Square Pharma to start drug production in Kenya by January

Square Pharmaceuticals Ltd is going to be the first Bangladeshi company to produce medicines in a foreign country as it is scheduled to start manufacturing in Kenya by January 2022.

The trial operation will start in December this year.

As per the company's financial statement, the construction of the project began in 2019 and was initially scheduled to be completed by early 2021.

However, the global outbreak of Covid-19 impacted the construction work to a great extent.

Finally, Square completed the construction of its manufacturing plant in Nairobi, the Kenyan capital in September 2021 at a cost of Tk170 crore.

The pharma giant looks to get hold of the $30 million drug market in Kenya and five other East African countries – Tanzania, Rwanda, Burundi, Uganda, and South Sudan – and fulfil the unmet demands of medicines in those countries.

According to the company's 2017 disclosure on the Dhaka Stock Exchange, Square invested $20 million to set up a drug manufacturing plant in Kenya.

Square Pharma spent $8 million from its fund and the rest of the amount was arranged through a loan.

Square currently exports medicine to 42 countries, including 19 in Asia, 13 in Africa, three in Oceania, six in Central and South Americas, and the United Kingdom.

From July to September of the current fiscal year, the gross revenue of the company was Tk1,742 crore, which was Tk1,472 crore in the same period of the previous FY.

During the period, its total comprehensive income was Tk595 crore and earnings per share were Tk5.64.

As of 31 October 2021, the sponsors and directors jointly held 34.57% shares, institutions 14.03% shares, foreign investors 14.26% shares and the general public 37.14% shares in the company.

The last traded share price of the company at the Dhaka Stock Exchange was Tk217.20 on Monday.