Renata puts footprint into Aussie pharma market

Renata Limited – one of the leading drugmakers in the country – has put its footprints into the Australian pharmaceutical market for the first time.

As part of its global market strategy, the drug manufacturer last week entered into an agreement with Nova Pharmaceuticals Australasia Pty Ltd to export contraceptive pills to the country.

Renata reports that it has received approval from the Therapeutic Goods Administration, Australia's government authority responsible for evaluating, assessing, and monitoring therapeutic goods.

The approval covers the supply of Levonorgestrel 1.5mg products under the name Novella-1 in the Australian market. The contraceptive pill will be distributed through Nova Pharmaceuticals, with the export of products expected to commence soon.

According to Company Secretary Md Jubayer Alam, the introduction of Novella-1 in the Australian market marks a significant milestone in the company's global outreach.

Nova Pharmaceuticals Australasia Pty, founded in 2003 in Sydney, is a privately owned and innovative company. It has been a leading supplier of medicinal products to pharmacies and supermarkets (Coles, Woolworths, Aldi, and Metcash) in the country for the past 18 years, as stated on its website.

Md Jubayer Alam told The Business Standard, "With Nova's proven expertise and widespread market presence, we are confident that Novella-1 will reach a broad and diverse audience, ensuring widespread accessibility and impact in the Australian market."

"The potent product, Novella-1, stems from Renata's state-of-the-art therapeutic goods administration (TGA)-approved facility, reflecting our unwavering commitment to quality," he added.

Jubayer Alam further mentioned, "Currently, in the Australian market, we are working with seven molecules, and we have already filed for three of them and received approval for one."

"In the next few years, with the registration of all the listed molecules, we see a significant business opportunity in the Australian market with a value of $4-5 million or more," he added.

According to its annual report, Renata is presently exporting its products to 47 countries, with another two countries in the process. A year ago, Renata exported its products to 25 countries.

Renata Limited, originally founded in 1972 as Pfizer Laboratories (Bangladesh), has evolved into a significant player in both domestic and international markets.

Renata manufactures a diverse range of pharmaceutical products, encompassing antibiotics, anti-inflammatories, analgesics, vitamins, neurological products, anti-diabetics, and anti-cancer products, among others.

In the fiscal 2022-23, Renata reported a revenue of Tk3,297 crore, marking a 6.12% year-on-year increase from Tk3,107 crore.

The major export destinations include Denmark, Myanmar, Pakistan, Sri Lanka, Ireland, and the United Kingdom, constituting 50% of its exports, with an additional 11.7% of shipments to various African countries, according to its annual report for the fiscal 2022-23.

While the total pharmaceutical industry exports from Bangladesh experienced a 7% decline to $175.42 million in FY23 from $188.78 million in FY22, Renata sustained growth, registering a notable 34.5% rise in exports in terms of the US dollar.

This demonstrates an increase in its share of pharmaceutical exports from 7.45% in FY22 to 10.78% in FY23. However, as part of their strategic business plan, company officials opted not to disclose the specific amount of exports.

Renata remains among the top five pharmaceutical companies in Bangladesh, holding a 7% market share in 2023.

Among the 671 pharmaceutical products, Renata's top 20 products consistently contribute to 72% of pharmaceutical sales. Furthermore, the introduction of new products targeting non-communicable diseases is playing a significant role in the company's overall growth.

In the animal health sector, Renata maintains its position as the market leader, experiencing a growth of 11.4%, surpassing the market growth of 9.09% in 2023.

However, in FY23, the company witnessed a 54.6% decline in net profit, amounting to Tk232 crore.

The reduction in profitability can be attributed to various external factors, including an increase in raw material prices and hikes in utility costs.

Last month, anticipating favourable business prospects, Renata made a strategic decision to enter the diagnostic industry.

It has identified a prime location on Eskaton Garden Road in Dhaka to set up cutting-edge diagnostic laboratories.

Renata's primary focus has traditionally been on the production of human pharmaceuticals and animal health products.

However, recognising the evolving landscape of the healthcare industry, the drugmaker is diversifying its portfolio by delving into the diagnostic sector.

Renata officials emphasised that this expansion aligns with the company's forward-thinking approach and long-term vision.

In a stock exchange filing, the company announced that its board of directors has approved the acquisition of 25.32 decimals of land at a cost of Tk36.33 crore, excluding registration and incidental expenses.