Beximco Pharmaceuticals, manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, announced it has acquired a majority stake in Nuvista Pharma, a leading pharma company in Bangladesh specialising in hormones and steroid drugs
Beximco Pharma has entered into share purchase agreements with six shareholders with an aggregate shareholding of 85.22% in Nuvista. These shareholders are Akther Matin Chaudhury, Maliha Chaudhury, Arneeb Majed Chaudhury, Kanai Lal Saha, Asif Ahmed and Rahbar Alam Anwar.
The total consideration for the acquisition has been agreed at a maximum of Taka 2,100,000,000 (approximately £18.2 million), which is subject to adjustment and fulfilment of conditions precedent by each individual Vendor.
The final consideration will be paid in cash on completion of the acquisition, which is expected to occur on or before 28 February 2018.
Nuvista, formerly Organon (Bangladesh), was a subsidiary of Netherlands based Organon International. It was sold to the current Bangladeshi management in 2006.
Nuvista has been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. In addition, Nuvista has a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme (MSD).
In the year ended 30 June 2017 (the last audited accounts prepared by Nuvista), Nuvista generated revenue of BDT 1.71 billion, profit before taxation of BDT 118 million and had net assets of BDT 0.548 billion.
The Directors of Beximco Pharma believe the acquisition should accelerate revenue growth and improve the earning potential for the company. They also believe that Nuvista is a good strategic fit for the company as their strong position in hormones and steroids, with a unique portfolio of 50 generic products, complements Beximco Pharma’s existing product range.
Beximco Pharma Managing Director, Mr Nazmul Hassan MP, said: "The acquisition of a majority stake in Nuvista is an important milestone for Beximco Pharma, marking the first acquisition in the company’s history. It further strengthens our strong market position with Nuvista’s unique portfolio complementing our existing product range. The acquisition will serve as a strong foundation for sustainable future growth, as well as enhancing near-term revenue growth for the Company.”