AKS Khan Pharmacy secures Tk152cr investment from Danish Investment Fund
The deal, aimed at expanding quality healthcare, was signed with AKS Khan Pharmaceuticals, said a press release
AKS Khan Pharmaceuticals (AKPL), a leading chain pharmacy operator in the country, has secured $12.5 million or over Tk152 crore in equity investment from the Danish government's development finance institution, the Investment Fund for Developing Countries (IFU).
The investment will help the company expand its nationwide network of self-run model pharmacies from 30 to 100 by mid-2026, according to AKPL Chief Operating Officer Rokeya Sultana.
Moreover, the company aims to build 30 new full-fledged modern diagnostic centres and medical clinics with home diagnostics services and specialist doctor consultation over the next 18 months.
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The investment is expected to benefit 80 lakh people annually till 2029, improving access to affordable and high-quality healthcare for underserved communities, according to a press statement issued by IFU on Wednesday.
Samanzar Khan, managing director and founder of AKPL, said, "Our aim is to reach every corner of Bangladesh with authentic affordable medicines and quality diagnostics. This investment is not just a boost of finance, it's a boost of hope for the new Bangladesh."
The expansion is crucial for ensuring that underserved patients of Bangladesh receive improved access to quality healthcare, he said.
"We will be ensuring international standard healthcare – authentic verified medicines, a deep focus on patient safety, and empathy training for our doctors," he added.
IFU CEO Lars Bo Bertram said, "AKPL's pharmacy-first primary care model, combined with their comprehensive diagnostic solutions, will extend quality healthcare services to millions more patients."
Alongside its impacts, IFU "views this investment as financially robust, promising returns over time," he said.
This is IFU's second largest investment in Bangladesh following the one in Karnaphuli Fertilizer Company Limited (KAFCO) back in the 1990s, according to investment bank CAL Bangladesh, the sell side advisor of the AKPL-IFU deal.
CAL Bangladesh is a part of Sri Lanka-based frontier market investment bank CAL Group.
Its country head, Deshan Pushparajah, said this transaction can serve as a template for many other businesses seeking investment from development financiers as CAL was behind many such deals in Sri Lanka.
IFU, an impact investor since 1967, invested around €3.6 billion in over 1,300 companies in more than 100 countries.
IFU started investments in Bangladesh in 1986 with PVC pipe maker Wavin, followed by chewing gum producer Dandy, fertiliser producer KAFCO, three textile companies and a fishing gear manufacturer SRL Cosmos Trawl.
Bangladesh's pharmaceuticals and primary healthcare market is expected to grow to $11 billion by 2030 with a double-digit annual growth. This includes a $5-6 billion market for medicines, around $2.5 billion for medical tests and diagnostics, and over $1 billion market for outpatient consultation, according to CAL.
A rise in purchasing power has let retail pharmacies grow by a-fourth to 1.55 lakh in 2020 in a matter of just three years. With rapid urbanisation, the country now boasts over 800 model pharmacies as people look for safer and better regulated products and services.
AKPL, a subsidiary of the decades-old AK Khan Group, entered the pharmacy business with its own outlets, differentiating itself from pharmacy chain pioneers like Lazz Pharma, which primarily operates through franchises.
The United Group, Green Delta and several other groups are also increasing their efforts in this sector.
