Indo-Bangla Pharma set to export drugs to Afghanistan

Indo-Bangla Pharmaceuticals, a listed drug maker, is likely to start exporting its products to Afghanistan from this year.

In a disclosure at the Dhaka Stock Exchange (DSE) yesterday, the company said its board of directors has approved the signing of a Memorandum of Understanding (MoU) with Afghanistan-based Salar Yousafzai Pharma Ltd for the export of pharmaceutical products.

The board meeting was held on July 8.

Regarding key points of the MoU, the disclosure states that Salar Yousafzai Pharma Ltd will act as Indo-Bangla's sole agent in Afghanistan.

The tenure of the MoU will be valid for 15 years, from 2025 to 2040, and is renewable upon mutual agreement, it adds.

The minimum order value would be $1.5 lakh per shipment with a regular export plan, while payment terms are 40 percent advance telegraphic transfer and 60 percent pre-shipment.

The company said the strategic collaboration is expected to strengthen its financial position by boosting export revenue, increasing foreign currency earnings, and supporting long-term business growth, thereby enhancing shareholder value, the company expressed its hope in the disclosure.

Indo-Bangla's shares surged 55 percent in the last half of the month before the announcement.

Yesterday, however, its share price dropped 0.70 percent to Tk 14.10 at the DSE.