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5	5	= Summary =
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7		-* Beximco Pharmaceuticals Ltd. was founded in 1976 and started its operations in 1980.
	7	+* Beximco Pharmaceuticals Ltd. (DSE:BEXIMCO, CSE:BEXIMCO) was founded in 1976 and started its operations in 1980.
8	8	* The company launched its formulation brand in 1983.
9	9	* With an 8.39% market share (based on profit), the company is now holding the third position in the pharmaceuticals industry in Bangladesh.
10	10	* Approximately 4,700 people work at Beximco Pharma and the company has a presence in more than 80 countries. The export earnings of Beximco Pharmaceuticals Ltd. amounted to 32.46 million dollars in the 2018-19 fiscal year.
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42	42	The acquisition has cost Beximco Pharma up to  400 crore BDT which is the biggest takeover in the Pharma Industry of the country so far. Regarding the acquisition, Nazmul Hassan MP, managing director of Beximco Pharma, expressed that Beximco Pharma has a proper strategy to continue its diversification and expansion while establishing the company as a leading pharma company in the region. He also added that the acquisition is a part of their growth strategy. {{footnote}}https://www.dhakatribune.com/business/2021/10/02/beximco-pharma-completes-acquisition-of-a-majority-stake-in-sanofi-bangladesh-limited{{/footnote}}
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	44	+= Industry overview =
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	46	+The pharmaceuticals industry in Bangladesh was once dependent heavily on imports and multinational companies. But now the industry is growing very fast to meet 98% of the domestic demand. The remaining 2% are specialized imports like vaccines, hormone drugs, anti-cancer products and so on. The industry is also exporting to different parts of the world and posting a growth rate of 27% per year in export earnings. In 2018, the industry stood at BDT 205 billion in terms of market size with a compound annual growth rate of 15.6% for the last five years. The industry is expected to grow at a rate of 15% per year to reach $5.11 billion by 2023.
	47	+
	48	+[[image:industry overview.png||alt="industry overview" height="251" width="611"]]
	49	+
	50	+The industry in Bangladesh has found its strengths in the 80s. Over the past 4 decades, the industry has grown to a billion-dollar industry by developing thousands generic drugs and producing other thousands patented drugs. The drugs produced in the country are divided into two parts – 80% are generic, 20% are patented drugs. Different lines of drugs are being produced in the country including Allopathic, Homeopathic, Unani, Ayurvedic, and Herbal.
	51	+
	52	+[[image:types of medicine being produced.PNG||alt="types of medicines being produced in Bangladesh" height="308" width="857"]]
	53	+
	54	+== Key growth drivers of the industry ==
	55	+
	56	+Bangladesh has posted stellar economic growths in the past years until the covid-19 pandemic has come and caused a slip in the GDP growth rate. The country has achieved a growth rate of 7.28% in FY17 and 7.86%, 8.15%, 3.51% in the following financial years. According to Bangladesh Bureau of Statistics (BBS), provisional estimate of GDP for the country in FY21 is 5.47%. The country is experiencing a population growth rate of 1% every year. Per capita income of the country stands at $2,227 in FY21, an increase of $203 from previous fiscal year. Consumption expenditure of the country in FY21 is 75.83% of GDP. Domestic savings increased in FY21 to 24.17% of GDP from 23.77% of GDP a year earlier. Public and private investment together combines to 7.95% of GDP.{{footnote}}https://mof.portal.gov.bd/sites/default/files/files/mof.portal.gov.bd/page/f2d8fabb_29c1_423a_9d37_cdb500260002/10.%20Chapter-01%20Eng%20Eng-21.pdf{{/footnote}} Higher economic growth, increase in disposable income, population growth rate, and changes in pattern of disease are the key drivers for pharmaceuticals industry in Bangladesh. People are also becoming more aware about the facilities they can receive through the pharmaceuticals industry in the country. Apart from that changed life style, improved life expectancy, health awareness, and modern healthcare facilities cause drive in the pharmaceuticals industry.
	57	+
	58	+[[image:key growth drivers.PNG||alt="key growth drivers of pharma industry" height="434" width="555"]]
	59	+
	60	+== Porter’s five forces analysis ==
	61	+
	62	+Porter’s five forces is a model developed by Michael E. Porter of Harvard University in 1979. The model assesses the competitiveness of an industry and the profitability of the companies given the competition.
	63	+
	64	+Threat of new entrant in this industry is lower because a new aspirant in the industry will need huge capital investment and many regulatory permissions in order to start producing drugs. The brand loyalty of the customers is another factor contributing to the barrier of entry.
	65	+
	66	+Threat of substitute products at industry level is low because the companies produce all types of drugs such as allopathic, homeopathic, unani, ayurvedic, and harbal. So, to cure a disease when prescribed a medicine, the consumers will have to come to the industry. But at a company-level, the threat of substitute products is high.
	67	+
	68	+Bargaining power of the buyers is very low in the industry. The patients need to depend on the prescribed products by the doctors and they cannot but buy the drugs at a price setup by the pharmaceutical companies. However, the government has regulations regarding prices of different lifesaving drugs. But those are often not up to the mark for compliance.
	69	+
	70	+Bargaining power of the suppliers is very high. Bangladesh imports over 90% raw materials for pharmaceutical industry worth Tk 47 billion. This makes the bargaining power of the suppliers high and the companies also remain vulnerable to external shocks. Oftentimes, the price of the drugs in the industry fluctuates due to high import costs. However, Bangladesh has laid the foundation to manufacture at least half the raw materials inside the country. Active Pharmaceutical Ingredients (API) Industrial Park is being constructed in Gazaria, Munshiganj.
	71	+
	72	+Rivalry among the top players in the industry is very high. About 68% of the market is controlled by top 10 companies. For a generic medicine class all the companies have a brand which competes against each other in the market.
	73	+
45	45	= Financial performance =
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47	47	Beximco Pharmaceuticals Ltd. has made BDT 370.60 crore profit in the first nine months of the 2020[[image:Profit performance of Beximco.png||alt="profit performance of Beximco" height="213" style="float:right" width="364"]]-2021 financial year which is a 41.28% increase from the same period of the last year (BDT 262.31 crore).{{footnote}}https://www.dhakatribune.com/business/stock/2021/04/29/beximco-pharma-reports-41-profit-in-march-for-fy21{{/footnote}} The company’s Earnings Per Share (EPS) for the 2020-2021 financial year was BDT 8.23, while it was 5. 84 in the last year. The net profit of the company in the last quarter of 2020-2021 financial year was BDT 147 crore while it was BDT 90.92 crore for the same period last year. Beximco Pharma’s net asset value (NAV) was BDT 82.28 for the year ended on June 30, 2021, while it was BDT 79.78 last year.{{footnote}}https://thefinancialexpress.com.bd/stock/beximco-pharma-posts-47pc-growth-square-14pc-in-net-profit-1635046169{{/footnote}} The company has provided BDT 12.50 dividend in 2018, BDT 15.00 in 2019, and BDT 15.00 along with a 10% stock dividend in 2020. The company’s dividend yield was 1.80 percent in 2019 and 2.17 percent in 2020. Moreover, its payout ratio was 20.05% and 17.30% in 2019 and 2020, respectively.