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Beximco Pharma acquires majority stake in Nuvista Pharma

  • Published at 11:01 pm April 4th, 2018
Beximco Pharma acquires majority stake in Nuvista Pharma
Beximco Pharmaceuticals Ltd has completed the acquisition of a majority shareholding (85.22%) in Nuvista Pharma (formerly Organon Bangladesh Limited), a leading pharmaceutical company in Bangladesh specializing in hormones and steroid drugs. The two companies endorsed a non-binding Memorandum of Understanding (MoU) on October 5, 2017 for the proposed acquisition, which was mutually agreed upon and finalized on January 18, 2018. This is the first acquisition in the history of country’s pharmaceutical industry, and to mark this occasion a brief ceremony was held at Radisson Blu Dhaka Water Garden in the presence of Industries Minister Amir Hossain Amu MP and other high officials from various government bodies, banks, pharmaceutical industries, and drug regulatory authorities along with senior officials from Beximco Pharma and Nuvista. Amu praised the pharmaceutical industry’s rapid progress and its important contribution to the country’s economic development. He expressed hope that such initiatives would open up new avenues of opportunity for the growth of the pharmaceutical industry. He mentioned various initiatives taken by the government to support the growth of the pharmaceutical industry and realize its massive export potential. Beximco Group Vice Chairperson Salman F Rahman, Managing Director of Beximco Pharma Nazmul Hassan MP, and Chairperson and Managing Director of Nuvista Pharma Akhter Matin Chaudhury also spoke at the occasion. Nazmul Hassan MP said: “We are proud to be the first company in the country’s pharmaceutical industry to employ acquisition as a part of our growth strategy. The completion of the Nuvista acquisition will serve as a strong foundation for sustainable growth in the future by strengthening our position in hormones and steroids.  We believe Nuvista’s unique portfolio will complement our existing product range and enhance near term revenue growth for the company.” Mergers and acquisitions have been a popular and effective strategy in the corporate world and they provide competitive advantages by creating synergy between two companies. They improve productivity and cost efficiency, expand the market, and help achieve faster growth and diversification. The global merger and acquisition market was valued at more than $3 trillion in 2017, with the pharmaceutical sector accounting for almost 10% of this.