Half Yearly Report

24 July, 2014

BEXIMCO PHARMACEUTICALS LTD.

Half Year Results - 2014

Beximco Pharmaceuticals Limited ("BPL" or "the Company"; AIM Symbol: BXP), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces its un-audited results for the six months ended June 30, 2014.

Highlights

Half year financial highlights

- Net sales increased by 7.2% to Bangladesh Taka ("BDT") 5,322.2m / £40.2m (2013: BDT 4,966.4m / £42m)

o Domestic sales increased 10.0% to BDT 5,099.2 m / £38.5m (H1 2013: BDT 4,634.9m / £39.2m)

- Profit before tax increased by 6.6% to BDT 1,018.5 m / £7.69m (H1 2013: BDT 955.6m /£8.1m)

Second quarter highlights

- Net sales increased 1.6% to BDT 2,746.0m / £20.73m (2013: BDT 2,703.3m /£22.9m)

- Profit before tax increased 7.2% to BDT 613.6m / £4.63m (2013: BDT 572.1m /£4.8m)

Operational highlights

- Launched 19 products in the domestic market

o Mucomist DT, Onsat OSF and Calorate 740 Tablet were launched for the first time in Bangladesh

o Oral Soluble Film (OSF) technology was introduced for the first time in Bangladesh

- Registered 38 products in 11 overseas markets

- Atorvastatin was registered in 6 European countries, namely, Latvia, Lithuania, Estonia, Romania, Czech Republic & Netherland

- Commenced export of Pantoprazole to Germany in June, 2014

- Received GMP Approval from Taiwan Drug and Food Authority (TFDA) for oral solid, inhaler and ophthalmic facilities in June, 2014

o Became the first Bangladeshi company to receive GMP accreditation from the TFDA

Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:

"During the first half of this year we achieved 10% growth in sales in the domestic market and successfully expanded our generics portfolio with several exciting products. Looking ahead, we have good visibility on our order book and remain confident of achieving our expected sales, financial and operational targets for the full year."

The half yearly accounts can be viewed at the Company's website:

www.beximcopharma.com

(Exchange rates of £1 = 132.44 Taka for 30 June 2014 numbers and £1 = Taka 118.3for 30 June 2013 have been used in this announcement.)

For further information please visit www.beximcopharma.com or enquire to: 

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 861 9151, ext.20080

Daniel Stewart & Company (NOMAD and Broker)

Emma Earl

Paul Shackleton

Tel: +44 (0)20 7776 6550

FTI Consulting

Simon Conway

Victoria Foster Mitchell

Tel: +44 (0)20 3727 1000

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, nebulizer solutions, oral soluble films etc. Ensuring access to quality medicines is the powerful aspiration that motivates 3,000 employees of the Company.

Beximco Pharma's state-of-the-art manufacturing facilities are certified by global regulatory authorities of Australia, European Union, and Brazil, 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 Africa, including Mauritius, Kenya, Ghana and Nigeria, Pacific Island, Latin & Central American countries, Middle East, Central Asia, South East Asia, including Singapore, Malaysia, Philippines & Hong Kong, and Europe & Austria.

BEXIMCO PHARMACEUTICALS LTD.

Statement of the Managing Director

Dear Shareholders,

We are pleased to present the un-audited financial results for the half year ended June 30, 2014. 

The Company posted net sales of Tk. 5,322.2 million, up 7.2% over the corresponding period of 2013. The pre-tax profit stood at Tk. 1,018.5 million as compared to Tk. 955.6 million earned in the same period of prior year. During this half, we achieved 10.0% growth in sales in the domestic market and successfully introduced 19 new products, three of which were first-time launch in Bangladesh. 

We continued expanding our export product portfolio and in the first half wesuccessfully registered 38 products in 11 overseas markets. This includes registration of Atorvastatin in six European markets namely Latvia, Lithuania, Estonia, Romania, Czech Republic and Netherland. Moreover, in June we have commenced export of Pantoprazole to Germany.

During the reporting period, we have received GMP approval from Taiwan Food and Drug Authority (TFDA) for our OSD, MDI and Vision units. This is for the first time a Bangladeshi company achieved this prestigious accreditation which would allow us to find opportunities in the value-added generics market of Asia Pacific.

Although our export sales in this half decreased compared to export sales of the same period of the previous year, we are hopeful of achieving our expectedsales for the full year in view of the orders in our pipeline.

We are confident that the Company will continue to perform well during the remaining period to achieve its operational and financial targets for the year 2014.

Thank you for your continued support.

Nazmul Hassan

Managing Director

Beximco Pharmaceuticals Limited

Statement of Financial Position (Un-audited)

As at June 30, 2014

Beximco Pharmaceuticals Limited

Statement of Comprehensive Income (Un-audited)

For the Half Year Ended June 30, 2014

Beximco Pharmaceuticals Limited

Statement of Changes in Equity (Un-audited)

For the Period Ended June 30, 2014

Beximco Pharmaceuticals Limited

Statement of Cash Flows (Un-audited)

For the Half-Year Ended June 30, 2014

Beximco Pharmaceuticals Limited

Selected Notes to the Financial Statements (Un-audited)

For the Period Ended June 30, 2014

1. Reporting Entity

Beximco Pharmaceuticals Limited (BPL/the Company) is a public company incorporated in Bangladesh in 1976. It commenced its manufacturing operation in 1980. The Company is listed on Dhaka and Chittagong Stock Exchanges of Bangladesh and AIM of London Stock Exchange. The Company is engaged in manufacturing and marketing of Pharmaceuticals Finished Formulation Products, Active Pharmaceutical Ingredients (APIs) and life-saving Intravenous Fluids which it sells in the local as well as international markets. The registered office of the Company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are located at Tongi and Kaliakoir of Gazipur District- Vicinities close to the capital city Dhaka.

2. Basis of Preparation of Financial Statements

These interim financial statements should be read in conjunction with the Financial Statements for the year ended December 31, 2013 (hereafter referred to as the "Annual Financial Statements"), as they provide an update to previously reported information.

The accounting policies used are consistent with those used in the Annual Financial Statements. The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs). The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. Where necessary, the comparatives have been reclassified or extended to take into account any presentational changes made in the Annual Financial Statements. The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

11. Other Income

This includes gain of Taka 2,000,000 (Taka two million) arising from conversion of foreign currency loan at prevailing exchange rate on the date of Statement of Financial Position.

12. Dividend for 2013

The Shareholders of the Company has approved 10% Cash and 5% stock dividend for the year 2013 in the annual general meeting held on June 21, 2014. The Company consistently follows the policy of recognising proposed dividend after its approval by the shareholders in the annual general meeting. Hence, the dividend for 2013 has been accounted for in these interim financial statements. EPS has been computed taking into account the additional number of shares issued.