The state-owned pharmaceutical company, Essential Drugs Company Ltd (EDCL), which was earlier plagued by irregularities, corruption, and mismanagement for a long time, has started to turn around.
Through tender syndicates, purchasing raw materials at inflated prices in non-transparent processes, keeping machinery idle, and maintaining excess manpower - altogether the company had long been a cause of huge financial losses for the government.
In the past few months, however, the scenario has changed dramatically. Emerging from the grip of corruption, the company is now bringing positive news.
Upon taking charge, the new Managing Director, Samad Mridha, made it clear that there would be no place for corruption or incompetent manpower in the company.
Under his leadership, after the initiation of reform activities, EDCL has restored transparency in the tendering process and reduced production costs by cutting unnecessary manpower.
Earlier, the audit report for the 2019-20 fiscal year revealed a loss of about Tk 32 crore in EDCL due to ineffective equipment and failed projects alone.
In addition, the production of important antibiotics was halted for a long time due to tender complications. Two machines at Dhaka, saline and contraceptive project at Gopalgonj not used more than 3 years caused financial losses exceeding 250 million taka.
In addition, the High Court had ordered an investigation into the company for corruption worth Tk 477 crore and 32 irregularities. In February 2025, the ACC conducted a raid on the company.
EDCL has taken several steps to overcome this situation and restore its image.
EDCL's major achievement is reducing the prices of medicines. This is the first time in the company's history that the prices of medicines have been reduced and the prices of 33 essential medicines have dropped by up to 50 percent recently.
The list of essential medicines to be reduced in price includes Omeprazole capsules for gastric ulcers, Ketorolac injections for pain, various antibiotics for pneumonia and bacterial infections (such as Ceftriaxone and Ceftazidime), and Montelukast tablets for asthma.
The prices of 22 out of 32 medicines listed for healthcare services, especially for rural populations, have been reduced, which will make medical services more accessible in rural health centers.
A large portion of the company's expenses have been spent on excess and unnecessary manpower. The new management has eliminated more than 722 employees in one fell swoop. This has reduced administrative costs and increased efficiency.
Managing Director Samad Mridha said that as part of the restructuring process, about 722 unnecessary and inefficient employees have been laid off. In addition, the process to cut more than 1,000 additional staff members is ongoing.
EDCL has already launched a third-generation birth control pill and saline production unit. 40 acres of land have been allocated to set up a state-of-the-art EDCL as per FDA guidelines, Vaccine project and Anti-Venom production factory in Sirajdikhan, Munshiganj.
