beximco's Tk235 crore. Square Pharma's export growth was 10.98% last year.

Square is the top pharmaceutical company in the country though it is the second largest drug exporter. At present, the company has about 17% share in the country's pharmaceutical market. Incepta, which stands second, has less than 10% stake in the local market.

When all businesses reeled under pandemic effects, Square Pharmaceuticals witnessed its sales grow by 18.68% to Tk5,293 crore last year.

According to the latest audited financial report for the fiscal 2019-20, the assets of Square Pharma,  which started its journey with only Tk20,000 in 1958, amount to Tk6,985 crore.

The late Samson H Chowdhury was the pioneer of Square Pharma. Tapan Chowdhury from Samson's third generation is currently its managing director.

Stock market performance

Square Pharma is one of the top-performing companies in the country's stock market. It is a company of investors' confidence and trust as it continues to give its shareholders dividends.

Square is one of the few blue-chip companies on the Dhaka Stock Exchange (DSE). Square Pharma has been included in the DS-30 index comprising the top 30 companies listed on the DSE.

According to stock exchange sources, Square Pharma was listed on the stock market in 1995. On Wednesday, the company's share price was Tk207 with a face value of Tk10 each. As per values of its shares, the company's market capital now stand at Tk18,348 crore.

Square Pharma gave a 52% dividend to its investors last year.

Bangladesh / Corporates / Top News

Square Pharmaceuticals Ltd / Drug production / Kenya

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Are banks only gainers from dollar crisis?
    Are banks only gainers from dollar crisis?
  • PK Halder wants to return home
    PK Halder wants to return home
  • Exporters for continuation of 0.5% source tax for 5 years 
    Exporters for continuation of 0.5% source tax for 5 years 

MOST VIEWED

  • Photo: Courtesy
    Four directors to buy 9 lakh Square Pharma shares
  • Sanofi Bangladesh renamed Synovia Pharma
    Sanofi Bangladesh renamed Synovia Pharma
  • Pharma on a Tk1 trillion journey
    Pharma on a Tk1 trillion journey
  • Beximco Pharmaceuticals Acquires Sanofi Bangladesh
    Beximco Pharma inks Sanofi acquisition deal
  • TBS Today: Pharmaceutical industry eyes on localisation of raw materials
    TBS Today: Pharmaceutical industry eyes on localisation of raw materials
  • Two Covid-19 drugs boost Beacon Pharma’s turnover, profits
    Two Covid-19 drugs boost Beacon Pharma’s turnover, profits

Related News

  • Square Pharma’s quarterly profit rise by 18%
  • Google to set up first Africa product development centre in Nairobi
  • Kenya's top court to issue final ruling on president's constitutional changes
  • 8 reasons Kenya should be on every Bangladeshi traveller’s bucket list
  • World's first malaria vaccine making inroads in western Kenya

Features

Bitcoin, by far the largest cryptocurrency, is a terrible substitute for government-issued money. Photo: Reuters

Crypto’s wild week offers a much-needed warning

11h | Panorama
Karst Stone Paper Journal: Write on indestructible stone paper

Karst Stone Paper Journal: Write on indestructible stone paper

12h | Brands
Pesky bugs do not stand a chance against this automatic indoor insect trap

Pesky bugs do not stand a chance against this automatic indoor insect trap

12h | Brands
Wazeenah: Turning furniture into a canvas

Wazeenah: Turning furniture into a canvas

12h | Brands

More Videos from TBS

Finland, Sweden decide to join NATO

Finland, Sweden decide to join NATO

3h | Videos
Where you can swim for Tk5

Where you can swim for Tk5

5h | Videos
Cultural activists pay tribute to Hassan Arif

Cultural activists pay tribute to Hassan Arif

8h | Videos
How PK Halder becomes a scamster

How PK Halder becomes a scamster

8h | Videos

Most Read

1
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

2
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

3
Impact of falling taka against US dollar
Banking

Taka losing more value as global currency market volatility persists

4
Govt tightens belt to relieve reserve
Economy

Govt tightens belt to relieve reserve

5
Union Capital asked to return Tk100cr FDR to BATBC 
Banking

Union Capital asked to return Tk100cr FDR to BATBC 

6
How Bangladesh can achieve edible oil self-sufficiency with local alternatives
Bazaar

How Bangladesh can achieve edible oil self-sufficiency with local alternatives

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab