Square Pharma set to launch factory in Kenya

[Isa Khan]

"However, it is now in the final stage of implementation despite the Covid-19 situation," said Samuel S Chowdhury, chairman of Square Pharmaceuticals, in the company's annual report for 2019-20.

"As the situation improves, the company will continue to avail every opportunity to further expand and join the club of multinational companies in Bangladesh," he added.

With the state-of-the-art machinery, Square Pharmaceuticals Kenya EPZ Ltd aims to fulfil the unmet demand for medicine in Kenya, Tanzania, Rwanda, Burundi, Uganda and South Sudan.

The total project cost is estimated to be $17 million and working capital is $3 million, as per the company's annual report.

Of this amount, $12 million will be financed by Square Pharmaceuticals as equity investment while the rest will be financed through loans.

"We have a meeting with the industry ministry of Kenya today because the plant is almost ready," Tapan Chowdhury, managing director of Square Pharmaceuticals, said yesterday.

Chowdhury made these comments at a virtual programme organised by the Centre for Policy Dialogue.

"We will hopefully be able to start manufacturing at the plant by July or August," he added.

This is a first for the country that, with permission from Bangladesh Bank, a local company is establishing a drug production facility abroad.

"This is a big step for Bangladesh," Chowdhury said.

In the Kenyan company, Square Pharmaceuticals holds 100 per cent nominal share capital of 80 crore Kenyan shillings (KSH) having 8 lakh shares of KSH 100 each (1 Kenyan shilling equals US$ 0.0093).

The principal activity of the company is to manufacture and sell generic pharmaceutical products in Kenya and a majority of the East African community.

Square Pharmaceuticals has obtained clearance from the Pharmacy and Poisons Board, Kenya for setting up the plant on the banks of the Athi River.

Trial production at the new facility is expected to begin on July 31 this year, the annual report said.

The company's net loss for the financial year that ended on June 30, 2020, is KSH 61.55 lakh and total accumulated loss is KSH 2 crore as it is yet to generate revenue while incurring administrative expenses and foreign exchange loss, it added.

Square Pharmaceuticals has 859 products. Of them, 637 are pharmaceuticals, 134 are agrovets and 36 are pesticides and so on.

The leading drug maker's export market covers over 43 countries. During 2019-20, the company's exports amounted to Tk 165 crore, which is around 11 per cent higher than that of the previous year.

Since 1985, Square Pharmaceuticals has held the top spot in Bangladesh's pharmaceuticals sector.

Square Pharma set to launch factory in Kenya

Square Pharmaceuticals will launch its production facility in Kenya within the next four months in a move that will considerably enhance the company’s earnings from East African nations.

www.thedailystar.net

 

[Isa Khan]

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.

Square Pharma to start drug production in Kenya by January

The company constructed a Tk170 crore manufacturing plant in Nairobi

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