Renata Limited, one of the leading pharmaceutical companies in the country, has decided to form a subsidiary in Ireland to continue exports of its products to member countries of European Union after Brexit.
The approval to form Renata Ireland Limited came at the company’s board of directors meeting on Wednesday, according to a disclosure Dhaka Stock Exchange posted on its web site on Thursday.
Renata had earlier said they committed to exporting its products to European countries and for that they established a company in the United Kingdom in May, 2018.
As the UK is in a process (known as Brexit) of withdrawing itself from the European Union, the company has decided to establish a new company in another EU country, Ireland, by fulfilling all the regulatory requirements, the web post said.
Renata company secretary Jubayer Alam told New Age, ‘As per the law of the European Parliament and of the Council, we must establish a subsidiary to export our products to the EU countries.’
‘As per the decision of European parliament, we must set up a subsidiary in any other EU country by March 30 to continue our business in the Union,’ he said.
Jubayer said that there was a huge space for medicine business in the EU countries and the company expected vast trading in those areas.
The company will continue its business in the UK with its current subsidiary Renata (UK) Limited, he said.
Renata Limited, which was listed on the Dhaka bourse in 1979, disbursed 95 per cent cash and 15 per cent stock dividend for the year ended on June 30, 2018.
Share prices of the drug maker soared by 1.4 per cent on Thursday to close at Tk 1,176.60 each after the news was disseminated by DSE.
The company’s paid-up capital is Tk 80.53 crore.
Of the shareholding position, sponsor-directors hold 51.16 per cent stake in the company while institutional investors 19.10 per cent, foreign investors 22.39 per cent and general public 7.35 per cent as on January 31, 2019.
In July-December of 2018, the company’s consolidated earnings per share stood at Tk 21.08 compared with that of Tk 17.46 in the same period in the previous year.
The company started its operations in 1972 as Pfizer (Bangladesh). In 1993, Pfizer transferred the ownership of its Bangladesh operations to local shareholders and the name of the company was changed to Renata Limited.
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