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With the expiry of the contract, there had been no income from the source in the reporting period of FY23, it added.

Despite multiple challenges, some companies logged higher profits. Of them, the profits of Acme Laboratories rose 5 per cent to Tk 168 crore between July and March.

A top official of Acme Laboratories said the profit grew mainly as it benefitted from higher inventories.

“As a result, the price hike of raw materials did not impact our profits.”

“But the industry is struggling because of the higher costs and these impacted us as well. So, the profit grew at a slower rate than the previous year.”

The companies with a strong inventory were in a better position than those without, prompting some major drug makers to boost their stocks of raw materials and finished goods as they don’t expect the economic uncertainty at home and abroad to disappear anytime soon.

One of them is Renata, which had Tk 1,138 crore of inventories in March, up from Tk 849 crore in June.

Local companies are not witnessing lower profits alone. In fact, pharmaceutical companies around the world are staring at lower earnings.

According to a Reuters report in February, pharmaceutical companies that made billions from the pandemic over the past two years selling vaccines and treatments are now up against a steep Covid cliff and investor pressure to spend their windfalls wisely.

Company and analyst estimates suggest those sales could fall by nearly two-thirds this year due to built-up product inventories around the world, including in the countries that pay the most.