IBN Sina Pharma to invest Tk10cr in API project

Publicly listed IBN Sina Pharmaceutical Industry Ltd has decided to invest Tk10 crore in its active pharmaceutical ingredients (API) project for capital machinery acquisition.

The drug maker is providing the fund as capital investment in the API project—located at the government's API Park in MunshiGanj, according to IBn Sina Pharma's disclosure on the Dhaka Stock Exchange (DSE) website.

Earlier, it already invested Tk25 crore in the project and after this new investment, the total amount will be Tk35 crore.

In 2019, IBN Sina Pharma started the API project by forming a subsidiary company named IBN Sina API Industry Limited. The drug maker owned 99.99% shares of the API company.

In its annual report for the fiscal 2021-22, IBN Sina Pharma said the demand for API products—mostly known as pharma raw materials—is eventually expanding in the domestic market as well as new export frontiers.

To facilitate supply of pharma raw materials and to reduce the dependency on importing API, timely action has been taken to keep pace with global shifting of the sector and implementing the government's API Park considering the impact of LDC graduation in the pharmaceutical sector, it added.

Kabir Hossain, company secretary at IBN Sina Pharma, told The Business Standard that the construction works of the API project have been advanced towards the final stage. Hopefully, production in the API plant will be started by next year. 

The company also said in the annual report, API is one of the priority projects of the company established to achieve basic raw materials support locally for company's own use and for extending API business at home and abroad for the national interest. But the project completion has been delayed for about two years due to Covid-19 pandemic.

Meanwhile, IBN Sina Pharma also decided to purchase lands worth Tk5.58 crore in Chattogram and Barisal to build its sales depot.

Last year, the company purchased a total of Tk20.39 crore worth of land for setting up sales depots.

IBN Sina Pharma had paid a 60% cash dividend for FY22, the highest since the fiscal 2008-09.

In FY22, the company's consolidated earnings per share (EPS) increased 24% to Tk19.39, from Tk15.66 in FY21.

In the first three quarters of FY23, its revenue grew by 3% to Tk663.89 crore from the same period a year ago.

During the period, its net profit also increased by 1.49% to Tk42 crore and the EPS stood at Tk13.52. Its shares closed at Tk286.60 each on Sunday at the DSE.