Beximco Pharma to acquire majority stake in Sanofi Bangladesh

Published : 21 Jan 2021 09:53 PM

Beximco Pharmaceuticals Limited on Thursday announces that it has signed agreement (binding commitment) to acquire a majority shareholding (54.6 percent) in Sanofi Bangladesh Limited (Sanofi Bangladesh), a concern of French pharmaceutical giant Sanofi with global sales in excess of Euro 36 billion in 2019. 

Sanofi Group currently holds 54.6 percent shares in the paid-up capital of Sanofi Bangladesh. The remaining shares are held by the Government of Bangladesh represented by the Ministry of Industries (approx. 25.36 percent) and Bangladesh Chemical Industries Corporations (approx.19.96 percent).

The Proposed Acquisition is subject to Bangladesh Government clearance (including necessary approval of the Transaction by the Foreign Exchange Investment Department and Bangladesh Bank) and completion of a definitive Sale and Purchase Agreement. It is anticipated that the acquisition would be completed within the next 3 to 9 months.

Sanofi is a multinational pharmaceutical company that started its operation in Bangladesh as May and Baker in 1958 and later, merged with various entities to form Sanofi-Aventis in 2004. In 2013, it was renamed as Sanofi Bangladesh Ltd.  The Company has a modern pharmaceutical plant located at Tongi to produce a range of products mostly to cater to the local market. Sanofi also supplies its global brands of vaccines, insulins and chemotherapy drugs to Bangladesh through direct imports. Sanofi has a strong presence in cardiology, diabetes, oncology, dermatology and CNS, and its portfolio includes global brands such as Lantus®, Apidra®, Fimoxyl®, Flagyl®, Avil®, Enterogermina®, etc. 

The acquisition of stake in Sanofi Bangladesh Limited is a strong strategic fit for Beximco Pharma, with the potential to generate opportunities for long-term value creation for both companies, providing a strong foundation for sustainable growth, as well as enhancing the Company’s corporate reputation within the global territories it operates.This acquisition will add value and drive future growth of the business primarily through adding Sanofi’s balanced and growing portfolio such as modern insulins, oncology, dermatology and vaccines where Beximco Pharma has limited or no presence; accessing state-of-the-art manufacturing facilities including a PIC/S certifiable manufacturing facility for the Cephalosporin antibiotics, which are spread over an area of c. 25 acres of land, located near Beximco Pharma’s manufacturing facility in Tongi; ensuring synergies between the two companies, and opportunities of introducing Sanofi’s future global brands in Bangladesh.

The addition of Sanofi Bangladesh’s balanced and growing portfolio, including opportunities to introduce Sanofi’s future global brands to Beximco Pharma’s existing portfolio will drive future growth of the business by expanding its addressable market, as well as reinforcing the Company’s commitment to ensure access to breakthrough therapies and affordable medicines. 

Beximco Pharma Managing Director Nazmul Hassan said, "We are delighted to announce the proposed acquisition of a majority stake in Sanofi Bangladesh. If approved, it will be the second strategic acquisition in the Company’s history, following that of Nuvista Pharma Limited (formerly Organon Bangladesh) in 2018. This acquisition of Sanofi Bangladesh will serve as a strong foundation for sustainable growth in the future through strengthening our position in therapy areas where Sanofi has a strong footing.  We believe the unique and diverse portfolio of Sanofi will complement our existing product range and will drive significant revenue growth for the Company.”  

Beximco Pharma is a leading pharmaceutical manufacturer and exporter in the country. The Company currently has a global footprint in more than 50 countries including the US, Europe and Australia. Shares of Beximco Pharma are traded in Dhaka Stock Exchange and its GDRs are listed on Alternative Investment Market (AIM) of London Stock Exchange (LSE).