Ibn Sina Pharma to create backward linkage
Ibn Sina Pharmaceuticals is defined to purchase a polymer manufacturing facility that would primarily supply pet bottles, bottle caps and other pharma-related plastic products to the drug maker.
The plant, which will be located at Gazipur's Maowna, will be under a subsidiary named Ibn Sina Polymer.
Yesterday, Ibn Sina Pharmaceuticals, which got listed on the Dhaka STOCK MARKET in 1989, informed the bourse yesterday that it could have 65 % equity in the subsidiary.
The news though failed to lift its stock price: its shares closed at Tk 235.60, down 0.42 % from the prior day.
Ibn Sina Polymer's paid-up capital will 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 rest of the Tk 3.5 crore would result 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 foundation of funding will be decided then, he added.
Ibn Sina Pharmaceuticals' net sales witnessing more than 13 per cent growth at least within the last five years. In the 2018-19 financial year, its yearly turnover rose 13 % to Tk 526.4 crore.
Its earnings per share have been on an excellent growth trajectory, save for in the 2018-19 financial year when it dropped 25.7 % to Tk 10.76.
Ibn Sina's products sold mostly in Chattogram and Dhaka division. The Chattogram division alone makes up about about 31 % of its turnover.
The drug maker's state of the art brand is Dexlan, that is a healing medicine for gastric ailments.