When many businesses are struggling to run their companies for want of working capital in the time of Covid-19 pandemic, Square Pharmaceuticals is a different case that is sitting on a huge cash balance.
The drug maker, which holds almost one-fifth of the nearly $3 billion local market, has over Tk 4,000 crore cash in its hands and is denying bank loans, according to company insiders.
Company officials said Square is getting ready to start trial production in its Kenya subsidiary from July this year and will begin export to the US market with the newly approved ANDA for Valsartan oral drug, which would boost its business further.
Square Pharma, which has the highest profitability in the industry with more than 30 percent net profit margin, has emerged in multiple financial analysis that it would do better in the coming years.
“The pharmaceuticals industry of Bangladesh has historically maintained a sustainable growth rate and we expect the industry to grow 13-14 percent in the next five years. Being the market leader, Square is likely to follow a similar market trend,” said an analysis of IDLC Investments.
Net profits of the company are also increasing steadily every year and the figure shot up to over Tk 1,200 crore last year.
The drug maker has also been paying off its shareholders good dividends for years.
According to Dhaka Stock Exchange data, Square Pharmaceuticals gave its shareholders a cash dividend of 47 percent and 5 percent stock dividend for the 2019-20 financial year that ended on June 30, 2020.
The company has been offering over 40 percent dividends for the past several years, according to DSE data.
“Tireless work and dedication of our staff have made Square a strong company,” Tapan Chowdhury, managing director of Square Pharmaceuticals, told the Business Insider Bangladesh.
Chowdhury said they are proud that their company is serving the people and meeting the demand for medicines. He also said their medicines are being exported to various countries.
“No one will ever lose by investing in our company,” he said.
Midway News Team
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