Beximco Pharmaceuticals Limited — a pharmaceutical giant in the country – has entered into a share purchase agreement to acquire 54.6% shares into Sanofi Bangladesh — a multinational drug-maker.
Beximco Pharmaceuticals made the disclosure on Tuesday.
Beximco Pharmaceuticals will acquire the majority stake in Sanofi Bangladesh at a cost of Tk480 crore.
On 21 January 2021, the management of Beximco Pharma had decided to enter into a binding commitment with Sanofi Group regarding the acquisition of a majority stake in Sanofi Bangladesh.
Earlier in 2018, Beximco Pharmaceuticals also acquired a majority stake in Nuvista Pharma (formerly Organon Bangladesh), a leading hormone and steroid manufacturer in the country.
On 2 September, the foreign exchange investment department of the Bangladesh Bank approved the acquisition deal of acquiring and transfer of 54.6% stakes of Sanofi Bangladesh.
The remaining 45.4% shares of Sanofi Bangladesh are held by the Bangladesh government through the Bangladesh Chemical Industry Corporation (BCIC) and the Ministry of Industry.
The BCIC holds approximately 20% shares and the Ministry of Industry 25.4% of Sanofi Bangladesh.
In its disclosure, Beximco Pharma said that the proposed earnings accretive acquisition is in line with its strategy to expand its capabilities and product offering into new speciality therapy areas.
The acquisition deal will enable the company to consolidate its position as a leading pharmaceutical in Bangladesh by adding an established business with a reputation for high-quality products.
About Sanofi Bangladesh
As per disclosure, Sanofi Bangladesh has been part of Sanofi SA ("Sanofi"), a global biopharmaceutical company focused on human health.
The operations in Bangladesh were established in 1958 as part of the British chemical company, May & Baker.
Following a series of mergers, it became known as Sanofi-Aventis in 2004, before being renamed in 2013 as Sanofi Bangladesh Limited.
Sanofi Bangladesh produces approximately 100 generic products and has a strong presence in cardiology, diabetes, oncology, dermatology, and CNS.
According to the last audited accounts prepared by Sanofi Bangladesh, in 2020, it generated Tk304 crore and profit before tax Tk27.76 crore.
Sanofi Bangladesh had gross assets of Tk640 crore.
About Beximco Pharmaceuticals
Beximco Pharmaceuticals—a leading manufacturer and exporter of medicines – started its journey in 1976.
According to the company, its operation started by importing products from Bayer, Germany, and Upjohn, USA, and selling them in the local market.
In 1980, Beximco Pharma began manufacturing these products under licensing arrangement and in 1983 launched its own formulation brands.
It produces more than 300 generics available in well over 500 presentations and also produces a number of active pharmaceutical ingredients (APIs).
The manufactured products are now being exported to more than 50 countries including the USA, Europe, Canada, and Australia.
In the last 2019-2020 fiscal, its sales revenue stood at Tk2561.19 crore – domestic sales Tk2286.01 crore, and export sales Tk275.18 crore. After paying tax, its net profit stood at Tk354.44 crore for FY20.
In the first nine months of 2020-2021, its net revenue stood at Tk2176.24 crore and net profit Tk369.52 crore.
The revenue for July-March FY21 is around 13.90% and profit 40% higher compared to the same time of the previous fiscal year.