Renata : Fourteenth Issue of our Bi-yearly HR Newsletter







I S S U E

14

JAN 2022

ICMAB Best Corporate

Awards

HR JOURNAL

BI- YEARLY Renata Insight

P E O P L E & C O M M U N I C A T I O N

In This issue

Pharma on a Tk1 Trillion Journey P.1

Introducing RenaLearn P.2

Expanding International Presence P.3

What we know about Omicron? P.4

Renata Limited has been acknowledged by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for “ICMAB Best Corporate Award 2020” for its remarkable performance. The company secured Bronze Award in the Pharmaceuticals Manufacturing Category. Mr. Khokan Chandra Das FCA, General Manager, Finance, received the award on behalf of Renata Limited from Mr. Tipu Munshi, Honorable Minister, Ministry of Commerce, Government of the People’s Republic of Bangladesh at The Le Meridien Hotel, Dhaka on December 30, 2021.

The corporate entities received the ICMAB laurels in 18 categories. Since 2007, the award was introduced as a noble initiative to recognize the invaluable contribution made by the corporate entities in Bangladesh’s different sectors and encourage increased competitiveness among the enterprises for better efficiency.

Renata Limited has received this award for the seventh time in the last eight years between 2013-2020.

Renata Achieved ‘AAA’ Rating for Consecutive

Alphathe

Company as “AAA” in the long term and “ST-1” in the short term along with a stable outlook based on audited financial statements of the Company up to June 30, 2020 and relevant qualitative information up to August 28, 2021.

Pharma on a Tk1 Trillion Journey

Alongside a local market boom, the country’s pharmaceutical sector is expected to rake in over $1.5 billion or around Tk13,000 crore in export earnings per year by 2030 – almost nine times higher than $169 million earned in FY21.

A supportive policy adopted four decades ago together with the aspiration and talents of local entrepreneurs has created an over Tk27,000 Crore pharmaceutical industry in Bangladesh, which is meeting almost the entire domestic demand alongside exporting to over 100 countries. In its research

report entitled “UCB Asset Pharma Outlook in The Fresh Decade”, UCB Asset Management recently said the industry would reach the Tk1 lakh crore milestone mainly riding on the growing local market demand. The projected annual exports will leave room for the local market to contribute to around 87% annual revenue of the industry in 2030.

The annual growth rate of the industry may go as high as 15-16% this decade, which has been 12.1% over the last five years. The pandemic helped the industry achieve a staggering 18.56% growth in the 2020-21 fiscal year.

Dr. Firoj Ahmed, professor and chairman of the Department of Pharmacy at Dhaka University, said due to urbanization and pollution, people are increasingly facing various health problems alongside a rise in income. As a result, the per-capita expenditure in the health sector is also on the rise. “Demographic factors and increased capacity to spend boost sales of any product. Our pharmaceutical industry is also in line and the growth potential of the sector is huge,” he said.

The local market boom

“We are eying a significant demographic shift that will push up drug sales. For the first 40 years of your life, the food industry is trying to make you fat. In the next 40 years, the pharmaceutical industry is treating you for everything,” said Md Risalat Huda, a co-author of the report. Increasing healthcare expenditure, a demographic shift, and also the changing perception of modern medicine together will drive the local market growth, his report pointed out. “Medicine heals doubts as

well as diseases,” Huda said while speaking on the changing perception of people regarding modern medicines as more people prefer modern drugs now. According to the World Bank, among the regional peers, Bangladeshi people spend the least portion of their income on healthcare – only 2.4% to lag behind Pakistan, Indonesia, India, Philippines, Thailand, Myanmar, Nepal and, of course, Vietnam where the ratio is highest in the region, 6.4%. By 2030, people aged over 50 old will account for 22.4% of the local population, which is around 17% now, analysts pointed out, adding due to

lifestyle, food habits, adulteration, and pollution, health issues such as gastric, heart diseases,

respirat-ory problems, neurology-ical issues, and cancer are on the rise here. As the population group depends more on drugs and people here are more positive about modern medicines, analysts expect Bangladesh to follow

Vietnam’s track of increasing healthcare

spending. Alimentary tract and metabolism, cardiovascular, respiratory, neurological, oncological medicines are seeing increasing sales and are set to contribute to the upcoming market boom most.

Exports growing strong

Drugs manufactured by Bangladeshi companies have already entered all developed markets, including the USA, UK, Europe, and Australia, which have stringent regulations and the companies are busy with registering more drugs to export there. Some top-tier pharmaceutical companies of the country, such as Square, Beximco and Renata, have well made their ways to the developed markets. New export players, including DBL Pharma and ACI, too are investing for high revenues from the developed markets. Currently, numerous policies, intermediaries, and existing generic drugs from competing countries are trimming the profit margin for Bangladeshi pharmaceutical exporters. As Bangladeshi companies are more focused on the moderately regulated and unregulated markets, Southeast Asia and Africa are their biggest markets right now. But the good thing is they are gaining consumers’ trust in the developed markets.

Companies are establishing supply chain networks abroad. Masum Alvi said,

(more on pg. 3)

EDITORIAL

Renata has managed the year 2021 very well in terms of growth. The overall expansion of our Kashor & Habirbari Sites, and sales operations has enabled us to increase the manpower. With the contribution of both new and experienced teams Renata is marching forward. Our Rajendrapur General Facility & Mirpur Potent Porduct Facility has achieved approval from Brazilian regulatory authority (ANVISA), ICMAB awarded the Best corporate Award for the seventh time in last eight years, Achieved the “AAA” rating for the second consecutive year, continuous expansion into foreign markets with a view to establish Renata globally, etc. are some of the notable accomplishments. In 2021 Our Product ‘Algin’ has entered the Tk100 Crore Club after ‘Maxpro: the leading brand of Renata’. To support the colleagues

remotely Online learning portal “RenaLearn” was launched exclusively for Renata Limited employees. These are all a part of the robust growth that we are blessed to be a part of in such exciting times. Our dynamic joint efforts consisting of a combination of employees from all the sectors have allowed the company to move forward through thick and thin with a supportive and dynamic Management at the helm.

We are hoping 2022 will be a year with new challenges and plenty of opportunities to take advantage of such as business development, product development and strengthening talent pool with skilled manpower among other things. So, we are hopeful that this will be a more productive year for Renata.

Going forward we expect a COVID-19 free world. Please stay safe and healthy!

NEWCOMERS

Renata strengthened manpower in the second half of 2021. (Jul 2021- Dec 2021)

Area of Operation

No’s

Sales Pharma

352

Animal Health

30

Manufacturing

63

Project

34

Quality Assurance

70

R & D

17

Operations

28

Purnava Limited

18

Life @ RENATA

Breast Cancer Awareness Month

October is the Breast Cancer Awareness month. It is the Females who are at the brim of breast cancer risk. Approximately 0.5-1% of breast cancers occur in men. The treatment of breast cancer in men follows the same principles of management as for women. If breast cancer is found early, there are more treatment options and a better chance for survival. In Renata we observed the Breast Cancer Awareness month through sharing Breast Cancer Awareness related materials, which included Breast Self-Checking Tutorial, The Breast Health Guide eBook and contact information of some hospitals which provide Breast-Screening Facility (Dhaka) and arranged awareness sessions on Breast cancer in order to raise awareness among our employees. Early Detection Saves Lives. Stay Aware, Stay Safe.

International Men’s Day

On November 19 International Men’s Day is celebrated worldwide, acknowledging the positive value men bring to the world, their families and communities. One of the six pillars of International Men’s Day is to improve gender relations and promote gender equality not only for men but for women too. Renata Limited celebrated International Men’s Day, where both male and female colleagues were present. At our beautiful Renata Park, employees from different departments performed and had a meet and greet gathering and enjoyed a warm afternoon.

World Mental Health Day

Renata Limited observed World Mental Health Day on October 10, 2021, at its Corporate Headquarters. The Renata Park was beautifully decorated and various engaging activities were arranged for the employees. These activities were especially designed keeping in mind how they help combat the anxiety and stress of our lives. These included painting, clay corner, spinning wheel game, chair yoga, etc. These creative therapeutic activities and meditation help to release the brain’s happy chemicals and revive mental health. In addition, as a part of the day long program, the Renata Limited Facebook Page went live with a discussion program with expert guest speakers on the importance of prioritizing mental health.

Expanding International Presence

Mr. Hossain Al Enam, Senior Assistant Manager, IBD

Indeed, 2021 was a challenging but inspiring year for the International Business Division. Right now, IBD has been undergoing extensive business development activities which require frequent movement all over the world. Due to the Covid pandemic, international traveling was almost impossible and tiresome which eventually hindered client and country visits, one integral part of international business establishment. In many countries, our partners weren’t able to perform marketing and promotional activities at a larger scale. Like other top exporting pharmaceutical companies in Bangladesh, we didn’t have a molecule like Remdesivir, an antiviral medicine approved by the US FDA for treating Covid patients. Despite all those challenges, we have secured double-digit export growth along with several new contracts for some territories all around the globe.

In 2021, Renata initiated several strategic decisions. Establishing another R&D arrangement for the Rest of the World (ROW) is a landmark initiative. With the help of all the R&D facilities, now we can and will respond to market demand across all the continents with a larger basket of molecules. Many more development activities are going on in many territories, especially in Sri Lanka, Nepal, and Myanmar where dedicated sales teams are working extensively to market Renata’s molecule.

North America holds 49% share of the total pharmaceutical market of the entire globe. Emphasizing the importance of the US market, Renata now successfully owns Abbreviated New Drug Application (ANDA) for a few molecules and expects to launch these products by 2022 & 2023. Another milestone for Renata is that we have applied for Health Canada and expecting to receive both GMP clearance and product registration by the 3rd quarter of 2022 to start our operations in Canada. We tied up with another partner to get into the Russian market; one of the large segments of Europe, the entrance of the Russian market will benefit us to explore Eurasian and Commonwealth of Independent States (CIS) later on. We have tied up with Singapore as well which is one of the prestigious markets of Southeast Asia to operate in.

IBD is self-motivated and energized to overcome all the obstacles and challenges that may come in the way of its journey. The experienced and young leadership have been trying to implement new ways to establish and expand business across all the continents. In the international pharmaceutical market, possibilities are endless whereas obstacles and challenges are also countless. The International Business Division is

committed and determined to establish Renata as a global name and

an example in the pharmaceutical business all over the world.

Pharma on a Tk1 Trillion Journey

(Continued from pg.1) “The developed markets are the next logical stop for our pharma growth train. Pharmaceutical products have a long way ahead to become a major export player.” Renata, the descendant of Pfizer Bangladesh, opened a subsidiary company in Ireland after Brexit. ACI opened a US subsidiary to facilitate their export and Beximco’s stock listing in London’s over the counter market made it the only Bangladeshi share to be traded abroad. Square Pharmaceuticals, the market leader, has built a factory in Kenya to compete in the $300 billion East African market. Vaccine facility of Incepta, the second largest pharmaceutical player of the country has been well praised by experts. Beacon Pharmaceuticals has built its image as a major oncological drug maker in the country.

M Shafiuzzaman, secretary to the Bangladesh Association of Pharmaceuticals Industries, said local companies are exporting their products to 151 countries of the world, which may be a benchmark for many others. “A few companies have already left giant footprints in US and UK markets and are expanding their reach every day while around 1,000 products are going to be registered in the international market for subsequent export, which will unlock huge potential.”

TRIPS adherence may not affect the industry massively

Waiver from the World Trade Organization’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement as a least developed country has been the most important aspect behind the Bangladesh pharmaceutical industry’s growth and the facility will expire after 2032 as the country is graduating its economic status up. Bangladeshi drug makers will be allowed to develop generic versions of the patented drugs until 2033 and even after that the TRIPS adherence is unlikely to affect the industry massively as over 85% of the generic drugs produced now by the industry are off-patent ones, which need no royalty payment to patent owner companies. The slowed down pace in drug patent registration globally is unlikely to change the scenario drastically, especially for widely consumed medicines.

“Even being TRIPS compatible after 2032, the availability and price of generic drugs might remain unaffected,” it added. The portion of drugs under patents will face a massive surge in price and under those circumstances Bangladesh can utilize some TRIPS flexibilities through incorporation of proper legislation into national laws. Parallel importation of patented drugs which allows imports without patent owner’s consent, compulsory licensing to companies by a local authority to produce patented drugs’ generic version and meet local demand during certain understandable situation, and using the patented drug formula as soon as the patent expires are the flexibilities within TRIPS the industry may enjoy after 2032.

Backward linkage

The Bangladesh pharmaceuticals industry currently uses 97% of its raw material called active pharmaceutical ingredients (API). The API Industrial Park in Munshiganj is expected to start production in the next year to reduce the import dependency to 80% by 2032. It is not sure if the 27 companies securing plots there can deliver as per plans. However, still, the 80% dependency on imported API will pose an external supply shock for the pharmaceutical industry. If drug makers themselves produce APIs, they might secure a decent gross profit margin in various business contexts. “Bangladesh is not a country that permits the pharmaceutical industry to charge exactly what the market will bear. Our drug regulators always put consumers before manufacturers,” said Masum Alvi Chowdhury, stressing the need for cost control by the companies.

Source: The Business Standard, October 03, 2021

Algin Has Achieved

Tk100 Crore Milestone

In 2021

Over the last 15 years, Algin has become the most prescribed antispasmodic of Bangladesh. Doctors are prescribing Algin as a reliable solution for relieving visceral pain of their patients. Visceral pain mainly occurs in the pelvis, abdomen, chest or in intestines in response to activation of pain receptors in these areas. Algin is used for symptomatic treatment of pain related to functional disorders of the digestive tract and biliary system. It is also given in the treatment of pain in the urinary tract and in gynecology. Algin is available as Tablet, Syrup and Injection. In adults, the usual dosage is 2-6 tablets per day in divided doses. Algin Syrup can be given to infants above 6 months of age, at a dosage of 3 teaspoonfuls for each 5 kg body weight per day in divided doses.

Algin (Generic: Tiemonium), is one of the prominent brands of Renata in the pharmaceutical market. In 2021, Algin, became the second brand of Renata that has touched taka 100 Crore milestone. This is definitely a great success for Renata in 2021.

Updated Renata Code of Conduct

Renata has updated the Code of Conduct. The updated version of RENATA CODE OF CONDUCT is now available in the EMPRESS HRIS.

INTRODU CING

The Renata HR Division has introduced RenaLearn, which is an E-Learning platform for Renata Limited employees. It’s a unique space where our employees can share and learn regarding different topics and interact with each other where distance is no longer a challenge. RenaLearn can be accessed from any computer that has access to EMPRESS HRIS.

Through RenaLearn, users can access a wide range of materials such as e- learning courseware, e-books, video based and interactive case studies, simulations, etc., in diverse professional areas.

This platform helps learners with the

following convenience and flexibilities-

 Learning is self-paced – can be completed at learner’s own schedule  Resources are available 24/7 and can be accessed as many times as needed even after once completed at any time

 Access from anywhere, be it home, work or elsewhere on the move from your computer.

What We Know about Omicron?

COVID infections are rising again as the Omicron variant emerges in nearly 89 countries.

WHAT IS THE OMICRON VARIANT?

The omicron variant is a new, mutated strain of the COVID-19 virus, which was first reported in South Africa in late November. After it was identified, the World Health Organization classified it as a “variant of concern” as scientists continued to research its effects.

THE OMICRON VARIANT MORE SPREADABLE?

The omicron variant is likely more transmissible than the original strain of COVID-19, according to the CDC (Centers for Disease Control and Prevention) USA. CDC expects that anyone with Omicron infection can spread the virus to others, even if they are vaccinated or don’t have symptoms.

DOES THE OMICRON VARIANT HAVE MORE SEVERE SYMPTOMS?

A recent study from South Africa showed omicron seems to cause less serious illness than other COVID-19 variants. Experts maintain; however, it is too early to be sure. According to the World Health Organization, the symptoms are similar to other strains of COVID-19.

IS THE VACCINE STILL EFFECTIVE AGAINST THE OMICRON VARIANT?

Scientists are still determining the effectiveness of the COVID-19 vaccines against the omicron variant. CDC officials expect that the vaccine will protect against severe illness, hospitalizations and deaths. However, they say it is likely that breakthrough infections will occur.

WE HAVE THE TOOLS TO FIGHT OMICRON

VACCINES, SOCIAL DISTANCING, HAND WASH & MASKS are the only way to protect ourselves. Health officials suggest getting not only the COVID- 19 vaccine but also, a booster shot if you are eligible.

We have to remember that a new variant of Covid-19 has already knocked on our doors. In such a situation, self-awareness and self- discipline are our strengths in the fight against this variant of Covid-19. Only our collective strength will defeat Corona and it is this very sense of responsibility we have to follow again in 2022.

Off Topic:

  • The trouble with doing something right the first time is that nobody appreciates how difficult it was.
  • Stress is when you wake up screaming and you realize you haven’t fallen asleep yet.

Renata Insight Issue 14 January 2022

Editorial Committee:

Corporate Headquarters

Ms. Nisbat Anwar, Head of Human Resources

Plot # 1, Milk Vita Road,

Section # 7, Mirpur,

Mr. Anupom Chowdhury, Deputy Manager-HR

Dhaka- 1216

Mr. Syed Saheeb Ahmed, Senior Assistant Manager-HR

Bangladesh

www.renata-ltd.com

Follow us @ www.facebook.com/RenataLimited

Disclaimer

Renata Limited published this content on 01 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 February 2022 08:21:04 UTC.

Publicnow 2022

All news about RENATA LIMITED

Sales 2022 32 049 M
378 M
378 M
Net income 2022 5 799 M
68,5 M
68,5 M
Net Debt 2022

P/E ratio 2022 24,6x
Yield 2022 1,26%
Capitalization 144 B
1 691 M
1 704 M
Capi. / Sales 2022 4,51x
Capi. / Sales 2023 3,94x
Nbr of Employees 8 957
Free-Float 86,1%



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Renata Limited Technical Analysis Chart | MarketScreener



Income Statement Evolution

Sell

Buy

Mean consensus UNDERPERFORM
Number of Analysts 3
Last Close Price
1 332,30 BDT
Average target price
1 142,03 BDT
Spread / Average Target -14,3%


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