Drugmakers seek incentives, stable policies to go public

Leaders of the rapidly-growing pharmaceutical sector have pressed for greater incentives and policy stability to encourage drug manufacturers to go public.

The suggestion came up in a meeting betweenrepresentatives of the Dhaka Stock Exchange (DSE) and the Bangladesh Association of Pharmaceutical Industries (BAPI) executive committee on Tuesday. A press release in this regard was issued on Wednesday.

The DSE delegation was led by Chairman Mominul Islam, while the BAPI executive committee was headed by President Abdul Muktadir, also the managing director of Incepta Pharmaceuticals Ltd.

Mr Muktadir said market liquidity, policy stability, and a rational tax framework are imperative to make the market attractive for good companies.

His organisation - non-listed Incepta Pharmaceuticals -- is believed to be the second largest pharmaceutical company after listed Square Pharmaceuticals in Bangladesh, with 11.99 per cent market share.

Currently, there are 257 licensed and operational pharmaceutical companies in the country, exporting medicines to more than 150 countries.The sector contributes significantly to the national economy, accounting for 1.83 per cent of the GDP.

The government must ensure consistency in investment-related regulations and clearly communicate any future policy changes for bringing non-listed drug manufacturers to the secondary market, said MrMuktadir. Stable and predictable policies are essential to rebuilding trust of investors and entrepreneurs.

Muktadir also pointed out that almost same corporate tax rates for public and private companies have reduced incentives for stock market listing. Listed companies should enjoy tax benefits, he added.

Mr Muktadir also said that when a company becomes publicly listed, shareholders gain transparency regarding ownership, and the broader public can participate in its growth. That not only benefits investors but also contributes significantly to the country's economic development.

DSE Chairman Mominul Islam stated that the prime bourse had been undergoing a transformational journey to make the capital market more effective, inclusive, and growth-oriented. The Dhaka Stock Exchange aims to become one of the main sources of long-term financing, he added.

Acknowledging past irregularities and inefficiencies that hindered the market's growth, he mentioned that policymakers now recognize the need to move away from a bank-dependent economy toward a more balanced financial system.

Mr Islam also announced that the DSE hadtaken steps to accelerate the IPO approval process-particularly for blue-chip companies, whose applications will now be processed within two months. Additionally, the DSE is introducing Central Information Upload System to enhance transparency and data accessibility.

As many as 34 pharmaceutical and chemical companies are currently listed on the DSE, with Square Pharmaceuticals being the largest by market capitalisation.

Companies of all sizes can now list on the main board, SME board, or alternative trading board (ATB), with the ATB being particularly suitable for small and emerging entrepreneurs.

"We are fully committed," Mr Islam said, "to building a transparent, efficient, and vibrant capital market that contributes meaningfully to sustainable economic growth."

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