Beximco Pharmaceuticals has announced it may buy 85.22 percent share in Nuvista Pharma to strengthen its position in hormones and steroids segments.

Beximco Pharmaceuticals entered into a non-binding memorandum of understanding with the hormones and steroid drugs-maker at a programme in Dhaka on Thursday.

Nazmul Hassan, managing director of Beximco Pharma, and Akhter Matin Chaudhury, chairman of Nuvista Pharma, signed the primary deal.

The proposed acquisition remains subject to due diligence and negotiation and completion of a definitive sale and purchase agreement.

It is expected that the proposed acquisition will be completed by the end of December, said Beximco Pharma in a statement.


“The directors believe that the proposed acquisition will, if completed, accelerate revenue growth and improve the earning potential for Beximco Pharma,” according to the statement. 

Hassan said: "We believe that the proposed acquisition would be the first in our company's history and will serve as a strong foundation for sustainable growth in the future.”

“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.” 

Nuvista Pharma, formerly Organon (Bangladesh) Ltd, 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. The company's share price rose nearly 3 percent to Tk 108.9 on Thursday.

_{Source: thedailystar.net}