What Beximco Pharma says to London Stock Exchange about unrest impact

Beximco Pharmaceuticals Limited has said its manufacturing and distribution facilities sustained no significant damage during the recent unrest against the Sheikh Hasina-led government.

In light of recent unrest across Bangladesh and the appointment of an interim government, the company issued a statement to the London Stock Exchange on Tuesday. 

In the statement, Beximco Pharma, a listed company on the London Stock Exchange, said while disruptions in various parts of the country had led to reduced distribution in the interest of employee safety and welfare, operations are now returning to normal levels.

"The interim government of Bangladesh has indicated that it intends to prioritise addressing any ongoing unrest, and we expect to resume normal distribution in the coming days," the statement read.

Beximco Pharma stated that it does not currently expect this disruption to have a material impact on its financial expectations for the year. Further updates will be provided as necessary, it added.

Salman F Rahman, former adviser to the recently ousted Prime Minister Sheikh Hasina and vice chairman of Beximco Pharma, was taken into custody on Wednesday. He was arrested in the Sadarghat area of the capital during an alleged escape attempt, according to police.

Salman was arrested in connection with a case filed at the New Market Police Station, as confirmed by DMP Commissioner Mainul Hasan to The Business Standard.

According to police sources, two people were killed in a clash in front of Dhaka College on 16 July during a student protest demanding quota reform. Two murder cases were filed with the New Market Police Station in connection with these incidents.

One of the deceased, Shobuj Ali, was a student of Dhaka College. After his death, the Chhatra League claimed that he was one of their activists. 

Salman was arrested as an alleged instigator of the killings, the sources said.

Earlier in February, Beximco Pharma secured a €24.9 million loan, which is equivalent to over Tk300 crore, from the German bank ODDO BHF SE to expand its production capacity, aiming to increase its footprint in both local and export markets.

The company, in its disclosure, further stated that the loan, which will be paid directly to the machinery and equipment suppliers, has an interest rate of 6-month Euribor (Euro Interbank Offered Rate) plus a 1.3% margin. Repayments will be made in half-yearly instalments over five years, starting June 2025.

An equity note on Beximco Pharma by EBL Securities said that the company generates a major portion of its revenue from selling drugs in the domestic market, which constituted an average of 90% of its total revenue from FY19 to FY23. During the same period, the company earned an average of 9.4% of its total revenue from exports and 0.2% from contract manufacturing.

Its share closed at Tk88 on Wednesday, marking a slight increase from the previous session on the Dhaka Stock Exchange.