Beximco Pharmaceuticals has entered into a non-binding Memorandum of Understanding, under which Beximco Pharma may acquire a majority shareholding of 85.22% in Nuvista Pharma
The Proposed Acquisition is likely to be a substantial transaction under the AIM Rules for Companies, but remains subject to due diligence and negotiation, and completion of a definitive sale and purchase agreement. It is anticipated that the proposed acquisition will be complete by the end of December 2017.
Nuvista Pharma, is a pharma company in Bangladesh specialising in hormones and steroid drugs. Formerly Organon (Bangladesh), the company 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. It also has a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme.
Between January and June 2016, 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 at Beximco Pharma believe that the Proposed Acquisition will, if completed, accelerate revenue growth and improve the company’s earning potential. However, it should be noted that there is no guarantee that the proposed acquisition will complete at this stage as it is still subject to due diligence and negotiation.
Beximco Pharma Managing Director, Mr Nazmul Hassan MP, said: "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.”