Navana Pharma to invest Tk145cr in new production unit

Navana Pharmaceuticals has decided to build a generic production unit by investing Tk145 crore, which will come from internal sources, bank loans and initial public offering fund, according to its disclosure.

"This will enhance the existing production capacity by around 1,000 million units per year," said the company.

Navana Pharmaceuticals raised Tk75 crore from the stock market under the book-building method of IPO in 2022. The company said they had already spent 71.31% of total IPO proceeds.

Now, the pharmaceutical company has decided to extend the timeframe of full utilisation of IPO proceeds to accommodate the proposed changes until September 2025.

The revised IPO fund utilisation plan is subject to approval of shareholders in its upcoming extraordinary general meeting scheduled for 2 May. The record date is on 2 April.

Navana Pharma posted an impressive 56% year-on-year growth in profit for July-December period of the fiscal year 2023-24.

The drug maker reported Tk22 crore profits in the six months of FY24 as against nearly Tk14 crore in the same period a year before.

The company's sales increased by 20% year-on-year to Tk328 crore in the first half of FY2024.

Incorporated in 1986 in Bangladesh, Navana Pharma produces both human and animal drugs. 

The veterinary division manufactures and markets more than 123 high-quality medicines and feed supplements for different segments including poultry, dairy, and aqua products.

Navana Pharma sells these products in the domestic and international markets. It exports products to 15 countries.

The company's stock price fell 2.81% to close at Tk90 on Thursday at the Dhaka bourse.