Bangladesh’s leading medicine producer Beximco Pharmaceuticals Limited yesterday announced that it has entered into a non-binding Memorandum of Understanding (MoU) under which Beximco may acquire a majority shareholding (85.22%) in Nuvista Pharma, a leading pharmaceutical company in Bangladesh specialising in hormones and steroid drugs. The proposed acquisition remains subject to due diligence and negotiation and completion of a definitive sale and purchase agreement.
It is expected that the proposed acquisition will be completed by the end of December 2017, according to a press statement.
Nazmul Hassan MP, managing director of Beximco Pharma, and Akhter Matin Chaudhury, chairman of Nuvista Pharma, signed the MoU yesterday. High officials from both companies were present during the signing ceremony held at Beximco Pharma head office in Dhaka. Nuvista Pharma, formerly Organon (Bangladesh) Ltd., was a subsidiary of Netherlands-based Organon International.
It was sold out 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). According to the Quintiles IMS Q2 2017 data of the retail pharma market in Bangladesh, Nuvista Pharma currently ranks as the 21st largest supplier to the market by volume. The directors believe that the proposed acquisition will, if completed, accelerate revenue growth and improve the earning potential for Beximco Pharma, the statement added.
Beximco Pharma Managing Director, Nazmul Hassan MP, commented: “We believe that this proposed acquisition, would be the first in our company’s history and will serve as a strong foundation for sustainable growth in the future. In our view, Nuvista Pharma 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.” The company shall make further announcements on progress as appropriate, the statement also said. (Source: The Independant)