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Listed life-saving injectable producer Orion Infusion has planned to invest another Tk 205 million from its own funds to increase the production capacity of IV fluids by 30 per cent.
According to a disclosure on Monday, the company's revenue will go up by Tk 255 million after the implementation of the project, which is more than 30 per cent of the revenue earned in FY24.
The disclosure encouraged investors to bid up the stock of Orion Infusion by Tk 13.90 per share, or 3.71 per cent, to Tk 388.80 per share on the Dhaka Stock Exchange (DSE) on Monday.
That pushed the price-to-earnings (P/E) ratio further up to 208.81, while the sector's P/E is only 10.23, according to research website Amarstock.com.
Currently, the P/E of Orion Infusion is the second highest, just after Ambee Pharmaceuticals, among the listed pharmaceutical companies on the DSE.
Direct competitors of the company include Monicopharma Ltd., Popular Pharmaceuticals, Radiant Pharmaceuticals, Novo Healthcare & Pharma, Nippon Kayaku (local operations), and Opsonin Pharma in the manufacturing of IV fluids.
However, larger sectoral players - Square Pharma, Beximco Pharma, Incepta, Renata, and Opsonin - dominate national distribution, hospital contracts, and have scale advantages, which affect smaller companies like Orion Infusion.
The company disclosed that the board of directors recently approved a proposal to make a fresh investment, including working capital, for the expansion of the existing production line to meet the growing demand for IV fluids.
It is going to commence construction work at its plant in Maikuli, Rupganj of Narayanganj, which is expected to be completed by December next year.
The expansion will boost the overall profitability of the company, it said, adding that the entire investment would be financed through internal sources.
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