Beximco Pharmaceuticals Ltd AGM Statement (6588P)

TIDMBXP

RNS Number : 6588P

Beximco Pharmaceuticals Ltd

21 November 2016

21 November, 2016

BEXIMCO PHARMACEUTICALS LTD

Annual General Meeting Statement

Beximco Pharmaceuticals Limited ("Beximco Pharma", "BPL" or "the Company"; AIM Symbol: BXP), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces that all resolutions put before shareholders at the Company's Annual General Meeting ("AGM") held on 19 November 2016 were duly passed.

The resolutions passed at the AGM included the approval of a 5% final cash dividend, a 5% stock and 10% cash dividend (already paid as interim dividend) for the period of 18 month ended on 30 June 2016. The final cash dividend being 5% of the nominal value per ordinary share of Tk.10 (Tk. 0.5 per ordinary share/per global depository receipt ("GDR") held in respect of GDR holders) will be paid to holders of ordinary shares/GDRs (who were on the register of shareholders/GDR holders as on the date of record) i.e. 1 November 2016 within 30 days from the date of approval i.e. on or before 19 December 2016. The cash dividend will be paid after deduction of taxes as per Bangladesh Tax law.

It is intended that the new ordinary shares/GDRs arising from the 5% stock dividend i.e. 5 ordinary shares/GDRs per 100 ordinary shares/GDRs (in respect of GDR holders) held, will be credited to shareholders/GDR holders accounts on or before 19 December 2016.

Application will be made for admission of the new GDRs arising from the stock dividend ("New GDRs") to be admitted to trading on AIM ("Admission"). Admission is expected to take place shortly after the New GDRs are credited to the respective accounts and a further announcement will be made in due course with the expected date of Admission.

Following issuance of the stock dividend, the total issued share capital of the Company will be 405,556,445 ordinary shares of Taka 10 ("Ordinary Shares"), of which 90,943,627 will be represented by GDRs. The new Ordinary Shares will rank pari passu in all respects with the existing issued Ordinary Shares, all having voting rights.

The Annual Report for 2015-16 is available from the Company's website, which includes the audited accounts that were previously sent to shareholders and a review of operations for the 18 month period ended on 30 June 2016.

During the course of the meeting, Chairman of the Company, Ahmed Sohail Fasiur Rahman, made the following statement to shareholders:

Dear Shareholders,

On behalf of my fellow board members and everyone from the Beximco Pharma family, I welcome you all to the 40th Annual General Meeting of the Company.

In line with the new regulatory provision of the Finance Act 2015 and as announced by the Company in May 2016, Beximco Pharma is required to change its accounting year from January-December to July-June. Unlike other years, we are therefore reporting for a period of 18 months ending on June 30, 2016 to accommodate first time adoption of this change.

I am pleased to report continued progress throughout the reporting period. The Company maintained its strong growth and achieved a 13.2% increase in sales in 2015 in the domestic market. The export business did exceptionally well in achieving a 68.3% increase over the previous year. This sales growth momentum continued for the reported first half of 2016. In addition to registering impressive growth in sales and profit, we have made progress, as planned, in key operational areas by expanding the product portfolio, registering products in overseas markets and obtaining product and plant certifications.

In 2015, we achieved a major milestone by becoming the first Bangladeshi pharmaceutical company to be approved by the US Food and Drug Administration (US FDA). Subsequently, in August 2016, we commenced export to the US market, making history for the Bangladesh pharmaceutical industry. Additionally, during the period under review, we initiated export to Australia and the Gulf country Kuwait, among others. In recognition to our commendable performance in export of pharmaceutical products, we were awarded the National Export (Gold) Trophy for the record fifth time. Our international accreditations and attention to quality have helped us earn the trust within the generic drug industry.

At the end of 2015, the World Trade Organization TRIPS Council extended a waiver that allows exemption to the least developed countries from applying and enforcing IP rights on pharmaceutical products until January 1, 2033. This is positive news for generic pharmaceutical companies like us as it provides an extended opportunity to develop and launch generic versions of patented products.

Our ongoing expansion project to enable us to diversify our portfolio, expand our production capacity and upgrade a number of our existing units with the intention of securing the Company's current and future growth is progressing as planned and is expected to be completed by the end of 2017. As previously announced, the plant and machinery to be procured for the project is partially being financed under an overseas loan agreement with BHF Bank, Germany. Additionally, we have initiated a project to implement Oracle Enterprise Resource Planning (ERP) solutions across the organisation. Once implemented, we believe this will help improve operational efficiency and productivity in the Company.

A business is only as good as its people. We at Beximco Pharma believe that our employees are the backbone of the organisation. Our employees' constant hard work, dedication, skill and knowledge continue to propel the Company forward and we remain committed to our focus on people. Development of human resources is of utmost importance to us and, as such, we continue to invest in training and development program to equip our employees with the knowledge and skills necessary to take the organization to the next level.

In conclusion, I would like to convey my sincerest gratitude and appreciation to all our stakeholders who have contributed in making Beximco Pharma what it is today and especially to our shareholders for their ongoing support.

Thank You,

A S F RAHMAN

Chairman

For further information please visit www.beximco-pharma.com or enquire to:

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: [phone], ext.20080

Md. Asad Ullah, FCS, Executive Director & Company Secretary

Tel: [phone], ext.10140

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Sean Wyndham-Quin

Tel: [phone] / 3555

Daniel Stewart & Company plc (Broker)

David Lawman / Daphne Zhang

Tel: [phone]

FTI Consulting

Simon Conway / Victoria Foster Mitchell

Tel: [phone]

Notes to Editors

About Beximco Pharmaceuticals Limited

Founded in 1976 and based in Dhaka, Bangladesh, Beximco Pharma manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies. The Company operates from a 23 acre site in Dhaka and has manufacturing facilities for producing various drugs in different delivery systems such as tablets, capsules, liquids, semi-solids, intravenous fluids, metered dose inhalers, dry powder inhalers, sterile ophthalmic drops, prefilled syringes, injectables, nebuliser solutions and oral soluble films. Ensuring access to quality medicines is the powerful aspiration that motivates 3,500 employees of the Company.

Beximco Pharma's state-of-the-art manufacturing facilities are certified by global regulatory authorities of the US, Europe, Australia, Canada, GCC and Latin America, among others. The Company's products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Sri Lanka, Nepal, Bhutan, Vietnam, Cambodia and Myanmar and in other markets overseas, principally in South East Asia, including Singapore, Taiwan, Malaysia, Indonesia, Philippines and Hong Kong; Africa, including South Africa, Mauritius, Kenya, Ghana, Ethiopia, Uganda and Nigeria; Central Asia, including Azerbaijan; Middle East, including Kuwait and Jordan; Pacific Island countries; Latin and Central American countries; Europe, including Austria, Germany and Romania; Australia and the US.

This information is provided by RNS

The company news service from the London Stock Exchange

END

AGMUAOVRNWAAURA

(END) Dow Jones Newswires

November 21, 2016 02:00 ET (07:00 GMT)