Renata to launch Parkinson's drug in Germany in widening footprint in EU

Renata Ltd has received approval for one of its brands to export medicines to Germany.

The permission enables its subsidiary company in Europe, Renata Pharmaceuticals Ireland to launch its first brand in Germany - Cabergoletten (Cabergoline 1mg and Cabergoline 2mg), a drug used to treat symptoms of Parkinson's disease.

The supply of Cabergoletten to the German market will begin in the next two to three months, said Syed Omar Kabir, general manager of Renata.

"We believe Germany will be one of the major markets contributing to Renata's export growth in the future," Mr Kabir told the FE over the phone.

To tap into the potential of drug export to the EU countries, the company is seeking to expand its footprint there.

One of the leading drug manufacturers in Bangladesh, Renata has been heavily focused on research and development (R&D) of complex generics for several years, said Mr Kabir.

Renata will file over 25 new product applications across regulated markets, including the EU, Canada, Australia, the USA and the UK.

"All [the drugs] developed through our in-house expertise," Mr Kabir added.

With a commitment to expanding business in the EU, Renata established a subsidiary in the UK in 2018.

After Brexit when the UK withdrew itself from the European Union, Renata established another subsidiary in Ireland in 2019 to overcome cross-border trade complications.

Renata is one of the fastest growing pharmaceutical and animal health product manufacturers in Bangladesh.

It began its operations in 1972 as Pfizer (Bangladesh). In 1993, Pfizer transferred the ownership of its Bangladesh operations to local shareholders, and the name of the company was changed into Renata.

The company manufactures and markets medicines, nutritional products, and vaccines for humans along with veterinary medications.

Renata is also the contract manufacturer for UNICEF and SMC for general products, such as birth control pills, oral saline, and micronutrient powders.

Listed in 1979, Renata's annual profit rose only 1 per cent to Tk 5.11 billion in FY22. It declared 140 per cent cash and 7 per cent stock dividends for the year for its shareholders.

The drug maker has reported a 33 per cent year-on-year decline in profit to Tk 2.69 billion in the nine months through March this year despite an 8.74 per cent revenue growth during the period.

Profit fell due to the price hike of raw materials, rendered by the prevalent dollar crunch and an increase in foreign exchange losses on imports, said the company in its earnings note.

The local currency lost its value about 25 per cent during the period.

Despite the grim scenario, the company retains its financial strength, becoming the seventh largest company in the Dhaka bourse with Tk 130-billion plus market value.

The stock has been languishing at the floor price of Tk 1,217.9 since November last year.

Renata has 10 manufacturing facilities inside its three sites at Mirpur in Dhaka, Rajendrapur in Gazipur, and Bhaluka in Mymensingh. Its product distribution is carried out via 19 depots across the country.

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