Indo-Bangla Pharma signs deal with Afghan firm to export medicines
Before the DSE issued a query to the company, the share price of Indo-Bangla Pharmaceuticals had surged by 55%, rising from Tk9.1 on 22 June to Tk14.1 within 12 trading days
Indo-Bangla Pharmaceuticals, a listed company on the stock exchanges, has signed a memorandum of understanding (MoU) with Salar Yousafzai Pharma, an Afghanistan-based firm, to export pharmaceutical products to the Afghan market.
A disclosure regarding the deal was published on the stock exchanges today (9 July) through the Dhaka Stock Exchange (DSE), a day after the company responded that there was no price-sensitive information (PSI) related to the recent surge in its share price.
Before the DSE issued a query to the company, the share price of Indo-Bangla Pharmaceuticals had surged by 55%, rising from Tk9.1 on 22 June to Tk14.1 within 12 trading days.
As per disclosure, Salar Yousafzai Pharma will act as the sole agent in Afghanistan. The tenure of the MoU is valid for 15 years from 2025 to 2040, and renewable upon mutual agreement.
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The minimum order value will be $1.5 lakh per shipment, with regular exports plan, and payment terms 40% in advance TT, 60% pre-shipment. The exports will be made on a Free on Board (FOB) basis from Chattogram Port, meaning the buyer will bear the shipping costs and risks once the goods are loaded onto the vessel.
The company also said this strategic collaboration is expected to strengthen the Company's financial position through boosting export revenue, strengthening foreign currency earnings, and supporting long-term business growth, thereby enhancing shareholder value.
According to its financials reports, the company's revenue dropped by 53% to Tk7.69 crore in the first nine months of 2024-25 fiscal during the July to March quarter.
It incurred a loss of Tk1.97 crore with per share loss of Tk0.17 for FY25.
In FY24, it had incurred a loss of Tk4.09 crore with per share loss of Tk0.35, and paid 0.1% cash dividend for its shareholders.
The pharmaceutical firm got listed on the stock exchange in 2018. As of June 2024, sponsor-directors held 24.43% shares, institutional investors 22.74% and the general shareholders held 52.83% shares of the company.
