Square Pharmaceuticals PLC, the largest drug manufacturer in the country, is set to expand its reach by establishing a subsidiary in the Philippines, as confirmed by the board’s decision today.
The board has greenlit an investment of $1 million in Samson Pharma Inc, Philippines, marking Square Pharma’s entry into the market. The subsidiary will focus on marketing and distributing pharmaceutical products in the Philippines, commencing operations with an initial investment of $2.5 million.
Square Pharma disclosed that the approved debt-equity ratio stands at 60:40 for this venture, anticipating the business of Samson Pharma Inc to kick off by April 2024.
Muhammad Zahangir Alam, Square Pharma’s Executive Director for Finance and Strategy, highlighted that the Philippines currently sources half of its medicinal needs through imports, with a significant portion coming from India. He mentioned that Bangladesh, including ten companies such as Square Pharma, also exports medicines to the Philippines.
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Alam emphasized Square Pharma’s comprehensive product range and the strategic move to establish a presence in the Philippines to fully capitalize on the opportunities in this market.
Additionally, Square’s board authorized an agreement with General Pharmaceuticals Ltd. Dhaka for contract manufacturing to meet the escalating demand for an existing product.
This development follows Square Pharmaceuticals’ earlier venture abroad with the establishment of Square Pharmaceuticals Kenya EPZ Ltd, focusing on manufacturing and selling generic pharmaceuticals for Kenya and the East African community.
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Square Pharma’s unaudited financial statement for July-September this fiscal year reported an 11% year-on-year profit growth, reaching Tk 606 crore.
