Beximco Pharmaceuticals Limited ("BPL", "Beximco Pharma" or "Company"; AIM Symbol: BXP), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces that it has entered into a non-binding Memorandum of Understanding (“MoU”) under which Beximco Pharma may acquire a majority shareholding (85.22%) in Nuvista Pharma Limited, a leading pharma company in Bangladesh specialising in hormones and steroid drugs (the “Proposed Acquisition”).

The Proposed Acquisition, which is likely to be a substantial transaction under the AIM Rules for Companies, remains subject to due diligence and negotiation and completion of a definitive Sale and Purchase Agreement. It is anticipated that the Proposed Acquisition would complete by the end of December 2017.

Nuvista Pharma, formerly Organon (Bangladesh) Ltd., 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. They also have a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme (MSD). In the six months to 30 June 2016 (the last audited accounts prepared by Nuvista Pharma), 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 believe that the Proposed Acquisition will, if completed, accelerate revenue growth and improve the earning potential for Beximco Pharma. However, the Company would restate that there is no guarantee that the Proposed Acquisition will complete at this stage as it is still subject to due diligence and negotiation. Further announcements will be made by the Company as appropriate.

Beximco Pharma Managing Director, Mr Nazmul Hassan MP, commented:
"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 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.” 

_{Source: http://www.beximco-pharma.com}