Pharma Aids plans to boost production by 20% to meet rising demand by engaging in toll manufacturing. The company, known for ampoule production, currently reaches a capacity of 0.45 million glass ampoules daily. To bridge the gap, Pharma Aids will partner with an undisclosed private company to supply an additional 0.10 million ampoules daily, with a trial period extending until March 2024. If the trial proves successful in terms of quality and customer acceptance, a final deal will be pursued.
The company, listed since 1987, has seen its stock stagnant at Tk 790.70 (floor price) per share since November 2022. The company faced losses in the past two quarters through March 2023 due to declining net sales and rising production costs. It reported a total loss of Tk 6.15 million during these quarters, through March 2023. In the nine months through March, the company’s profit was only Tk 0.15 million, significantly lower than Tk 47.76 million in the same period in 2022. Despite a 31% profit decline to Tk 34.75 million for FY22, the company paid a 50% cash dividend in FY2022.
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