Square Pharmaceuticals PLC, Bangladesh’s largest drug manufacturer has announced a Tk650-crore expansion plan alongside a record 120% cash dividend for the fiscal year 2024–25, underscoring both operational confidence and a strong return outlook for investors.
The investment, approved by the company’s board, will cover balancing, modernisation, rehabilitation, and expansion (BMRE), as well as new machinery and land acquisition. The move aligns with Square’s long-term strategy to deepen its leadership in high-value segments such as biological and chronic disease medicines, areas increasingly vital to Bangladesh’s evolving healthcare landscape.
Since 2020, Square Pharma has injected nearly Tk2,000 crore into expansion and modernization. The fresh Tk650-crore investment continues that trajectory, reinforcing the company’s bid to capture growing domestic and international demand.
Bangladesh’s pharmaceutical market is expanding steadily, driven by population growth, rising health awareness, and the prevalence of chronic illnesses such as diabetes and cancer. This post-pandemic demand surge has made pharmaceuticals one of the country’s most resilient growth sectors, drawing consistent investor interest.
However, industry challenges persist, particularly dependency on imported active pharmaceutical ingredients (APIs) from China and India, which exposes manufacturers to global price and supply fluctuations. Square’s continued capital investment thus also reflects a hedge against future supply disruptions through scale and technology upgrades.
Square Pharma’s board declared a 120% cash dividend (Tk12 per share), the highest in its corporate history, following a 15% year-on-year rise in consolidated net profit to Tk2,397 crore. Earnings per share stood at Tk27.04, while net asset value per share reached Tk157.88, signaling strong capital efficiency and liquidity.
Despite a 5% drop in standalone profit to Tk1,474 crore, attributed to product transfers to its subsidiary Square Lifesciences Ltd for tax optimization, the company’s consolidated performance remains solid. This strategic restructuring aims to enhance long-term profitability and operational efficiency without diluting shareholder value.
Square Pharma’s shares closed at Tk213 on the Dhaka Stock Exchange, with a market capitalization of Tk18,881 crore, maintaining its position as the second-largest listed company.
Notably, since 2020, the company’s directors have purchased 1.36 crore shares worth Tk280 crore, increasing sponsor and director holdings to 42.91% from 34.43% in FY19. This consistent insider buying signals strong managerial confidence and underpins long-term investor sentiment toward Square’s sustainable growth model.
Founded in 1958 by Samson H Chowdhury, Square Pharma has evolved from a domestic pioneer to a global exporter, serving 42 markets across Asia, Africa, and Latin America. Its flagship brand, Seclo, continues to dominate domestic sales, while new investments aim to expand its biologics and chronic care portfolio, high-margin segments with rising export potential.
Square Pharma’s expansion signals the broader structural maturity of Bangladesh’s pharmaceutical industry, a sector that has moved from import substitution to export-oriented growth. The Tk650-crore reinvestment, coupled with a record dividend, positions Square as a benchmark for financial discipline and strategic agility in an increasingly competitive regional market.
For investors, the announcement reinforces the sector’s long-term value proposition, where operational modernization, strong governance, and steady dividend yields converge to create sustained equity confidence in Bangladesh’s industrial growth story.
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