Beximco gets central bank nod to acquire Sanofi

The Bangladesh Bank recently approved Bangladeshi drug-maker Beximco to acquire 54.6% shares of Sanofi Bangladesh at Tk480 crore.

The Bangladeshi pharmaceutical company will take over the shares from Fisons Ltd and May and Baker Ltd of the UK – the two foreign shareholders of Sanofi Bangladesh. The two UK-based firms hold 19.63 lakh Sanofi shares, each at Tk2,445.

Beximco Pharmaceuticals Limited has already applied for Tk375 in loans from the state-run Agrani Bank for the leveraged acquisition. The drug-maker said it will pay back the loans in five years, while the interest rate can go up to 9%, according to Agrani Bank's letter to the central bank seeking approval for the loan.

Earlier on 20 January, Sanofi Bangladesh Ltd signed the acquisition deal with Beximco Pharma.

According to the terms of the central bank's acquisition approval to Beximco, the share transfer must follow the existing rules and regulations, all taxes and fees must be paid for the transfer and the bank that will take part in the transaction will be liable for bringing back the money if any flaw in asset calculation is found in future.

Beximco Pharma's Managing Director Nazmul Hassan said, "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."

The remaining 45.4% shares in Sanofi Bangladesh is owned by the Bangladesh government through the Bangladesh Chemical Industries Corporation (20%) and the Ministry of Industries (25.4%).

After Sanofi Bangladesh's share transfer, the company's science-backed high-quality products across various therapeutic areas including diabetes, cardiology, oncology, central nervous system, consumer healthcare, vaccines and hospital care will continue to be made available in Bangladesh through its local manufacturing facilities as well as imports.

Speaking on the transaction, Sanofi Bangladesh's Managing Director Muin Uddin Mazumder said, "We have carefully selected Beximco Pharma who will continue to build on Sanofi's legacy through investments and growing the business to provide more patients with increased access to Sanofi's products across Bangladesh.

"Together, we are committed to ensuring a smooth transition for the benefit of our employees, our customers and the patients of Bangladesh."

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.

It was renamed Sanofi Bangladesh Ltd in 2013. The company has a modern pharmaceutical plant in Tongi. Sanofi also supplies its global brands of vaccines, insulin and chemotherapy drugs to Bangladesh through direct imports.

Sanofi Bangladesh generated Tk388 crore in revenue, Tk49.79 crore in profit before tax and Tk609 crore of gross assets in 2019.