Navana Pharma to go public to meet growing demand
The present board took over the company in October 2020
Navana Pharmaceuticals Ltd wants to raise Tk75 crore from the capital market for its business expansion to meet the growing demand in both the local and international markets.
It will issue an initial public offering (IPO) under the book-building method.
On Tuesday, the company arranged a roadshow to introduce its business to institutional investors.
The drugmaker will use Tk23.24 crore for a new building for general production, Tk9.73 crore for a new utility and engineering building, Tk17.85 crore for the refurbishment of the cephalosporin unit of the company.
Keep updated, follow The Business Standard's Google news channel
Navana Pharmaceuticals, which was a concern of Islam Group, was incorporated in Bangladesh in 1986.
The present board took over the company in October 2020 and since then, owners have been trying to move the business towards positivity.
Currently, Manzurul Islam, chairman of Islam Group, holds only 3% shares in the company.
The company operates its business under two divisions – veterinary and human health.
Veterinary Division manufactures and markets more than 123 high-quality medicine and feed supplements for different segments such as poultry, dairy, and aqua products.
On the other hand, the human health division produces more than 277 human drugs – tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, eye drops, creams and ointments.
The company, which employs around 3,000 people, sells its products in the domestic market and exports to 15 countries.
According to the audited financial report of fiscal 2020-21, its net profit stood at Tk20.23 crore, up from Tk13.74 crore in the previous fiscal year.
The revenue stood at Tk360.66 crore, which was Tk314.90 crore a year ago.
Its earnings per share stood Tk2.52, up from Tk1.71 in the previous year and the net asset value per share stood at Tk41.19.
Md Abu Hurayra, chief financial officer at the drugmaker, said, "The company is raising funds from the capital market to meet the growing demand. Now we are contract-manufacturing from other companies to meet the demand."
"If we can complete a new project, the capacity will almost be doubled," he added.
The factory of the company is situated at Rupganj, Narayanganj.
UCB Investment Ltd, Asian Tiger Capital Partners Investment Ltd, and EBL Investments Ltd are working as issue managers while AFC Capital Limited is working as the registrar of the issue.
The pharmaceutical industry has developed considerably in Bangladesh which was almost 100% dependent on foreign medicines in the post-independence period. But now the country's medicines are being exported to 180 countries across the world.
Local companies are now meeting 98% of the demands of the domestic market. They are now developing and producing a variety of complex and international standard medicines such as vaccines, medicines for heart and cancer diseases, and insulin.
According to IQVIA, an American multinational company serving the pharma industry, the country's pharmaceutical market surpassed Tk27,000 crore in 2020 with an annual growth of more than 10%.
Bangladeshi companies also export medicines worth around Tk1,500 crore per year. However, the top 10 companies in the country sell only about 71% of the country's total medicines.
According to the Export Promotion Bureau, the revenue from drug exports in the 2020-21 fiscal year was Tk1,433 crore.
In that year, the income growth in this sector was 24.50%. In fiscal 2019-20, medicines worth Tk1,153 crore were exported from Bangladesh.
