The leading drug makers secured a double-digit year-on-year growth in profit in FY24, driven by higher sales amid stability in the forex market.
Based on the profit growth, they declared higher cash dividends for FY24, compared to the previous year.
"The drug makers maintained their profit growth as the demand for generic products grew in the local market," said Akramul Alam, head of research at Royal Capital.
The collective profit of eight major drug makers, which published their earnings reports for FY24, stood at Tk 34.7 billion for FY24, 17 per cent higher over the year before.
Square Pharmaceuticals, the largest drug maker in the country, posted a record profit of Tk 20.92 billion for FY24, driven by record sales.
Its sales grew 12 per cent year-on-year to Tk 70 billion in FY24.
The company's expanded distribution network boosted its revenue, resulting in a record profit growth in FY'24, said a senior official of the company, requesting not to be named.
Buoyed by the record profit, Square Pharma declared highest-ever cash dividends -- 110 per cent -- for FY24.
Renata, another major drug maker, reported a profit of Tk 3.62 billion in FY24, registering a 55 per cent increase from the previous year, primarily supported by higher exports and lower finance expenses.
It declared a 92 per cent cash dividend, meaning shareholders will get Tk 9.2 per share.
Renata's sales jumped 14 per cent year-on-year to Tk 37.71 billion in FY24.
IBN Sina Pharma posted an 11 per cent year-on-year growth in profit to Tk 670 million for FY24, riding on higher sales revenue.
The newly-listed Techno Drug also posted a 43 per cent profit growth to Tk 280 million for FY24 and declared a 12 per cent cash dividend.
Mir Ariful Islam, managing director of Sandhani Asset Management, said the drug makers had secured their profit growth by successfully managing operating costs. People had to spend more to buy medicines as essential products, Mr Islam added.
The healthcare expenditure per capita was just $30 in 2014, which jumped to more than $58 in 2022.
The local pharmaceuticals industry is one of the success stories of Bangladesh with a remarkable growth in recent years.
The global pharmaceutical industry is expected to grow by 5.80 per cent in the next five years through 2028, while the local pharmaceuticals is expected to grow more than 15 per cent during the time, according to Statista, a global data and business intelligence platform.
At present, the global market size of this industry is $1,482 billion.
The industry contributes more than 1.83 per cent to the country's GDP, according to the Director General of Drug Administration (DGDA). About 80 percent of the drugs sold are generic and the rest are patented drugs.
Currently, local manufacturing companies meet 98 per cent of the domestic demand with a market size of Tk 266 billion.
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