Ibn Sina Pharma to set up backward linkage
Move fails to lift its stock price
Ibn Sina Pharmaceuticals is set to invest in a polymer manufacturing plant that would primarily supply pet bottles, bottle caps and other pharma-related plastic products to the drug maker.
The plant, which would be situated at Gazipur's Maowna, would be under a subsidiary named Ibn Sina Polymer.
Yesterday, Ibn Sina Pharmaceuticals, which got listed on the Dhaka Stock Exchange in 1989, informed the bourse yesterday that it would have 65 per cent equity in the subsidiary.
The news though failed to lift its stock price: its shares closed at Tk 235.60, down 0.42 per cent from the previous day.
Ibn Sina Polymer's paid-up capital would be Tk 10 crore and authorised capital of Tk 40 crore.
The drug maker will invest Tk 6.5 crore in IBN Sina Polymer and the remaining Tk 3.5 crore would come from Ibn Sina Trust.
"Such investments will help the company to grow more," said Md Jasim Uddin, chief financial officer of Ibn Sina Pharmaceuticals.
Ibn Sina Pharmaceuticals is yet to decide how it would provide the Tk 6.5 crore for the subsidiary.
Once the process to form the company starts the source of funding will be decided then, he added.
Ibn Sina Pharmaceuticals' net sales witnessing more than 13 per cent growth at least in the last five years. In the 2018-19 financial year, its yearly turnover rose 13 per cent to Tk 526.4 crore.
Its earnings per share have been on a good growth trajectory, save for in the 2018-19 financial year when it dropped 25.7 per cent to Tk 10.76.
Ibn Sina's products sold mostly in Chattogram and Dhaka division. The Chattogram division alone accounts for about 31 per cent of its turnover.
The drug maker's top selling brand is Dexlan, which is a healing medicine for gastric ailments.