Last checked at 6 Oct 2017 07:00
06 October 2017
BEXIMCO PHARMACEUTICALS LTD.
Beximco Pharma signs a non-binding Memorandum of Understanding to acquire a majority stake in Nuvista Pharma in Bangladesh
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 it has entered into a non-binding Memorandum of Understanding ("MoU") under which Beximco Pharma may acquire a majority shareholding (85.22%) in Nuvista Pharma, a leading pharma company in Bangladesh specialising in hormones and steroid drugs (the "Proposed Acquisition").
The Proposed Acquisition, which is likely to be a substantial transaction under the AIM Rules for Companies, remains subject to due diligence and negotiation and completion of a definitive Sale and Purchase Agreement. It is anticipated that the Proposed Acquisition would complete by the end of December 2017.
Nuvista Pharma, formerly Organon (Bangladesh) Ltd., was a subsidiary of Netherlands based Organon International. It was sold to the current Bangladeshi management in 2006. The Company has been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. They also have a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme (MSD). In the six months to 30 June 2016 (the last audited accounts prepared by Nuvista Pharma), the company generated Revenue of BDT 0.75 billion, profit before taxation of BDT 36 million and had Net Assets of BDT 0.43 billion. The consideration for the Proposed Acquisition would be satisfied in cash.
The Directors believe that the Proposed Acquisition will, if completed, accelerate revenue growth and improve the earning potential for Beximco Pharma. However, the Company would restate that there is no guarantee that the Proposed Acquisition will complete at this stage as it is still subject to due diligence and negotiation.
Further announcements will be made by the Company as appropriate.
Beximco Pharma Managing Director, Mr Nazmul Hassan MP, commented:
"We believe that this Proposed Acquisition, whilst relatively small compared to Beximco Pharma, will serve as a strong foundation for sustainable growth in the future as well as being the first in our Company's history. In our view, Nuvista is a good strategic fit for Beximco Pharma as their strong position in hormones and steroids, with a unique portfolio of 50 generics, complements our existing product range."
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 / Sean Wyndham-QuinTel: +44 (0)20 3368 3551 / 3555
Northland Capital Partners Limited (Broker)
Patrick Claridge Corporate Finance
Tel: +44 (0)20 3861 6610
Bob Pountney Corporate Broking & Sales
Tel: +44 (0)20 3861 6617
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 3,500 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.