Beximco Pharma Discussion Threads

[mfhmfh] 08/5/2020 04:12

From the BBC:

Japan approves Remdesivir as Covid-19 drug

Japan has approved the use of antiviral drug Remdesivir as a treatment for Covid-19, a week after the US allowed the emergency use of the same drug.

There is no concrete proof as of yet that Remdesivir is effective in treating the virus but interest in the drug continues to rise across the world.

[mfhmfh] 06/5/2020 11:57

in the US remdesivir has received emergency FDA approval for the treatment of Covid-19. with FDA approval many other countries will automatically sanction it's use.

IMHO.

[pharma giles] 06/5/2020 11:29

The recent movement may be down to remdesivir, in particular (link below). Gilead appear to be reaching out to companies to help with the demand (although they don't say which ones).

hxxps://gulfnews.com/world/bangladeshs-beximco-pharma-to-start-making-gileads-remdesivir-this-month-1.1588755398112

[mfhmfh] 06/5/2020 11:10

positive response to yesterday's RNS.

market believing Covid-19 drugs could be good revenue stream for BXP. good to see we can switch swiftly to manufacturing these drugs based on demand.

also, al Jazeera mentioned yesterday that pharmaceutical industry in Bangladesh has not really shut down at all during the lockdown.

[pharma giles] 05/5/2020 10:57

Morningstar still saying Q3 results tomorrow - but looking less likely. The Bangladesh Securities and Exchange Commission are still short on people. I think the RNS has pretty much given us the heads up that Q3 are looking strong, expect a dip in Q4, but overall growth will be up on the year. Not quite as much as hoped (double digits) but any growth in this climate has to be good, as will any growth on last years impressive results. Nice to see they're adapting and manufacturing the COVID-19 meds, which hopefully should counter drops in other areas in H2?

[mfhmfh] 04/5/2020 07:22

'Beximco Pharma has also been working hard to urgently introduce drugs with potential benefits for COVID-19 patients. Amid global shortages of active pharmaceutical ingredients (APIs), the Company has manufactured hydroxychloroquine, favipiravir and ivermectin, with remdesivir in the pipeline.'

[pharma giles] 30/4/2020 13:54

Release will be 6th of May (source Morningstar)

[mfhmfh] 29/4/2020 11:08

was expecting 3rd quarter results announced today.

Maybe tomorrow?

[outsizeclothes.com] 02/4/2020 10:59

That's both the attraction, and disincentive.
In not allowing the Company to buy back foreign ADRs, it gives a type of incentive for foreign investors to hold these for longer. It also stops the Company spending a large chunk of money 'outside' the country, having got that foreign investment into the country in the first place.
As for the fact that there's the permanent shareprice discount to Dhaka, and, de-facto a bigger percentage divvy related to the UK share price, - when taken relative to typical "developing country" interest rates, we are probably just getting what they'd count as a "risk-necessary" reward.
We always have the potential up-kicker in that IF there was a takeover, we'd get the same price as Dhaka would.

[pharma giles] 01/4/2020 09:46

Hi Davydoo

On their website they provide information for shareholders - for buy back it just says

Share Buy Back
"A Bangladeshi company may buy back its own shares only by way of a court-approved reduction of capital."

Although I don't know how it all works in practice?

[davydoo] 30/3/2020 11:07

Thanks outsize

That seems crazy, means they're more likely to pay dividends earned in Bangladesh to us in the UK, than to their own shareholders who might spend it or reinvest it in Bangladash.

[outsizeclothes.com] 30/3/2020 10:51

Davydoo - the Bangladesh Govt won't allow them to.

[davydoo] 30/3/2020 09:12

New to this one, and apologies if this has been addressed before, but why isnt the company buying back the AIM listed GDRs if the discount is big?

[3800] 28/3/2020 22:43

good job you couldn't open the link PG its another scammmer
3800

[pharma giles] 28/3/2020 21:16

Thanks Magicnumber but couldn't access the link - may be restricted? are you able to post the article? Thanks

Some other news today

The Beximco Group decided to provide Personal Protective Equipment (PPE), medicines, test kits worth Tk 15 crore for diagnosis and protecting the frontline healthcare workers during the coronavirus pandemic. Full article here

hxxps://unb.com.bd/category/Bangladesh/coronavirus-beximco-donates-ppes-test-kits-medicine-worth-tk-15cr/48159

[pharma giles] 28/3/2020 11:45

Also meant to post some good news - no new cases of Covid in Bangladesh in the last 24 hrs. Lets hope this continues..

hxxps://www.dhakatribune.com/bangladesh/2020/03/28/coronavirus-4-more-bangladeshi-patients-recover-fully

[pharma giles] 28/3/2020 11:37

I’m pretty much in the same boat Outsize - although carrying a 10% paper loss at present (through various top ups at a higher price) - still my biggest holding. I’m not too worried about BXP per-se, and expecting continued good growth, but unsure if the impact on the rest of the Beximco conglomerate (textiles, ceramic etc) could have a negative impact on the Pharma arm, or whether BXP is completely ring fenced? (which I’ve assumed it is). Interestingly I received a text from my Lloyds pharmacy today about “experiencing exceptional demands” and that “The NHS as a whole is running out of inhalers and paracetamol due to hording” – quite a long text but basically an attempt to halt the stockpiling. I think this inevitable around the world, and why we could see better Q3 results than predicted? The BXP production lines will no doubt be working to full capacity (but just an assumption) and there aren’t many safer working environments than a sterile pharmaceutical manufacturing plant. Hopefully they’re all keeping safe outside work, as well, in these unfortunate times…..

[outsizeclothes.com] 26/3/2020 17:43

Hi Pharma Giles,
I'm in for about what has become 200k, roughly 10% of my equity portfolio, most bought in the teens of pence between 2013 to 2015 when they were stock splitting rather than paying cash divvys. I'm not selling, nor am I adding - yet!
I view BXP as a 'long-term' holding, so more likely to buy into severe weakness.
I fear for both Bangladesh and India - so many densely packed people.
But I also see BXP as an ideally placed generic drugs manufacturer to the World.

[pharma giles] 26/3/2020 08:47

Lockdown in Bangladesh, and I've been impressed how they've handled the situation. 39 cases at present (which will increase) but they've gone for an early containment strategy - which I thought we should have done here, after watching Italy. BXP Q3 results will be telling - I'm optimistic they'll be on track, and it's just a case of keeping one eye on how the government handles the situation... Interestingly the share price went down when they announced the 30% to shareholders, so delaying for year or 2 shouldn't have a huge affect on the share price hopefully, although may mean shareholders get slightly less this year? Are you still in this outsize or waiting for it to bottom out - genuine question.

[outsizeclothes.com] 25/3/2020 23:31

Disease progression in Bangladesh will be the main factor in the short-term.
Although in lockdown, in such a densely populated country social distancing is extremely difficult, and there is already evidence of community transmission.
They are also chronically short of testing facilities, testing kit, ICU beds.
And people are fleeing Dhaka in overcrowded busses and trucks, surely spreading the virus to other cities and outlying communities.
Beximco will be in a position to be of great help, possibly a "National saviour" but any reduced profits that are made this year will evaporate in the face of £10m+ interest bill.
I can also see a cash-strapped Government forced to increase Corporate taxation, especially from any Company viewed as being in a position to pay it, as the Garment industry grinds to a halt.
I believe the Company will survive, but that returns to shareholders will be curtailed, at least temporarily, and that the Bangladeshi Govt. "30% to shareholders" will be waived, possibly for a year to 18 months, in the face of the Company debt and the pandemic's destruction.
I sincerely hope I'm wrong - but I fear for a country that isn't equipped to cope.

[pharma giles] 24/3/2020 16:13

With the current share price (33p to buy), and a projected EPS of 8.5 - 8.8 this year, if the 30% dividend is still applied (and who knows) - we'd be on for a c8% dividend yield later this year.. We'll know more when Q3 comes out of course

[pharma giles] 24/3/2020 16:01

Short term borrowing down to 7,396M on the half year results. We don't have too long to wait for Q3 figures at least (end of April)..