Beacon Pharma delivers robust FY25 results on booming cancer drug sales

Beacon Pharmaceuticals posted an impressive 81 per cent year-on-year profit growth to Tk 947 million in FY25, driven by record sales and higher income from investment.

The company's expanded distribution network also played a role in achieving the 17 per cent year-on-year revenue growth to Tk 12.54 billion in the year, the highest ever since its 2010 listing, according to its earnings note.

"Sales of the oncology and antibiotics segments increased significantly, leading to higher revenue as well as profit growth," said an official of the company, requesting not to be named.

Beacon Pharma stands as a pioneer in manufacturing and marketing cancer drugs in the country, holding a 75 per cent market share, he claimed.

The company's operating income soared 29 per cent year-on-year to Tk 2.40 billion in FY25.

Alongside higher sales, other income, particularly higher investment income from bank deposits, also continued to boost the bottom-line growth, according to its financial statements.

Beacon Pharma's other income almost doubled to Tk 275 million during the year compared to the previous year, owing to rising deposit rates.

Based on the profit growth, the company's board of directors has declared a 21 per cent cash dividend only for general shareholders. This is also the highest cash dividend declaration since the company's listing on the stock exchanges.

The company's total number of shares is 231 million, while general shareholders, including institutional investors, hold a 60.14 per cent stake or 138.92 million shares.

Investors will get Tk 2.10 per share as a cash dividend, meaning general shareholders will get Tk 292 million in cash dividends for the year out of the annual income of Tk 947 million in FY25.

The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, stood at Tk 6.93 in FY25, which was Tk 0.78 in the negative in the previous year.

The company will hold its annual general meeting on December 23 and the record date for the entitlement of dividends is set for November 10.

One of the leading drug manufacturers in Bangladesh, Beacon Pharma specializes in high-quality generics, particularly in oncology and biotech medicines.

The company offers a wide range of products, including more than 200 general and 70 oncology medications, according to its website.

Beacon is also exporting products to more than 130 countries and has a reputation for innovative products and world-class manufacturing facilities designed to meet international standards.

The country's growing population, coupled with rising awareness of healthcare needs, has amplified the demand for medicines, particularly for chronic diseases, industry insiders say.

The aftermath of the COVID-19 pandemic has further accentuated the importance of healthcare, leading to increased focus on medical preparedness and infrastructure, which in turn has positively impacted the pharmaceutical industry.

Meanwhile, following the earnings disclosure, the stock of Beacon Pharma inched up by 0.09 per cent to Tk 108.1 per share on Thursday on the Dhaka Stock Exchange.

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