Beximco Pharmaceuticals Ltd

Version 3.7 by Md. Touhidul Islam on 2021/12/11 07:32

Contents

Company Overview
The acquisitions of Beximco Pharma
Financial performance:

Company Overview

Beximco Pharmaceuticals Ltd. is one of the leading drug manufacturers and exporters in Bangladesh. Based in Dhaka, the company is a part of Beximco Group and playing an active role in the pharmaceuticals industry of the country. The company was founded in 1976 and started its operation in 1980.¹ The company started manufacturing its own products under proper licensing in 1980 and prior to that it used to import products from Germany and USA. In 1983 the company launched its own formulation brands and put a step ahead in the journey.

Currently, the company is holding the third position in the pharmaceuticals industry of Bangladesh with an 8.39% market share (based on profit).² Its major competitors are Square Pharmaceuticals (16% market share), Incepta (10.21% market share), and Opsonin (5.54% market share). Right now, Beximco Pharma employs more than 4,700 people. The company is currently producing 300+ generic medicines. The company’s portfolio includes antibiotics, analgesics, anti-diabetic, respiratory, cardiovascular, dermatology, gastrointestinal, and more.

Beximco Pharmaceuticals Ltd. has a presence in more than 80 countries and it has expanded its global consumer base through exporting in some highly regulated markets in the last decade. In 2018-19 fiscal year, the export earnings of Beximco Pharmaceuticals Ltd. amounted to 32.46 million USD - the highest among other companies in the country that year. Moreover, Beximco pharma is the first-ever pharmaceutical company in Bangladesh that has explored the US market in 2016. The company has also introduced the world's first generic remdesivir for Covid-19 treatment in 2020.

Beximco Pharma has made its share market debut in 1985 by getting listed in Dhaka Stock Exchange (DSE). Currently, the company is also listed on Chittagong Stock Exchange (CSE) – second of the two stock exchanges of the country, and Alternative Investment Market (AIM) at London Stock Exchange.

The company has a mission to enhance human health and well-being through providing contemporary and affordable medicines while maintaining global quality standards. Moreover, the company has a vision of becoming the most trusted, admired, and successful pharmaceutical company in the region. Beximco is determined to attain this standard through strengthening research and development capabilities and building a strong presence in the global market.

Beximco has achieved several national and international awards for its outstanding contribution to the pharmaceutical industry of Bangladesh. It is the only Company in the region that won the highly prestigious SCRIP Award as the “Best Pharma Company in an Emerging Market”³ and also the Global Generics and Biosimilars Awards 2021 in the category of Company of the Year, Asia Pacific.⁴

The acquisitions of Beximco Pharma

Beximco Pharma had acquired an 85.22 percent stake in Nuvista Pharma in 2018. ⁵ Nuvista Pharma is a leading manufacturer of hormonal drugs and steroids in Bangladesh. Nuvista Pharma was a subsidiary of Netherlands-based Organon Holding BV. in 1973 the company was incorporated as Organon (Bangladesh) Limited. Later on, Organon Holding BV divested its shares in Organon (Bangladesh) Limited to the local management, and accordingly, the name of the company was changed to Nuvista Pharma Ltd. The company manufactures different pharmaceutical products such as oral contraceptives, hormones, antihistamines, steroids, and so on. Nuvista generated 171 crore BDT in revenue, 11.8 crore BDT in profit before tax, and 54.8 crore BDT worth net assets in FY 2016-17. The 12.92 percent stake of Nuvista is owned by the Govt. of Bangladesh.

The two companies (Beximco Pharma and Nuvista Pharma) signed a non-binding Memorandum Of Understanding (MOU) on October 5, 2017 to work through the acquisition process, which had been finalised on January 18, 2018. This is the first-ever acquisition in the history of the pharmaceuticals industry of Bangladesh. sanofi bangladesh ownership structure

Again in 2021, Beximco pharma acquired the majority stake (54.6 percent) of Sanofi Bangladesh – a multinational pharmaceutical company. In Bangladesh, Sanofi started its operation in 1958 as “May and Baker” which was renamed “Sanofi Bangladesh Ltd.” in 2013. The company had generated 388 crore BDT in revenue, 49.79 crore BDT in profit before tax, and 609 crore BDT worth of gross assets as of 2019.

The acquisition has cost Beximco Pharma up to 400 crore BDT which is the biggest takeover in the Pharma Industry of the country so far. Regarding the acquisition, Nazmul Hassan MP, managing director of Beximco Pharma, expressed that Beximco Pharma has a proper strategy to continue its diversification and expansion while establishing the company as a leading pharma company in the region. He also added that the acquisition is a part of their growth strategy. ⁶

Financial performance:

Beximco Pharmaceuticals Ltd. has made BDT 370.60 crore profit in the first nine months of the 2020-2021 financial year which is a 41.28% increase from the same period of the last year (BDT 262.31 crore).⁷ The company’s Earnings Per Share (EPS) for the 2020-2021 financial year was BDT 8.23, while it was 5. 84 in the last year. The net profit of the company in the last quarter of 2020-2021 financial year was BDT 147 crore while it was BDT 90.92 crore for the same period last year. Beximco Pharma’s net asset value (NAV) was BDT 82.28 for the year ended on June 30, 2021, while it was BDT 79.78 last year.⁸