The state-owned Essential Drugs Company Limited (EDCL), long plagued by irregularities, corruption, and mismanagement, is showing signs of recovery under new leadership.

Once burdened by losses worth billions of taka due to overpriced raw materials procured through syndicated tenders, unusable machinery, and excessive manpower, the company is now beginning to turn around following reforms initiated in recent months, according to a press release issued Saturday.

Newly appointed Managing Director (MD) Samad Mridha has declared a zero-tolerance policy against corruption and inefficiency, vowing to restore accountability and productivity within the institution.

Since the reform drive began, EDCL has introduced transparency in the tender process, cut production costs by reducing manpower and raw material expenses, ramped up production, and minimised unnecessary overtime.

The company had earlier faced severe criticism for financial mismanagement. An audit report for the 2019-20 fiscal year found losses of Tk32 crore from ineffective equipment and failed projects.

Production of key antibiotics was halted due to tender complications, while idle machinery, including two units at the Dhaka plant and a saline and contraceptive project in Gopalganj, remained unused for over three years, causing financial losses exceeding Tk25 crore.

In addition, the High Court had ordered an investigation into Tk477 crore worth of corruption and 32 irregularities in the company. The Anti-Corruption Commission (ACC) also carried out a raid at EDCL in February 2025.

Despite this troubled past, the company has recently taken several measures to regain public confidence. One of the most notable achievements is a historic reduction in medicine prices. For the first time in EDCL’s history, prices of 33 essential drugs – including antibiotics, gastric ulcer medicines, painkillers, and asthma treatments – have been cut by up to 50%.

Of these, 22 are widely used in rural health centres, which officials say will make healthcare more affordable for underserved communities.

EDCL has also launched new production initiatives. A third-generation birth control pill and a saline production unit have already been introduced.

Additionally, 40 acres of land in Sirajdikhan, Munshiganj, have been allocated for a state-of-the-art facility designed under FDA guidelines. Planned projects include a vaccine plant and an anti-venom production factory. Workforce restructuring has been another major step in the turnaround. Excess manpower had long strained the company’s finances, and the new management has already laid off 722 employees.

Mridha confirmed that over 1,000 more staff may be released as part of the ongoing reforms to cut costs and improve efficiency.