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Unformatted text preview: ANNUAL REPORT 2018-19 Winner Global Generics & Biosimilars Awards 2019 ANNUAL REPORT 2018-19 BEXIMCO PHARMACEUTICALS LIMITED We continually strive to provide access to safe, effective and affordable medicines. Over the last 4 decades of operation, our motto has remained the same: ensuring health and wellbeing of the people. Contents About the Company 05 Highlights 46 Corporate Information 05 Post Period Highlights 47 Mission, Vision and Core Values 07 Accolades and Awards 48 Journey Towards Excellence 08 Chairman’s Statement 52 Board and Management 11 Management Discussion and Analysis 54 - The Board of Directors 12 Report of the Directors to the Shareholders 57 - Audit Committee 12 Report of the Audit Committee 73 - Nomination and Remuneration Committee 12 Report of the Nomination and Remuneration Committee 75 - Executive Committee 12 Notes on Corporate Governance 76 - Directors’ Profile 13 Investor Relations 78 - Executive Committee 16 Value Added Statement 80 - Management Committee 17 Financial Statements- Consolidated 81 Our Manufacturing Capabilities 18 Financial Statements- Beximco Pharma Stand-alone 104 Our Global Accreditations 25 Nuvista Pharma Limited What We Offer 27 - Directors’ Report to the Shareholders 139 Global Presence 28 Financial Statements- Nuvista Pharma Limited 141 Research and Development 29 Financial Statements- Beximco Pharma API Limited 167 Our People 30 Notice of Annual General Meeting 176 Environment, Health and Safety 34 Annual General Meeting Information 177 What We Do for the Society 37 Notes 178 Corporate Events 40 Proxy Form and Attendance Slip 179 About the Company Beximco Pharmaceuticals Ltd. is a leading manufacturer and exporter of medicines in Bangladesh. Incorporated in 1976, the company started its operation by importing products from Bayer, Germany and Upjohn, USA and selling them in the local market. In 1980 Beximco began manufacturing of these products under licensing arrangement and launched its own formulation brands in 1983. From that humble beginning, Beximco Pharma has grown from strength to strength, and today it has become an emerging global generic drug company from the region. Beximco’s manufacturing facilities have been accredited by the leading global regulatory authorities, and medicines manufactured by the company are now being exported to more than 50 countries including the highly regulated markets of USA, Europe, Canada and Australia. The Company has won the National Export (Gold) trophy for 5 times and remains the only company in the country to win the highly prestigious SCRIP Award as the Best Pharma Company in an Emerging Market. It also has the unique distinction as the only Bangladeshi company listed on the AIM of London Stock Exchange. Beximco Pharma also has a majority stake in Nuvista Pharma (formerly Organon Bangladesh), a leading hormone and steroid manufacturer in the country. The company currently employs more than 4,500 employees including doctors, pharmacists, engineers, chemists, accountants, business graduates and other white collar professionals. Corporate Information Operational Headquarters Public Relations For GDRs 19 Dhanmondi R/A, Road # 7 Dhaka- 1205, Bangladesh Phone : +880-2-58611001 Fax : +880-2-58614601 E-mail : [email protected] Website : IMPACT PR Apartment # A-1, House # 17, Road # 4, Gulshan-1, Dhaka-1212, Bangladesh Nominated Advisor SPARK Advisory Partners Limited 5 St. John's Lane, EC1M 4BH, London, UK No.1 Aire Street, Leeds, LS1 4PR, UK Broker SP Angel Corporate Finance LLP Prince Frederick House 35-39 Maddox Street, London W1S 2PP, United Kingdom Custodian HSBC Level 4, Shanta Western Tower 186 Bir Uttam Mir Shawkat Ali Road Tejgaon Industrial Area Dhaka- 1208, Bangladesh Depositary The Bank of New York Mellon 240 Greenwich Street, 22W New York, NY 10286- USA Corporate Headquarters 17 Dhanmondi R/A, Road # 2 Dhaka- 1205, Bangladesh Phone : +880-2-58611891 Fax : +880-2-58613470 E-mail : [email protected] Factory Tongi Unit 126 Kathaldia, Auchpara, Tongi, Gazipur-1711, Bangladesh Kaliakoir Unit Plot No. 1070/1083, Mouchak Kaliakoir, Gazipur Bangladesh Stock Exchange Listing Dhaka Stock Exchange Ltd. Chittagong Stock Exchange Ltd. AIM of London Stock Exchange plc (GDRs) FTI Consulting LLP 200 Aldersgate Aldersgate Street, London EC1A 4HD United Kingdom Legal Advisor Rafique-ul Huq Barrister-at-Law 47/1 Purana Paltan Dhaka-1000, Bangladesh Auditors M. J. Abedin & Co. Chartered Accountants National Plaza (3rd Floor) 109, Bir Uttam C. R. Datta Road Dhaka- 1205, Bangladesh Banker Janata Bank Ltd. AB Bank Ltd. About the Company and Corporate Information | Annual Report 2018-19 | 5 Mission We are committed to enhancing human health and wellbeing by providing contemporary and affordable medicines, manufactured in full compliance with global quality standards. We continually strive to improve our core capabilities to address the unmet medical needs of the patients and to deliver outstanding results for our shareholders. Vision We will be one of the most trusted, admired and successful pharmaceutical companies in the region with a focus on strengthening research and development capabilities, creating partnerships and building presence across the globe. Core Values Our core values define who we are; they guide us to take decisions and help realize our individual and corporate aspirations. Commitment to quality We adopt industry best practices in all our operations to ensure highest quality standards of our products. Customer satisfaction We are committed to satisfying the needs of our customers, both internal and external. People focus We give high priority on building capabilities of our employees and empower them to realize their full potential. Accountability We encourage transparency in everything we do and strictly adhere to the highest ethical standards. We are accountable for our own actions and responsible for sustaining corporate reputation. Corporate social responsibility We actively take part in initiatives that benefit our society and contribute to the welfare of our people. We take great care in managing our operations with high concern for safety and environment. Mission, Vision and Core Values | Annual Report 2018-19 | 7 1976 Journey Towards Excellence Company incorporated 1980 1983 1985 Started manufacturing products of Bayer AG, Germany and Upjohn Inc., USA, under license agreements Launched own formulation brands Listed on Dhaka Stock Exchange 2008 2013 2014 GMP accreditation from TGA, Australia and Gulf Central Committee for Drug Registration, for GCC states as the first Bangladeshi company Commenced export of ophthalmic products to Europe • GMP accreditation from Taiwan Food & Drug Administration (TFDA) and Health Canada • Commenced export to Australia and Romania 8 | Annual Report 2018-19 | Journey Towards Excellence 1993 2003 2005 2006 Commencement of export of formulation products to Russia Introduced anti-retroviral (ARV) drugs as the first Bangladeshi company Got listed on the Alternative Investment Market (AIM) of London Stock Exchange (LSE) through issuance of GDRs Launched CFC free HFA inhalers for the first time in Bangladesh 2015-16 2016-17 2017-18 2018-19 • GMP approval from the U.S. FDA as the first Bangladeshi company • Launched generic version of revolutionary hepatitis C drugs Sovaldi® and Harvoni® • Entered the Gulf pharma market (Kuwait) • Commenced export to the USA. • First overseas collaboration with BioCare Manufacturing Sdn Bhd, Malaysia • Won the “Scrip Award” in the category of “Best company in an emerging market” • Oral solid dosage facility received WHO prequalification • Acquired 85.22% stake in Nuvista Pharma Limited • Won the “Scrip Award” in the category of ‘‘Community Partnership of the Year’’ • GMP approval from Malta Medicines Authority Journey Towards Excellence | Annual Report 2018-19 | 9 We take it minute by minute, drop by drop, molecule by molecule. The miracle of a pyramid is in the perfection of every stone. The miracle of life is in the health of every cell. At Beximco Pharma, we are tireless at achieving such perfection in every molecule of our medicines. That’s our little contribution to life. Here’s to perfection. Here’s to life. Board and Management Salman F Rahman MP Vice Chairman A S F Rahman Chairman The Board of Directors A S F Rahman Salman F Rahman MP Nazmul Hassan MP Osman Kaiser Chowdhury Abu Bakar Siddiqur Rahman Iqbal Ahmed Dr. Abdur Rahman Khan Shah Monjurul Hoque Mohammad Asad Ullah, FCS Chairman Vice Chairman Managing Director Director Director Director Independent Director Independent Director Company Secretary Audit Committee Dr. Abdur Rahman Khan Shah Monjurul Hoque Osman Kaiser Chowdhury Mohammad Asad Ullah, FCS Chairman Member Member Company Secretary Nomination and Remuneration Committee Shah Monjurul Hoque Iqbal Ahmed Osman Kaiser Chowdhury Mohammad Asad Ullah, FCS Chairman Member Member Company Secretary Executive Committee Osman Kaiser Chowdhury Nazmul Hassan MP Rabbur Reza Mohammad Ali Nawaz Afsar Uddin Ahmed 12 | Annual Report 2018-19 | The Board of Directors Member of the Board of Directors Managing Director Chief Operating Officer Chief Financial Officer Director, Commercial Directors’ Profile Ahmed Sohail Fasihur Rahman Chairman Mr. Ahmed Sohail Fasihur Rahman is the Chairman and founder of Beximco Group. He is a distinguished business personality of the country and has received many awards and accolades for his outstanding contribution to country’s industrial development. Mr. Rahman was instrumental in introducing best-inclass corporate practice in Bangladesh and is widely credited as the architect of Group’s successful global strategy. He graduated with Honours in Physics from the University of Dhaka in 1966, and also studied in the United Kingdom. Mr. Rahman held key positions with many reputed organizations, serving as the Chairman of IFIC Bank Limited, Director of Industrial Promotion & Development Company Limited, Arab Bangladesh Bank Limited, Pubali Bank Limited and Investment Corporation of Bangladesh. He is currently a member of the Board of Governors of North South University Foundation, the first Private Sector University in Bangladesh. Salman Fazlur Rahman MP Vice Chairman Mr. Salman Fazlur Rahman MP is an industrialist, philanthropist and politician of Bangladesh. A Member of Parliament, Mr. Rahman currently serves as the Prime Minister’s Private Industry and Investment Adviser, with the rank and status of a cabinet minister, principally tasked with promoting trade, business and investment in the country. He is best known as the co-founder and vice chairman of the Beximco Group, the country’s largest private conglomerate, comprising of four publicly listed and seventeen privately held companies. He anchored the key initiatives that have helped to build Beximco’s corporate identity at home and abroad, and led the Group into becoming a leading industrial conglomerate in the country. He was the President of SAARC Chamber of Commerce and Industry, Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), Metropolitan Chamber of Commerce and Industry (MCCI), Bangladesh Textile Mills Association, Bangladesh Association of Pharmaceutical Industry and Association of Television Channel Owners (ATCO). Currently, he is the Chairman of the Board of Governors, Bangladesh Enterprise Institute, a leading think tank focusing on the growth of private enterprise in Bangladesh. He is also the Chairman of IFIC Bank Limited, Chairman of the Board of Editors, the Independent, one of the leading English-language newspapers, Chairman of the Independent Television, a popular and influential 24-hour news channel and the Chairman of Abahani Ltd. the nation’s premier sporting club and the Adviser of Bangladesh Association of Pharmaceutical Industries (BAPI). Mr. Rahman has many accolades to his name and he holds a degree from Karachi University. The Board of Directors | Annual Report 2018-19 | 13 Nazmul Hassan MP Managing Director Mr. Nazmul Hassan MP is the Managing Director of Beximco Pharmaceuticals Ltd. and the Chairman of Nuvista Pharma Ltd. He is also the Director of the Board of Bangladesh Antibiotic Industries Limited, Independent Television and Padma Mining and Energy Limited. Mr. Hassan obtained his graduation degree in Public Administration from the University of Dhaka and an MBA degree in Marketing from Institute of Business Administration (IBA). He also received executive education from University of California Los Angeles (UCLA) and Kellogg School of Management, Chicago. Since 2009, Mr. Hassan has been an elected Member of Parliament (MP) of Bangladesh for three consecutive terms. He is also a Member of the Parliamentary Committee for Finance, Sports & Defense. Mr. Hassan is currently the President of Bangladesh Association of Pharmaceutical Industries (BAPI). He is involved with various national and international committees and task force on healthcare and drug policy. Mr. Hassan is the elected President of Bangladesh Cricket Board (BCB) and Asian Cricket Council (ACC), Director of International Cricket Council (ICC) Board and ICC Business Corporation (IBC). He is the President of IBA Alumni Association and a Member of the American Management Association and the Australian Institute of Management. A prominent and highly respected business leader in the country, Mr. Hassan received the prestigious Asia’s Most Influential Leader award at the Asian Brand Summit 2013, Dubai for his outstanding business leadership. Osman Kaiser Chowdhury Director Mr. Osman Kaiser Chowdhury is a member of the Institute of Chartered Accountants of England and Wales and a Fellow member of the Institute of Chartered Accountants of Bangladesh. He is involved with Beximco Group for over 39 years and is currently the Director of Group Finance and Corporate Affairs, Chief Executive Officer of Beximco Power Ltd. and Beximco Engineering Ltd. He has over 13 years’ experience working abroad, including the United Kingdom. Mr. Chowdhury is a member of the Board of Directors of a number of listed and non-listed Companies including Bangladesh Export Import Company Ltd., Beximco Synthetics Ltd., Shinepukur Ceramics Ltd and Beximco Securities Ltd. Abu Bakar Siddiqur Rahman Director Mr. Abu Bakar Siddiqur Rahman holds senior positions at a number of entities within the Beximco Group of companies and has over 47 years business experiences in trading, jute, textiles, pharmaceuticals and other sectors. He has been in the Board of Beximco Pharma since 1993. Mr. Rahman is also a member of the Board of Directors of Bangladesh Export Import Company Limited. 14 | Annual Report 2018-19 | The Board of Directors Iqbal Ahmed Director Mr.Iqbal Ahmed has been with the Beximco Group since 1972 and holds senior positions in a number of entities within the Beximco Group of companies. He received his Bachelor’s Degree in Science from the University of Dhaka in 1966. He has over 47 years business experiences in trading, jute, textile, pharmaceuticals, engineering, IT and other sectors. He has been in the board of Beximco Pharma since 1985. He was the publisher of “The Independent” and the “Muktakantha”an English and a Bengali national daily newspaper respectively, in Bangladesh. Dr. Abdur Rahman Khan Independent Director Dr. Abdur Rahman Khan is a very senior and prominent physician in Bangladesh. He was the Chief Consultant Physician and Professor of Medicine, BIRDEM (Bangladesh Institute of Research and Rehabilitation in Diabetes, Endocrine and Metabolic Disorders) and Chairman, Board of Management of BIRDEM. Mr. Khan is a fellow of the Royal College of Physicians of London and College of Physicians and Surgeons of Bangladesh. He is a Member of National Council of Diabetic Association of Bangladesh, Member of the International Diabetes Federation and an honorary member of the Association of Military Surgeons, USA. He joined Bangladesh Army as a Commissioned Officer in Army Medical Corps and retired as a Major General. He was an Advisor to the Caretaker Government of Bangladesh and previously Vice President of the Red Crescent and Red Cross society of Bangladesh. Shah Monjurul Hoque Independent Director Mr. Shah Monjurul Hoque is a practicing lawyer in the Supreme Court of Bangladesh, both in the High Court Division and Appellate Division. Mr. Hoque is the founder of Hoque & Associates, a law firm in Bangladesh, of which he is the Proprietor (a position equivalent to that of a director). He has held various academic appointments in the field of law and has also acted as legal adviser to a number of corporate clients in Bangladesh and as the enlisted lawyer of several Bangladeshi banks. Company Secretary Mohammad Asad Ullah Executive Director & Company Secretary Mr. Mohammad Asad Ullah has been working with Beximco Group since 1991. He obtained his Bachelor of Arts and Bachelor of Law degree from Dhaka University. He also holds an MBA with major in Human Resource Management. Mr. Asad Ullah qualified as Chartered Secretary from the Institute of Chartered Secretaries of Bangladesh (ICSB) and is a Fellow Member of the institute. He was four times President of the Institute. He is a widely experienced person with long career in Company Secretarial functions. The Board of Directors | Annual Report 2018-19 | 15 Executive Committee Executive Committee comprises of five members- Mr. Osman Kaiser Chowdhury, Mr. Nazmul Hassan MP, Mr. Rabbur Reza, Mr. Mohammad Ali Nawaz and Mr. Afsar Uddin Ahmed. Mr. Chowdhury and Mr. Hassan are also members of the Board of Directors. Mr. Rabbur Reza Chief Operating Officer Mr. Rabbur Reza, the Chief Operating Officer of the Company, has 24 years of experience in pharmaceutical industry, in the areas of sales, marketing and brand management, international business development, operations management, acquisition and partnerships etc. He had previously worked for Biotech and Milton Pharmaceuticals in Australia. He is also serving as the Managing Director of Nuvista Pharma, a subsidiary of Beximco Pharma, since its acquisition. Mr. Reza holds a Bachelor of Pharmacy from Panjab University, India and an MBA from Queensland University of Technology (QUT), Australia. He received executive education in Strategy and Leadership at Harvard Business School, USA and London Business School, UK. He is a fellow of Australian Institute of Management, a member of Pharmaceutical Society of Australia, and also a member of Montreal Protocol’s Medical Technical Options Committee (United Nations Environment Program–UNEP). Mr. Reza received the prestigious “Australian Alumni Excellence Awards 2014” in the category of Business and Leadership. Mohammad Ali Nawaz Chief Financial Officer Mr. Mohammad Ali Nawaz qualified as a CMA from the institute of Cost and Management Accountants of Bangladesh, and is currently a Fellow Member of the Institute. He also obtained an MBA from the Institute of Business Administration, University of Dhaka. After joining as a management trainee in 1990, he worked for different entities within the Beximco group of companies, in varying capacities. He possesses diversified skills and experience in Accounting, Finance, HRM, Project Management, Supply Chain and Operations Management. He attended a number of training courses, seminars and symposiums at home and abroad in various functional areas including organizational leadership. Afsar Uddin Ahmed Director Commercial Mr. Afsar Uddin Ahmed completed his MBA from the Institute of Business Administration (IBA), University of Dhaka, with a major in Marketing. He also received advanced management training at International Management Centre, IIkley College, UK. Mr. Ahmed has worked in and supervised a number of operational areas of BPL including Marketing, Sales, Distribution, Exports, Planning, Procurement, MIS, Business Development, Project Management and API business. Mr. Ahmed also worked as the Country Manager of ...
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