Company Position in the Market
The Company is holding 3rd position as on 2013. The market size of Beximco Pharmaceutical Limited in 2013 was TK 816 crore and market share was 8.6% with growth rate 5%. (Source: Bangladesh Pharmaceutical Index 2013(1st Quarter).
SWOT Analysis
Strength:
1. There is a range of more than 500
products encompassing all major therapeutic categories of Beximco Pharma
products;
2.
The 3rd largest company in
Pharmaceuticals industry.
3.
There is a committed workforce facility
of around 3000 people in the company,
4.
High quality generic drugs production
and making them affordable to people,
5.
A leading exporter of medicines in the
country winning National Export (Gold) Trophy a record four times,
6. A benchmark to global standard,
accreditation by major global regulatory authorities and expansion of geographic
footprint across all the countries,
7.
Beximco pharmaceutical is the first company who has introduced
anti-retroviral (ARV) drugs in Bangladesh in 2003,
8.
Only company in Bangladesh to be on the
Alternative Investment Market (AIM) of London Stock Exchange (LSE) through
issuance of GDRs in 2005,
9. This is the first Bangladeshi company
who has received GMP accreditation from Therapeutic Goods Administration (TGA),
Australia and Gulf Central Committee for Drug Registration, for GCC states,
Technology transfer arrangement to manufacture Roche’s ARV Drug Saquinavir in
2008.
1. This is one and only Bangladeshi company
who has received GMP approval from ANVISA, Brazil in 2009,
1. The only pharmaceutical company in Bangladesh
has entered the US market through acquisition of an Abbreviated New Drug
Application (ANDA) in 2010. (Source: Annual report of Beximco pharmaceutical
Ltd 2013)
Weakness:
1. The
growth rate of Beximco Pharma is not in progressive level. In 2009 the growth
rate was 7.72%, 2010 it was 8.35%, and in 2013 the rate was 5% only.
Opportunities: There
are huge numbers of opportunities and potentials of growing Pharma industry in
Bangladesh.
1.
Bangladesh is a very cheap labor
intensive country among world, where with a very little labor cost products can
produce and production capacity can increase at a massive volume.
2.
There are around 17 crore people are
living in a little Bangladesh. Every day they face many new diseases most of
virus affecting. For serving this large people here need drug manufacturing
companies whom have big opportunity to serve people with prospective business
scope.
3.
Without allopathic medicine in
Bangladesh there is huge demand for homeopathic, herbal, nutraceutical and ayurvedic medicine.
These are the vast scope for Beximco Pharma to manufacture these medicines.
Threats:
1.
Huge numbers of competitors exist in
market and many new Pharma companies are entering in market with numbers of
innovative products and modern technology;
2.
A number of companies are growing
rapidly than Beximco Pharma like Opsonin Pharma, Renata Pharma, Aristo Pharma,
Drug International, Healthcare Pharma, those growth rates in 2013 are 10%, 10%,
13%, 14% and 19% where Beximco Pharma’s growth rate is only 5%.
3. Political instability is a major threat
for any industry. With companies loss the whole industry can fall down the
unrest political situation.
4.
Entrance of foreign competitors and big
MNCs are another threat for local drug manufacturer.
5.
Though in 2014 budget, the raw materials
importing duties have been relaxed 5-20% but in previous years cost of
importing raw materials is still affecting the company’s performance.
Financial Analysis
In 2013, the profit earning ability of
Beximco Pharma has reduced because the gross profit margin has reduced by 1.13%
(from 47.25% to 46.12%); the net profit margin has also reduced by 0.81%
(14.20% to 13.39%). Moreover, return on asset and return on equity also
decreased by 0.26% and 0.07% respectively. Though earnings per share have
increased by 0.24% and the assets utilization has increased 0.004 times more
efficiently than 2012 year. Moreover, 2013 the company has earned 1.76% more than 2012 investing in share
market. The management team of Beximco Pharmaceuticals Ltd should give most
attention toward their utilization of assets more effectively through
decreasing cost of goods sold, administration and other operating cost at best
level. (See appendix 6 & 7).
Recent
Updates of Beximco Pharma
§
The Beximco Pharma has launched 23
products in domestic market; 6 of which were for the first time in Bangladesh
in 2013
§
It has registered 38 products in 14
different countries: Madagascar, Estonia and Uganda to be new to the list.
§
It has began export of two ophthalmic
products to Europe(Germany and Australia) for the first time from Bangladesh in
2013
§
3
ANDAs (Abbreviated New Drug Application) filed with US FDA (Food and Drug
Administration).
§
Beximco
Pharma – Asia’s Most Promising Brand: The Beximco Pharma
Company has won the prestigious Asia’s Most Promising Brand Award at the Asian
Brand and Leadership Summit 2013 that was held during 26-27 August, 2013 in
Dubai. Beximco Pharma has ranked among top 30 from 200 rising brands in Asia.
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