Beximco Pharma Regulatory News (BXP)

BEXIMCO PHARMACEUTICALS LTD.

2nd July, 2012

Annual General Meeting Statement

Beximco Pharmaceuticals Limited ("BPL" or "Company"; AIM Symbol: BXP) today announces that all resolutions put before shareholders at the Company's Annual General Meeting held on 30 June 2012 were duly passed.

The Annual Report for 2011 is available from the Company's website, which includes the audited accounts that were previously sent to shareholders and a review of operations for the year to 31 December 2011.

During the course of the meeting, Chairman of the Company, Ahmed Sohail Fasiur Rahman, made the following statement to shareholders:

Dear Shareholders,

On behalf of the Board, I am pleased to report another year of continued success for Beximco Pharma despite a very challenging business environment. The Bangladesh economy experienced a turbulent year marked by a significant devaluation of Taka against the US Dollar. This weakening commenced in the 4th quarter of 2010 and continued throughout 2011 resulting in an exchange rate of Tk.81.98 to the Dollar at the end of December 2011 against a rate of Tk. 70.90 a year earlier. Additionally, high domestic inflation and a resulting increase in prices of local materials, coupled to a shortage of liquidity available for the private sector (due to increased government borrowings) as well as an increase in interest rates made 2011 exceptionally challenging - especially given the backdrop of a struggling global economy.

I am very pleased to report that we successfully countered these challenges delivering solid growth in all key business areas and making significant progress towards accomplishing our strategic goal of building shareholder value.

Sales and Profitability

We maintained our record of uninterrupted growth, achieving a 21.6% increase in sales to Tk. 7,890.24 million (2010: Tk. 6,490.85 million). In 2011 we significantly enhanced our prescription share in sales of the formulation products and maintained, as expected, growth in all our key therapeutic segments. Sales of our Active Pharmaceutical Ingredients (APIs) also recorded a significant 37.1% growth to reach Tk. 486.91 million (2010: Tk. 355.24 million). However, its impact on the overall profitability of the company is currently low because of a low gross margin predominantly due to the high cost of import of intermediate materials to manufacture these APIs. In 2011 export sales grew by 18.1% to Tk. 390.32 million (2010: Tk. 330.54 million).

Along with sales growth, Beximco Pharma also achieved a marked growth in profit in 2011. Our pre-tax profit increased 23.2% to Tk. 1,677.85 million (2010: Tk. 1,361.53 million). Gross margin as percentage of sales however, slightly declined to 48% as against 48.9% for the prior period. This was due principally to a depreciation in the value of the Taka against the Dollar and the high level of domestic inflation. However, with our constant drive to contain costs and effective profit optimization strategies, the negative impact of rising cost on profit has been kept to the practicable minimum.

Overseas Business

Certification of the relevant manufacturing facility by the duly accredited authorities is the first step of the enduring process of the export of pharmaceutical products. Our manufacturing facilities have been approved by a number of major regulatory authorities. In 2011 we received GMP (Good Manufacturing Practice) accreditation from the Austrian Agency for Health and Food Safety (AGES) for our oral solid dosage and ophthalmic manufacturing facilities. This is another testimony of our manufacturing excellence and important progress towards achieving targeted exports into the regulated European markets.

During the year under review we registered 48 products in 8 countries including New Zealand, Azerbaijan, Kuwait, Singapore and Colombia.

At home we have received the prestigious National Export Trophy (Gold) for excellence in pharmaceutical export for the record fourth time. This is an endorsement of our commitment towards strengthening our presence in overseas market.

Research & Development (R&D) and New Products

We are continuously focused on strengthening our R&D capabilities. There have been a series of positive developments in the year under review. We have inducted in our existing pool of talent two highly experienced professionals from overseas.

Consistent to our continued drive to deliver quality products at affordable prices our R&D team successfully introduced 40 new generic formulations in 55 different dosage forms and strengths. During the year Beximco Pharma launched combination therapies such as NapaDol® (Paracetamol+Tramadol), Dinovo® (Naproxen+Esomeprazole) and Glipitia®M (Sitagliptin+Metformin). We also outsourced some R&D services to develop certain specialized products for regulated markets.

Investments for Sustainable Growth

A number of projects initiated in earlier years were completed and became commercially operational in 2011. Expansion of our state-of-the-art metered dose inhaler (MDI) plant has added significant further capacity raising the total manufacturing capacity to 20 million canisters. Two other projects, namely facilities for dry powder inhalers (DPI) and pre-filled syringe products were also successfully completed and became operational. Amino acid unit also started commercial operation in 2011. Facilities for liquid lyophilized products and powder for suspensions and sachets are nearing completion. Other projects are progressing as planned.

Beximco Pharma has always been a pioneer in adopting innovative technologies. This brings both sophistication and the potential to sustain growth to our business. Over the past couple of years we have made considerable investments in facilities and processes to improve productivity, drive growth and achieve excellence in operations. The results that we have achieved today were possible due to these farsighted investments in the past. There are avenues for further acceleration of our growth through diversification of our product portfolio into as yet un-explored therapeutic segments. A number of such projects that can drive future growth are in our investment plan. We are taking up projects to expand capacities and upgrade some of our existing facilities to meet the growing demand in the marketplace. We also need significant investment in R&D and overseas market development to realize the full potential of generic drug opportunities.

Alongside investment in manufacturing facilities, we are equally focused on investing in products, markets and most importantly our human resource to ensure both the sustainable growth of our business and a meaningful return for our valued shareholders.

Whatever we have achieved so far is the reflection of the exceptional efforts by the employees at Beximco Pharma. I would like to thank them all for their outstanding contribution and support in helping to deliver a very successful 2011 and creating the new opportunities for growth and performance in 2012 and beyond.

Before I conclude, I express my gratitude for your constant support over the years. I also take this opportunity to acknowledge, with appreciation, the support and co-operation that we have received from our stakeholders. I am confident that we are investing in the right areas, taking the right actions and building the right kind of culture. I firmly believe Beximco Pharma has an enduring role to play in meeting humanity's most important priority better health.

I look forward with great enthusiasm to our future.

Thank You All

A S F Rahman

Chairman

For further information please visit www.beximcopharma.com or enquire at:

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 861 9151, ext.2080

Md. Asad Ullah, FCS, Company Secretary

Tel: +880 2 8618220-1, Ext 1140

Libertas Capital Corporate Finance

Thilo Hoffmann

Tel: +44 (0)20 7569 9650

FTI Consulting

Simon Conway / Susan Stuart / Victoria Foster-Mitchell

Tel: +44 (0)20 7269 7169

Notes to Editors

About Beximco Pharmaceuticals Limited

Founded in 1976 and based in Dhaka, Bangladesh, BPL manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients. The Company manufactures and markets its own branded generics for almost all diseases. The Company also undertakes contract manufacturing for multinational pharmaceutical companies. The Company operates from a 20 acre site in Dhaka and currently employs over 2500 staff.

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 East Africa, Pacific Island and Central American countries and South East Asia, including Singapore and Hong Kong.