GENERIC DRUG INDUSTRY OF BANGLADESH · Source: Bangladesh Association of Pharmaceuticals Industry...
Transcript of GENERIC DRUG INDUSTRY OF BANGLADESH · Source: Bangladesh Association of Pharmaceuticals Industry...
GENERIC DRUG INDUSTRY OF BANGLADESH
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Market share of generic drug manufacturers of Bangladesh
Generic drugs industry size of Bangladesh Nominal GDP vs. generic drug industry growth rate
Source: Bangladesh Association of Pharmaceuticals Industry (BAPI) Source: Bangladesh Bureau of Statistics (BBS), Annual Report
Top ten generic drugs of Bangladesh
Rank Name Company Category
1 SECLO Square Pharma GERD*
2 SERGEL Healthcare Pharma GERD
3 MAXPRO Renata GERD
4 PANTONIX Incepta Pharma GERD
5 CEF-3 Square Pharma Antibiotics
6 MIXTARD Novo Nordsik Insulin
7 NAPA EXTRA Beximco Pharma Antipyretic
8 LOSECTIL Eskayef GERD
9 NAPA Beximco Pharma Antipyretic
10 EXIUM Radiant Pharma GERD
*GERD - Gastroesophageal reflux disease
Source: IMS
INDUSTRY OVERVIEW - GENERIC DRUG INDUSTRY
Generic drugs industry
grew at an annual average
rate of 15.4%
1,1
78
1,2
73
1,4
20
1,6
35
1,9
54
2,2
28
0
750
1,500
2,250
2012
2013
2014
2015
2016
2017
US
D m
n
Generic drug industry size
15.213.6
12.1
12.814.3 14.0
11.9
8.1
11.5
15.1
19.5
14.0
0
5
10
15
20
25
2012
2013
2014
2015
2016
2017
%
Nominal GDP growth rate
Generic drug industry growth rate
Generic drugs manufacturers of Bangladesh produce 3,622 generic drugs with
different forms of dosages. Generic drugs produced in Bangladesh has the same
quality and composition but cheaper due to low labour cost and TRIPS exemp-
tion. The industry registered an annual average growth rate of 16.2% during
2007-2017.
Generic drugs manufacturers of Bangladesh produce 3,622 generic drugs with different forms of dosages
Source: IMS
Square 16.9%
Incepta Pharma 10.6%
Beximco 8.3%
Opsonin Pharma 5.3%
Renata 5.1%
Healthcare Pharma 4.9%
ACI 4.5%
Eskayef 4.4%
Aristopharma 4.2%
Acme 3.7%
Others 32.1%
Global Pharmaceutical market was valued at USD 1,140bn in 2017 whereas global
generic drugs market was valued at USD 350bn. Global generic drugs market is
growing at a faster rate than Global pharmaceutical market mainly due to two
factors a) increasing government pressure around the world to reduce healthcare
cost, b) increasing number of blockbuster drugs are going off patent every year.
Generic drugs industry of Bangladesh was valued at USD 2,228mn in 2017. Ge-
neric drugs manufacturers of Bangladesh satisfy 97.0% of the local demand.
Bangladesh imports vaccines, anti-cancer products, hormone and some special-
ized drugs etc. which cannot be manufactured locally. The country registered ‘7%
plus’ real GDP growth rate in each of the last three financial year. Pharmaceutical
sector’s growth exceeded GDP growth rate in the same period.
DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, LEGAL ENTITY DISCLOSURE AND THE STA-TUS OF NON-US ANALYSTS.
3
Source: World Bank database
59
0
64
0
71
0
78
0
87
0
94
0
1,0
10
1,0
70
1,1
90
1,3
30
14
70
0
200
400
600
800
1,000
1,200
1,400
1,600
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Curr
ent U
S$
GNI per capita
52
54
58 64 71
76
78 83
88 95
10
2
0
20
40
60
80
100
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Curr
ent in
tern
ational $
Health expenditure per capita
GNI per capita (Atlas Method) Health expenditure per capita
Source: World Bank database
Urban population of Bangladesh is growing at faster rate than overall population
of Bangladesh. Population of Bangladesh grew at an annual average rate of 1.1%
during 2011-17 whereas urban population grew at a rate of 3.5% during the
same period. Urban population comprised 35.9% of the total population in 2017.
People living in the city have higher purchase power and also more health con-
scious than the rest.
High out-of-pocket expenditure in purchasing drugs is the most distinctive feature
in Bangladesh. Out-of-pocket health expenditure was 71.8% of total healthcare
expenditure in 2015. So more than two third of the healthcare cost is paid by the
people personally whereas the global standard is less than 32.0%. Nearly, 62.0%
of the healthcare expenditure is attributable to purchasing drugs and medical
consultations.
Increasing spending on healthcare by government and public would spur the de-
mand of generic drugs: Generic drug market, contributing 2.0% to GDP, has been
one of the success stories of Bangladesh in last three decades. Increasing income
level and demographic change are the two main factors behind the rising
healthcare expenditure.
In FY18, government of Bangladesh spent BDT 210bn in health and family wel-
fare sector and the amount is increasing every year. GNI per capita of Bangla-
desh grew at an annual average rate 9.2% over 2007-2017 while healthcare ex-
penditure per capita grew at an annual average rate of 7.4% during the same
period under review. Despite government support, per capita spending on
healthcare in Bangladesh is very low compared to other Asian and lower middle
income countries. We view that healthcare expenditure per capita would continue
to rise, mainly attributable to rising income level, improving educational level and
increasing health awareness.
Population of Bangladesh & Urban population % of total population
Source: World Bank database
15
2
15
4
15
6
15
8
15
9
16
1
16
3
16
5
24.0
28.0
32.0
36.0
40.0
143
148
153
158
163
168
2010
2011
2012
2013
2014
2015
2016
2017
%mn
Population of Bangladesh Urban population (% of total population)
INDUSTRY OVERVIEW - GENERIC DRUG INDUSTRY
4
Out-of-pocket healthcare expenditure (% of current healthcare expenditure)
64.9 65.165.8
67.2 67.2 67.2 67.4 67.568.5
69.9
71.8
60
63
66
69
72
75
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
%
Out-of-pocket healthcare expenditure (% of current healthcare expenditure)
Source: World Bank database
Generic drugs manufacturers has yet to tap full potential of exporting drugs: Cur-
rently, Bangladesh exports pharmaceutical products to 199 countries. Over the
last two decades ~1,200 pharmaceutical products received registration for ex-
port. Export grew at a CAGR of 11.6% during FY13-18. Export growth of Bangla-
deshi pharmaceutical products can be explained by growing demand of generic
drugs in international market, competitive pricing and high product quality.
Pharmaceutical product export and growth - Bangladesh
Source: Export Promotion Bureau of Bangladesh (EPB)
During the first six month of FY19, Bangladesh exported USD 50mn worth of
pharmaceutical products. Southeast Asia and Africa are the major export destina-
tion of pharmaceutical products. The major export markets for generic drugs
manufacturers of Bangladesh are Myanmar, Sri Lanka, Philippines, Afghanistan,
Kenya etc. Total export sales of pharmaceutical products is still very low. Export
volume is less than 5.0% of total sales and only the large pharmaceutical compa-
nies get bulk orders.
Export should have been contributed more in sales considering the competitive
edge local manufacturers have in producing generic drugs. Extensive focus on
grabbing domestic market and stringent policy imposed by the developed coun-
tries in importing drugs are the primary two reasons behind the low export of
pharmaceutical products. On the brighter side, leading generic drugs manufactur-
ers of Bangladesh have increased their focus on regulated market i.e. USA and
Europe. Top pharmaceutical companies of Bangladesh i.e. SQUARE, Incepta,
Beximco Pharma have already received approval from USFDA to export drugs to
USA.
4860
69 7382 89
103
50
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0
20
40
60
80
100
120
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
%
US
D m
n
Export of pharmaceutical product of Bangladesh (LHS)
Growth (RHS)
Source: Export Promotion Bureau of Bangladesh (EPB)
Export destination of pharmaceutical products - 6MFY19
*Export of FY19 represent total pharma export of first six month
7.3 7.2
3.4 3.32.7 2.7
1.7 1.5 1.5 1.2
0.0
2.0
4.0
6.0
8.0
Myanm
ar
Sri
Lanka
Philip
pin
es
Afg
hanis
tan
Kenya
Vie
t N
am
Cam
bodia
Nepal
Costa
Ric
a
Yem
en
US
D m
n
Export Destination
INDUSTRY OVERVIEW - GENERIC DRUG INDUSTRY
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Revenue grew 9.4% YoY and 2.2% QoQ in 2QFY19. This growth was
mainly driven by moderate growth in domestic sales (up 8.3%) during
the period. Revenue from export decreased by 3.5% during 6MFY19.
Selling and administrative expenses increased by 15.5% YoY as Square
has been heavily spending on its salesforce to strengthen its position in
generic drug market. We expect that investment in salesforce would
positively affect the top-line in the upcoming quarters.
Net profit grew 9.5% YoY. However, ROA and ROE decreased by 230
and 280 bps.
Square Pharmaceuticals Limited
Revenue (BDT mn) Operating Profit (BDT mn) Net Profit (BDT mn)
P/E (x)
Source: DSE
Revenue growth % (QoQ) Operating Profit growth % (QoQ) Net Profit growth % (QoQ)
Revenue growth % (YoY) Operating Profit growth % (YoY) Net Profit growth % (YoY)
17.8
16.7
16.4
Pharma sector
SQURPHARMA
Market
8,7
00
9,5
09
9,9
01
9,8
68
9,8
53
9,8
52
10
,081
10
,542
10
,776
0
2,000
4,000
6,000
8,000
10,000
12,000
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
2,9
36
3,4
46
3,1
08
3,4
17
3,0
73
3,3
30
2,9
61
3,6
43
3,4
12
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
2,4
58
2,9
34
2,8
31
3,0
12
2,8
60
2,9
79
2,7
56
3,1
72
3,1
30
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
(0.2
)
(0.0
)
2.3
4.6
2.2
(1.0)
0.0
1.0
2.0
3.0
4.0
5.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
(10
.1)
8.3
(11
.1)
23
.0
(6.3
)
(15.0)
(7.5)
0.0
7.5
15.0
22.5
30.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
(5.0
)
4.1
(7.5
)
15
.1
(1.3
)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
13
.3
3.6
1.8
6.8
9.4
0.0
2.5
5.0
7.5
10.0
12.5
15.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
4.7
(3.4
)
(4.7
)
6.6
11
.0
(8.0)
(4.0)
0.0
4.0
8.0
12.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
16
.3
1.5
(2.6
)
5.3
9.5
(5.0)
0.0
5.0
10.0
15.0
20.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
6
Gross profit margin % Operating Profit margin % Net Profit margin %
EPS (BDT)
Source: Quarterly & Annual Report
ROA % ROE % Book value per share (BDT)
Square Pharmaceuticals Limited 5
1.1
49
.6
47
.4
50
.5
49
.1
49
.3
45
.9
51
.5
50
.6
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
33
.7
36
.2
31
.4
34
.6
31
.2
33
.8
29
.4
34
.6
31
.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
28
.3
30
.9
28
.6
30
.5
29
.0
30
.2
27
.3
30
.1
29
.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
21
.1
21
.3
20
.6
19
.7
19
.3
19
.0
0.0
5.0
10.0
15.0
20.0
25.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
22
.9
23
.2
22
.4
21
.3
20
.8
20
.4
0.0
5.0
10.0
15.0
20.0
25.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
3.1
2
3.7
2
3.5
9
3.8
2
3.6
2
3.7
8
3.4
9
4.0
2
3.9
7
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
66
.26
66
.65
69
.86
73
.28
77
.40
77
.90
0.00
15.00
30.00
45.00
60.00
75.00
90.00
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
7
BXPHARMA posted a solid performance in 2QFY19 with a revenue of
BDT 5,725mn, an increase of 31.3% compared to the same period of
the previous year.
Gross profit, operating profit and net profit after tax grew by 31.1%,
21.4% and 9.0% respectively. Net profit margin has decreased by 260
basis point to 12.8%. Net profit margin has declined as interest expens-
es increased during this period (BDT 253mn vs BDT 100mn).
BXPHARMA currently has some ongoing projects at hand. Unit III (oral
solids, semi-solids and liquids) is expected to be fully operational by the
end of 2019.
Beximco Pharmaceuticals Limited
Revenue (BDT mn) Operating Profit (BDT mn) Net Profit (BDT mn)
P/E (x)
Source: DSE
Revenue growth % (QoQ) Operating Profit growth % (QoQ) Net Profit growth % (QoQ)
Revenue growth % (YoY) Operating Profit growth % (YoY) Net Profit growth % (YoY)
17.8
16.4
12.1
Pharma sector
Market
BXPHARMA
3,8
65
3,8
14
4,0
64
4,2
79
4,3
60
4,2
21
4,8
57
5,3
85
5,7
25
0
1,000
2,000
3,000
4,000
5,000
6,000
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
90
2
81
9
86
4
95
8
1,0
33
92
8
1,1
06
1,2
30
1,2
55
0
200
400
600
800
1,000
1,200
1,400
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY195
98
52
2
59
2
64
4
67
3
60
3
61
2
75
4
73
4
0
100
200
300
400
500
600
700
800
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
1.9
(3.2
)
15
.1
10
.9
6.3
(5.0)
0.0
5.0
10.0
15.0
20.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
7.8
(10
.2)
19
.2
11
.2
2.0
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
25.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
4.4
(10
.4)
1.5
23
.1
(2.7
)
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
25.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
12
.8
10
.7
19
.5 2
5.9
31
.3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
14
.6
13
.3
28
.1
28
.4
21
.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
12
.5 1
5.6
3.4
16
.9
9.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
8
Gross profit margin % Operating Profit margin % Net Profit margin %
EPS (BDT)
Source: Quarterly & Annual Report
ROA % ROE % Debt-to-equity ratio %
Beximco Pharmaceuticals Limited 4
7.1
46
.9
45
.4
46
.1
46
.2
47
.4
47
.3
47
.0
46
.1
0.0
10.0
20.0
30.0
40.0
50.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
23
.3
21
.5
21
.2
22
.4
23
.7
22
.0
22
.8
22
.8
21
.9
0.0
5.0
10.0
15.0
20.0
25.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
15
.5
13
.7
14
.6
15
.1
15
.4
14
.3
12
.6
14
.0
12
.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
7.0
7.0
7.0
6.6
6.4
6.2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
9.5
9.6
9.7
9.6
9.9
9.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
16
.7
19
.5 27
.5
41
.3
39
.5
40
.5
0.0
10.0
20.0
30.0
40.0
50.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
1.4
7
1.2
9
1.4
6
1.5
9
1.6
6
1.4
9
1.5
1 1.8
6
1.8
1
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
9
4,2
27
3,9
14
4,9
85
4,6
57
4,6
81
4,6
01
5,1
11
5,1
73
5,3
98
0
1,000
2,000
3,000
4,000
5,000
6,000
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
1,1
05
93
9
1,1
84
1,1
86
1,2
56
86
2
1,3
69
1,2
61
1,6
79
0
300
600
900
1,200
1,500
1,800
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
65
0
62
1
83
9
70
7
69
9
77
4
92
5
84
2
85
5
0
150
300
450
600
750
900
1,050
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
0.5
(1.7
)
11
.1
1.2
4.4
(5.0)
(2.5)
0.0
2.5
5.0
7.5
10.0
12.5
Q2 Q3 Q4 Q1 Q2
FY18 FY19
5.9
(31
.3)
58
.7
(7.9
)
33
.1
(40.0)
(20.0)
0.0
20.0
40.0
60.0
80.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
(1.2
)
10
.7 1
9.5
(9.0
)
1.6
(15.0)
(7.5)
0.0
7.5
15.0
22.5
Q2 Q3 Q4 Q1 Q2
FY18 FY19
10
.8
17
.5
2.5
11
.1
15
.3
0.0
4.0
8.0
12.0
16.0
20.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
13
.6
(8.2
)
15
.6
6.3
33
.7
(20.0)
(10.0)
0.0
10.0
20.0
30.0
40.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
7.6
24
.7
10
.3
19
.0
22
.3
0.0
5.5
11.0
16.5
22.0
27.5
Q2 Q3 Q4 Q1 Q2
FY18 FY19
Revenue grew 15.3% YoY during 2QFY19, mainly attributable to 17.0%
YoY growth in pharmaceutical segment. Pharmaceutical segment con-
tributed 87.3%% in total revenue in 2QFY19. The other two revenue
generating segments, animal health and contract manufacturing & ex-
ports, experienced subdued performance during the period under re-
view.
Operating profit margin increased by 430 basis point to 31.1%. Interest
expenses decreased by more than half YoY to BDT 54mn in 1HFY19. Net
profit after tax grew 22.3% YoY during 2QFY19 – EPS stood at BDT
10.62 during 2QFY19 against BDT 8.68 during 2QFY18.
Renata Limited
Revenue (BDT mn) Operating Profit (BDT mn) Net Profit (BDT mn)
P/E (x)
Source: DSE
Revenue growth % (QoQ) Operating Profit growth % (QoQ) Net Profit growth % (QoQ)
Revenue growth % (YoY) Operating Profit growth % (YoY) Net Profit growth % (YoY)
27.0
17.5
16.4
RENATA
Pharma sector
Market
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
10
53
.8
50
.1
45
.2
51
.9
53
.9
50
.2
42
.7 52
.2
56
.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
26
.2
24
.0
23
.7
25
.5
26
.8
18
.7 26
.8
24
.4 31
.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
15
.4
15
.9
16
.8
15
.2
14
.9
16
.8
18
.1
16
.3
15
.8
0.0
3.0
6.0
9.0
12.0
15.0
18.0
21.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
Gross profit margin % Operating Profit margin % Net Profit margin %
EPS (BDT)
8.0
7
7.7
1
10
.42
8.7
8
8.6
8
9.6
1
11
.49
10
.46
10
.62
0.00
4.00
8.00
12.00
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
Source: Quarterly & Annual Report
15
.3
14
.9 15
.1
15
.0 15
.2 15
.4
14.5
14.8
15.0
15.3
15.5
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
22
.4
21
.8
22
.0
21
.6
21
.5
21
.6
21.0
21.3
21.5
21.8
22.0
22.3
22.5
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
13
.0
14
.3 17
.5
16
.2
11
.8
7.8
0.0
3.0
6.0
9.0
12.0
15.0
18.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
ROA % ROE % Debt-to-equity %
RENATA LIMITED (RENATA)
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
11
Revenue stood at BDT 3,913mn during 2QFY19, a 10.5% YoY increase
compared to the prior-year result. Despite improvement in gross profit
margin and net profit margin, net income grew by only 1.7% YoY as
interest expenses increased by 44.3%.
The company is currently financing three projects with the IPO proceeds
– steroid & hormone projects, Penicillin projects and API projects. Ster-
oid & hormone and Penicillin project are expected to come into commer-
cial operation by June 2019. We expect a spike in top-line once these
projects start operation.
The ACME Laboratories Limited
Revenue (BDT mn) Operating Profit (BDT mn) Net Profit (BDT mn)
P/E (x)
Source: DSE
Revenue growth % (QoQ) Operating Profit growth % (QoQ) Net Profit growth % (QoQ)
Revenue growth % (YoY) Operating Profit growth % (YoY) Net Profit growth % (YoY)
17.8
16.4
12.3
Pharma sector
Market
ACMELAB
3,2
78
3,2
86
3,8
06
3,5
73
3,6
70
3,6
59
3,9
12
3,9
13
4,0
57
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
78
8
79
8
86
7
84
8
78
2
80
6
72
0
89
9
96
7
0
150
300
450
600
750
900
1,050
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY193
82
38
5
25
2
42
1
38
5
39
1
22
9
38
8
39
2
0
50
100
150
200
250
300
350
400
450
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
2.7
(0.3
)
6.9
0.0
3.7
(2.0)
0.0
2.0
4.0
6.0
8.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
(7.9
)
3.1
(10
.7)
25
.0
7.6
(20.0)
(10.0)
0.0
10.0
20.0
30.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
(8.5
)
1.6
(41
.5)
69
.7
0.9
(50.0)
(25.0)
0.0
25.0
50.0
75.0
100.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
12
.0
11
.4
2.8
9.5
10
.5
0.0
2.5
5.0
7.5
10.0
12.5
15.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
(0.8
)
1.0
(17
.0)
6.0
23
.8
(19.5)
(13.0)
(6.5)
0.0
6.5
13.0
19.5
26.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
0.8
1.7
(9.1
)
(7.8
)
1.7
(12.5)
(10.0)
(7.5)
(5.0)
(2.5)
0.0
2.5
5.0
Q2 Q3 Q4 Q1 Q2
FY18 FY19
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
12
Gross profit margin % Operating Profit margin % Net Profit margin %
EPS (BDT)
Source: Quarterly & Annual Report
ROA % ROE % Debt-to-equity ratio %
The ACME Laboratories Limited 3
8.9
39
.9
44
.5
39
.1
38
.8
39
.3
41
.2
39
.1
39
.8
0.0
10.0
20.0
30.0
40.0
50.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
24
.0
24
.3
22
.8
23
.7
21
.3
22
.0
18
.4 23
.0
23
.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
11
.7
11
.7
6.6
11
.8
10
.5
10
.7
5.8
9.9
9.7
0.0
2.5
5.0
7.5
10.0
12.5
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
4.9
4.8
4.7
4.5
4.3
4.2
0.0
1.0
2.0
3.0
4.0
5.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
8.5
8.5
8.4
8.2
8.0
7.9
0.0
1.5
3.0
4.5
6.0
7.5
9.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
56
.7
58
.6
65
.0
66
.4
72
.3
71
.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Q1
Q2
Q3
Q4
Q1
Q2
FY18 FY19
1.8
1
1.8
2
1.1
9
1.9
9
1.8
2
1.8
5
1.0
8
1.8
4
1.8
5
0.00
0.50
1.00
1.50
2.00
2.50
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
FY17 FY18 FY19
QUARTERLY PERFORMANCE OF LISTED PHARMACEUTICALS COMPANIES
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