Last checked at 19 Jan 2018 07:00
19 January 2018
BEXIMCO PHARMACEUTICALS LTD.
Acquisition of a majority stake in Nuvista Pharma Limited
Beximco Pharmaceuticals Limited ("BPL", "Beximco Pharma" or "Company"; AIM Symbol: BXP), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces that, further to the announcement made on 6 October 2017, the Company has acquired a majority stake in Nuvista Pharma Limited ("Nuvista"), a leading pharma company in Bangladesh specialising in hormones and steroid drugs (the "Acquisition"). Beximco Pharma has entered into Share Purchase Agreements ("SPAs") with six shareholders with an aggregate shareholding of 85.22% in Nuvista. These shareholders are Mr. Akther Matin Chaudhury, Mrs. Maliha Chaudhury, Mr. Arneeb Majed Chaudhury, Mr. Kanai Lal Saha, Mr. Asif Ahmed and Mr. Rahbar Alam Anwar ("the Vendors").
The total consideration for the Acquisition has been agreed at a maximum of Taka 2,100,000,000 (approximately £18.2 million), which is subject to adjustment and fulfilment of conditions precedent by each individual Vendor. The final consideration will be paid in cash on completion of the Acquisition, which is expected to occur on or before 28 February 2018.
Nuvista, formerly Organon (Bangladesh) Ltd., was a subsidiary of Netherlands based Organon International. It was sold to the current Bangladeshi management in 2006. Nuvista has been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. In addition, Nuvista has a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme (MSD). In the year ended 30 June 2017 (the last audited accounts prepared by Nuvista), Nuvista generated revenue of BDT 1.71 billion, profit before taxation of BDT 118 million and had net assets of BDT 0.548 billion.
The Directors of Beximco Pharma believe that the Acquisition should accelerate revenue growth and improve the earning potential for the Company. They also believe that Nuvista is a good strategic fit for the Company as their strong position in hormones and steroids, with a unique portfolio of 50 generic products, complements Beximco Pharma's existing product range.
Beximco Pharma Managing Director, Mr Nazmul Hassan MP, commented:
"The acquisition of a majority stake in Nuvista is an important milestone for Beximco Pharma, marking the first acquisition in the Company's history. It further strengthens our strong market position with Nuvista's unique portfolio complementing our existing product range. The acquisition will serve as a strong foundation for sustainable future growth, as well as enhancing near-term revenue growth for the Company."
Further announcements will be made by the Company as appropriate.
For further information please visit www.beximcopharma.com or enquire to:Beximco PharmaNazmul Hassan MP, Managing Director Tel: +880 2 58611001, ext.20080
SPARK Advisory Partners Limited (Nominated Adviser)Mark Brady / Andrew EmmottTel: +44 (0)20 3368 3551 / 3555
Northland Capital Partners Limited (Broker)
Tom Price
Tel: +44 (0)20 3861 6625
FTI ConsultingSimon Conway / Victoria Foster Mitchell Tel: +44 (0)20 3727 1000
Notes to Editors:
About Beximco Pharmaceuticals Limited
Founded in 1976 and based in Dhaka, Bangladesh, Beximco Pharma manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies. The Company operates from a 23 acre site in Dhaka and has manufacturing facilities for producing various drugs in different delivery systems such as tablets, capsules, liquids, semi-solids, intravenous fluids, metered dose inhalers, dry powder inhalers, sterile ophthalmic drops, prefilled syringes, injectables, nebuliser solutions, oral soluble films etc. Ensuring access to quality medicines is the powerful aspiration that motivates 3,800 employees of the Company.
Beximco Pharma′s state-of-the-art manufacturing facilities are certified by global regulatory authorities of USA, Europe, Australia, Canada, GCC and Latin America, among others. The Company's products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Sri Lanka, Nepal, Bhutan, Vietnam, Cambodia and Myanmar and in other markets overseas, principally in South East Asia, including Singapore, Thailand, Taiwan, Malaysia, Indonesia, Philippines and Hong Kong; Africa, including South Africa, Mauritius, Kenya, Ghana, Ethiopia, Uganda and Nigeria; Central Asia, including Azerbaijan; Middle East, including Kuwait and Jordan; Pacific Island countries; Latin and Central American countries; Europe, including Austria, Germany and Romania; Australia and North America, including the USA and Canada.