Square Pharma's export up 22pc in FY24, as it diversifies markets, products

Square Pharmaceuticals registered a 22.4 per cent year-on-year export growth in FY24, riding on a higher demand for its products in the global market.

The country's largest drug manufacturer's export revenue stood at Tk 2.39 billion in FY24, up from Tk 1.96 billion the year before, according to its annual report published recently.

"Square Pharma keeps growing every year in both local and export markets, driven by faith in their products," said Akramul Alam, head of research at Royal Capital.

The company's ability to produce high-quality generic medicines at relatively lower costs has made it competitive in the global market, he added.

Square Pharma invests heavily every year in research and development to improve existing products, reduce costs, and introduce new products. In FY24 alone, the company added 39 new products, according to the annual report.

"All of which have received positive feedback from medical experts and consumers," reads the report.

With its global footprint growing, Square Pharma is on a path to become an important global player in drug manufacturing. People's trust in the company and its unwavering commitment to maintaining quality and persistent leadership position in the domestic market since 1985 paved the way for its growth beyond the border.

Square Pharma pioneered the export of medicines in 1987, starting with antibiotics and a few other products. It has supplied products to well-regulated markets, such as the US and the EU nations.

Currently, the company exports high-quality generic medicines to more than 40 countries and strives to expand its presence in the global market.

The drug maker obtained approval from the UK Medicines and Healthcare Products Regulatory Agency in 2007 and from the US Food and Drug Administration in 2009.

Square Pharma emphasizes quality maintenance across its products, processes, and services, adhering to WHO GMP standards.

"We have incorporated modern technologies including machine learning, artificial intelligence, and biotechnology to fortify our foothold both in domestic and global markets," the company said in its latest annual report.

Export expansion through subsidiaries

The company is strategically expanding its presence in the international markets and diversifying its operations through subsidiaries and associate companies.

The state-of-the-art manufacturing facility "Square Lifesciences Ltd.", a subsidiary of the company situated at Hemayetpur in Pabna, started exporting drugs to some markets and completed regulatory inspection successfully.

"This will also have a significant contribution to Square's export revenue earnings in the near future," said the company in its annual report.

The company entered into the Philippine market last year by setting up a subsidiary --- Samson Pharma Inc, Philippines, as the market was deemed as a potential export destination having high demand for medicines.

The subsidiary is engaged in marketing and distributing pharmaceutical products incorporated in the Philippines.

Muhammad Zahangir Alam, executive director for finance and strategy at Square Pharma, earlier said the Philippines meets half of its medicine requirement through imports.

Last year, Square Pharma also received approval of the National Health Surveillance Agency of Brazil, which enabled it to step into Latin markets.

Having begun exporting medicines to Kenya in 2012, Square Pharma set up a plant in Kenya Export Processing Zone in Nairobi in 2018, in a pioneering move to manufacture medicines abroad. The plant started commercial operation in January last year.

The company's export growth accelerated recently as the Covid pandemic heightened the importance of attention to healthcare.

According to the Export Promotion Bauru (EPB), Bangladesh earned $205.48 million from exporting pharmaceutical products in FY24, a 17 per cent increase from the year before.

In the first five months of FY25, medicine exports grew 13 per cent year-on-year to $92.58 million through November this year.

Annual Performance

Square Pharma made a record profit of Tk 20.93 billion in FY24, driven by record sales.

Its annual revenue was up 15.5 per cent to Tk 70.10 billion in FY24, compared to the previous year.

Based on the record profit, the board declared the highest-ever cash dividend of 110 per cent for FY24.

The drug maker, which holds a market share of more than 17.32 per cent in FY24, increased from about 17 per cent a year ago, seeks to further bolster its position in the domestic market.

Square Pharma is considered one of the best performing blue-chip stocks, and is the third largest company in terms of market cap.

The Compound Annual Growth Rate (CAGR) of Bangladesh's pharmaceuticals sector has shown an impressive growth over the years.

As of estimates leading up to FY24, the sector has been experiencing a CAGR of approximately 9 per cent in the past five years while Square Pharma's CAGR is 10.39 per cent.

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