Beximco Pharma Regulatory News (BXP)

8 August 2019

BEXIMCO PHARMACEUTICALS LTD.

Update on Dividend and Tax legislation changes

Beximco Pharmaceuticals Limited ("Beximco Pharma", "BPL" or "the Company"; AIM Symbol: BXP, LEI No. : 213800IMBBD6TIOQGB56), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces an update to its announcement of 18 July 2019 in relation to the new legislation in Bangladesh, which was introduced by the new Finance Act with effect from 1 July 2019, in respect of listed companies' future dividend distributions.

The National Board of Revenue in Bangladesh has recently issued clarification in relation to the new law which requires listed companies to distribute at least 30% of their earnings as dividends to shareholders. This clarification states that the new legislation will only become effective from the 2020-21 Tax Year (i.e. 1 July 2020 to 30 June 2021). Therefore, the first earnings of Beximco Pharma that will have to comply with the new law will be for the financial year ending 30 June 2020, where the dividend is declared after that date, and not before.

To clarify, as the "Tax Year" is the year following the year in which the income is earned, the implication of the 2020-21 effective date is that companies declaring their dividend for the financial year ending 30 June 2019 on or before 30 June 2020, such as Beximco Pharma, will not have to comply with the minimum 30% payout for this period.

The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

For further information please visit www.beximco-pharma.com or enquire to:

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 58611001, ext.20080

Md. Asad Ullah, FCS, Executive Director & Company Secretary

Tel; +880 2 58611891, +880 2 58612040, Ext 10140

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Andrew Emmott

Tel: +44 (0)20 3368 3551 / 3555

SP Angel Corporate Finance LLP (Broker)

Vadim Alexandre / Abigail Wayne

Tel: +44 (0) 20 3470 0470

FTI Consulting

Simon Conway / Victoria Foster Mitchell

Tel: +44 (0)20 3727 1000

Notes to Editors

About Beximco Pharmaceuticals Limited

Beximco Pharma is a leading manufacturer and exporter of medicines based in Bangladesh. Since its inception in 1976, the Company remains committed to health and wellbeing of people across all the continents by providing access to contemporary medicines. Company's broad portfolio of generics encompasses diverse 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. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies.

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 and it has a geographic footprint in more than 50 countries. More than 4,000 employees are driving the company towards achieving its aspiration to be among the most admired companies in the world.