Equity Analysis /

BANGLADESH PHARMA: Regulatory concessions for API manufacturers reinforce favourable operating landscape

    Waseem Khan
    Waseem Khan

    Equity Research Analyst, Financials, Consumer and Pharmaceuticals (Bangladesh)

    Tellimer Research
    28 May 2018
    Published byTellimer Research
    News reports suggest the government is set to offer Active Pharmaceutical Ingredient (API) manufacturers tax holidays until 2032, with additional exemptions for advance income tax and cash incentives for export. APIs are a primary raw material for drugs. Given Square and Beximco are largely import dependent on APIs, we see limited near-term benefits for them. However, we view this as a long-term positive for exports and further consolidation.