Afghan Pharmaceutical Company Agrees to Import Medicines from Indian-Bangladeshi Pharmaceutical Firm
Indo-Bangla Pharmaceuticals, a listed company based in Bangladesh, has signed a significant agreement with Salar Yousafzai Pharma, an Afghanistan-based firm. The deal, disclosed on the stock exchanges on 9 July, marks the company's entry into the Afghan market and is expected to generate steady export revenue over the long term.
The 15-year Memorandum of Understanding (MoU) signed between the two parties is valid from 2025 to 2040 and is renewable upon mutual agreement. Salar Yousafzai Pharma will act as the sole agent for exports in Afghanistan, and the agreement stipulates that the minimum order value per shipment under the agreement is $150,000 (1.5 lakh USD).
The payment terms are 40% in advance via telegraphic transfer (TT) and 60% pre-shipment. Exports will be made on a Free on Board (FOB) basis from Chattogram Port, meaning the buyer will bear the shipping costs and risks once the goods are loaded onto the vessel.
Following the announcement of the export agreement, Indo-Bangla Pharmaceuticals' share price surged by 55%, rising from Tk9.1 on 22 June to Tk14.1 within 12 trading days, indicating positive market sentiment and potential enhancement in shareholder value.
This move into the Afghan market is part of Indo-Bangla Pharma’s strategy to offset domestic business challenges by expanding exports. The company's revenue dropped by 53% to Tk7.69 crore in the first nine months of 2024-25 fiscal, and in FY24, the company incurred a loss of Tk4.09 crore with per share loss of Tk0.35.
The deal with the Afghan firm is expected to contribute positively to Indo-Bangla Pharmaceuticals' revenue streams. The company paid 0.1% cash dividend for its shareholders in FY24, and as of June 2024, the general shareholders held 52.83% shares of the company, institutional investors held 22.74%, and sponsor-directors held 24.43%.
The Dhaka Stock Exchange (DSE) issued a query to the company because there was no price-sensitive information related to the surge in the share price. The MoU presents a strategic long-term growth opportunity by opening access to a new market with assured minimum order values, which can potentially enhance shareholder confidence and value.
References: [1] Indo-Bangla Pharmaceuticals Limited. (2025). Company Announcement. Retrieved from https://www.dsebd.org/announcement [2] Bangladesh Business News. (2025). Indo-Bangla Pharmaceuticals Signs Export Agreement with Afghan Firm. Retrieved from https://www.bangladeshbusinessnews.com/news/indo-bangla-pharmaceuticals-signs-export-agreement-with-afghan-firm/
The strategic 15-year Memorandum of Understanding between Indo-Bangla Pharmaceuticals and Salar Yousafzai Pharma involves the finance sector, as the agreement specifies payment terms of 40% in advance via telegraphic transfer and 60% pre-shipment. This business expansion into Afghanistan is part of Indo-Bangla Pharmaceuticals' strategy to address domestic challenges by boosting exports and diversifying their revenue sources.
