Square Pharma to build new unit

Square Pharmaceuticals, one of the largest pharmaceutical companies in Bangladesh, plans to set up its third new production unit, to meet local and export demand for medicine.

The new unit will be built in two phases in the next seven years to manufacture three types of products -- solid doses form, large volume parenteral (LVP) and special products, such as anticancer drugs.

The cost of the project has been estimated at Tk 514 crore -- Tk 360 crore for the first phase which targets the completion by December 2012, and Tk 154 crore for the second phase to be completed by June 2016 -- according to the company's disclosure, posted on the Dhaka Stock Exchange website yesterday.

Square Pharma, which is listed on both the Dhaka and Chittagong stock exchanges, expects to produce 5 billion tablets, 1.5 billion capsules, 60 million injections and 11 million pieces LVP in the first phase.

In the second phase, the company targets production of 4.5 billion pieces tablets, 1.2 billion capsules, 10 million injections and 9 million LVP.

The board of directors of Square Pharma has also decided to purchase capital machinery and building for an insulin project from Square Biotechs Ltd at a cost of Tk 81.23 crore, on a cost price basis.

The board has also approved Tk 50 crore for BMRE (balancing, modernisation, renovation and expansion) purpose and the purchase of land to extend existing projects and future expansion.

The company's FY2007-08 annual report shows that its exports increased by 10 percent to Tk 21.24 crore against Tk 19.29 crore a year ago. The report also forecasted rising exports in coming years.

Presently, the company exports to more than 30 countries.

Square Pharma recorded net profits of Tk 189 crore with earnings per share of Tk 156.56 as of March 31 this year, compared to Tk 138.18 crore net profits and Tk 114.47 (restated) earnings per share in the same period last year.

The company declared 40 percent cash dividend and 25 percent stock dividend for the year ended March 31, 2009.