TIDMBXP
RNS Number : 8727S
Beximco Pharmaceuticals Ltd
06 October 2017
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 Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 58611001, ext.20080
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady / Sean Wyndham-Quin
Tel: +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 Consulting
Simon 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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