Beximco Pharmaceuticals has completed accusation of 85.22 per cent stake in Nuvista Pharma to strengthen its position in hormones and steroids segments.
“The board of directors of Beximco Pharma has considered and approved the acquisition of 10,013,474 ordinary shares of Tk 10 each being 85.22 per cent shareholdings of total capital in Nuvista Pharma in terms of the decision of the shareholders of the company in its AGM,” said a disclosure posted on the Dhaka bourse website on Tuesday.
The government of Bangladesh currently holds 12.92 per cent stake in Nuvista Pharma Limited.
In October last year, Beximco Pharmaceuticals entered into a non-binding memorandum of understanding with the hormones and steroid drugs-maker at a programme.
Nazmul Hassan, managing director of Beximco Pharma, and Akhter Matin Chaudhury, chairman of Nuvista Pharma, signed the primary deal in October last year.
The directors believe that the acquisition will accelerate revenue growth and improve the earning potential for Beximco Pharma.
The acquisition is the first in the company’s history and will serve as a strong foundation for sustainable growth in the future, they said.
Nuvista Pharma, formerly Organon (Bangladesh), was a subsidiary of the 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 plant in Tongi. It has a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme.
Currently Nuvista Pharma is the 21st largest supplier to the market by volume, according to the QuintilesIMS second quarter data of the retail pharma market in Bangladesh this year.
Founded in 1976, Beximco Pharma manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients.
Beximco Pharma is listed on Dhaka Stock Exchange in 1986. The company’s share price closed at Tk 106.80 on Monday.
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