Boston Properties
Annual Report 2010

Plain-text annual report

“Beximco Pharma aspires to become a nationally admired and globally reputed generic pharmaceutical company, committed to enhancing human health and life.” Annual Report 2010 Beximco Group Mission Each of our activities must benefit and add value to the common wealth of our society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact, namely: our employees, our customers, our business associates, our fellow citizens and our shareholders. Beximco Pharmaceuticals Ltd. Contents Overview About the Company .................................................................................................................................................................... Our Story ....................................................................................................................................................................................... Corporate Directories ................................................................................................................................................................ Managing Director’s Message ..................................................................................................................................................... 2010 Highlights ............................................................................................................................................................................ Adding Value to Life Products ....................................................................................................................................................................................... Our People .................................................................................................................................................................................... Manufacturing Capabilities ....................................................................................................................................................... Regulatory Approvals ................................................................................................................................................................. R&D ................................................................................................................................................................................................. Global Footprint ........................................................................................................................................................................... Corporate Citizenship ................................................................................................................................................................ Strong Relationships .................................................................................................................................................................... Post Balance Sheet Developments ........................................................................................................................................... Governance Notice of the Thirty-Fifth Annual General Meeting ............................................................................................................ Chairman’s Statement.................................................................................................................................................................. Report of the Directors to the Shareholders........................................................................................................................ Corporate Governance Compliance Report ........................................................................................................................ Key Operating and Financial Data ............................................................................................................................................ Shareholders’ Meeting ................................................................................................................................................................. Value Added Statement ............................................................................................................................................................... Financial Results Auditors’ Report to the Shareholders ................................................................................................................................... Statement of Financial Position ................................................................................................................................................. Statement of Comprehensive Income ..................................................................................................................................... Statement of Changes in Equity ................................................................................................................................................ Statement of Cash Flows ........................................................................................................................................................... Notes to the Financial Statements .......................................................................................................................................... 5 7 8 11 15 17 23 26 37 39 41 43 47 48 49 50 54 57 58 60 62 63 64 65 66 67 68 Annual Report 2010 Beximco Pharmaceuticals Ltd. 4 About the Company Beximco Pharmaceuticals Ltd., commonly known as Beximco Pharma or BPL, is a leading manufacturer and exporter of finished formulations and active pharmaceutical ingredients (APIs) in Bangladesh. Beximco Pharma is the flagship company of Beximco Group, the largest private sector industrial conglomerate in Bangladesh, and remains the only Bangladeshi company with an AIM listing on the London Stock Exchange. The company employs more than 2,500 people and is widely acclaimed for its skilled and talented workforce. Its state-of-the- art manufacturing facilities have been certified by the global regulatory bodies such as TGA (Australia), GCC (Gulf Council), ANVISA (Brazil) and INVIMA (Colombia). Today Beximco Pharma is building its presence across five continents and is the only Bangladeshi company to market pharmaceutical products in the USA. The company has a visible and growing presence in emerging markets, including Malaysia, Kenya, Singapore, Myanmar, Sri Lanka, Nepal, Nigeria and the Philippines. Moreover, it has received the National Export Trophy (Gold) on three separate occasions for its outstanding contributions to the country’s pharmaceuticals export. We’ve built Beximco Pharma into one of the most trusted pharmaceutical companies in the country by delivering solid returns to our shareholders, and helping patients with life-altering conditions so that they may live their lives to the fullest. Annual Report 2010 5 Beximco Pharmaceuticals Ltd. 6 Our Story Beximco Pharma started its journey back in the 1970’s. Today the company has grown to become one of the largest exporters of medicines in the country; employing over 2,500 people and expanding its presence across many regions of the world. Let’s take a look at Beximco Pharma’s milestones along the way ... 2010 2009 2008 2007 2006 2005 2003 2001 2000 1996 1993 1992 1985 1983 1980 1976 : The only pharmaceutical company in Bangladesh to enter the US market through the acquisition of an Abbreviated New Drug Application (ANDA) for a product; Received GMP Accreditation from INVIMA, Colombia : Only Bangladeshi company to receive GMP Certification from ANVISA, Brazil; ION unit was launched for producing injectables, ophthalmics and nebulizer solutions : First Bangladeshi company to receive GMP Clearance from Therapeutic Goods Administration (TGA) Australia, and Gulf Central Committee for Drug Registration, for GCC states; Technology transfer arrangement to manufacture Roche’s ARV drug Saquinavir : Oral Solid Dosage facility was commissioned according to US FDA standards : Launched CFC free HFA inhalers for the first time in Bangladesh : Only company in Bangladesh to be listed on the Alternative Investment Market (AIM) of London Stock Exchange (LSE) through issuance of GDRs : First and only company to introduce anti-retroviral (ARV) drugs in Bangladesh : First and only Bangladeshi company to enter Singapore, one of the most regulated markets in Asia : Only company to achieve ‘National Export Trophy (Gold)’ for the third time : IV unit (former Beximco Infusions Ltd.) received ISO 9001 Certification from TUV-Cert, Germany : Russia became the first export destination for formulation products : Export operation started with APIs : Listed on Dhaka Stock Exchange : Launched its own formulation brands : Started manufacturing products of Bayer AG, Germany and Upjohn Inc., USA, under license agreements : Company incorporated We have come a long way; but the journey only gets better … Annual Report 2010 7 Corporate Directories A S F RAhmAn Chairman SAlmAn F RAhmAn Vice Chairman The Board of Directors A S F Rahman Salman F Rahman nazmul hassan mP Iqbal Ahmed mohammad Abul Qasem Osman Kaiser Chowdhury Abu Bakar Siddiqur Rahman Advocate Ahsanul Karim Dr. Abdul Alim Khan Company Secretary Md. Asad Ullah, FCS Chairman Vice Chairman Managing Director Director Director Director Director Director Independent Director Beximco Pharmaceuticals Ltd. 8 management Committee Nazmul Hassan MP Managing Director Osman Kaiser Chowdhury Member of the Board of Directors Rabbur Reza Chief Operating Officer Ali Nawaz Chief Financial Officer Afsar Uddin Ahmed Director, Commercial Lutfur Rahman Director, Manufacturing Zakaria Seraj Chowdhury Director, International Marketing A R M Zahidur Rahman Executive Director, Production Shamim Momtaz Executive Director, Manufacturing Mohd. Tahir Siddique Executive Director, Quality Jamal Ahmed Choudhury Executive Director, Accounts & Finance Executive Committee Osman Kaiser Chowdhury nazmul hassan mP Rabbur Reza Ali nawaz Afsar Uddin Ahmed Member of the Board of Directors Managing Director Chief Operating Officer Chief Financial Officer Director, Commercial Annual Report 2010 9 nAzmUl hASSAn mP Managing Director Beximco Pharmaceuticals Ltd. 10 Managing Director’s Message 2010 was a successful year for Beximco Pharma. The company’s performance in the year clearly demonstrates that we are well on the way to achieving the challenging goals we set for ourselves, and that our people remain focused on delivering outstanding results. 2010 was, in many ways, an important and defining year as we move forward with achieving our aspiration to become one of the most admired generic drug companies in the region. During the year under review, your company performed exceptionally well—not only in terms of top line growth but also in terms of all-round improvements in operating parameters. Sales grew in excess of 33% to reach Tk 6.49 billion and profitability also increased sharply, with EBITDA growing by 70% from 2009. We have benefited from strong growth in the Bangladeshi economy, which grew 5.8% in 2010 despite the global economic slowdown. The main contributors towards this growth were the services and industrial sectors. A steady inflow of foreign remittances and an impressive growth in RMG exports helped the economy remain stable during this challenging period. Bangladesh continued to attract global attention, particularly from global business and investment firms. Bangladesh received its first sovereign credit rating in 2010 when US- based rating agencies Standard & Poor’s (S&P) and Moody’s Investors Service assigned positive ratings to Bangladesh and termed the country’s economic outlook stable. These ratings put the country on a par with Turkey, the Philippines and Vietnam, and in the South Asian context, well ahead of Sri Lanka and Pakistan. These are very positive developments and we firmly believe that these will create awareness and attract further foreign investment in various product and service sectors; including the pharmaceuticals. to IMS Health, in 2010 the global pharmaceutical market was valued at $825 billion growing by 4% over the previous year. The global generic drugs industry was worth $125 billion, achieving double digit growth, and this trend will continue with rising cost pressure from healthcare providers and governments, further assisted by the large number of blockbuster drugs going off patent. Last year, drugs worth $35 billion lost patent protection while blockbuster drugs worth $150 billion are set to lose patent protection in the next five years. This will create huge opportunities for the generic drugs industry. We believe Bangladesh can capitalize on the opportunities in generic drugs with its skill base, regulatory compliance, quality standards and, above all, competitiveness. The government has undertaken various initiatives, which are at different stages of implementation, to support the industry in realizing its actual export potential. The Bangladesh pharmaceutical market continued to register healthy growth of 23.81% in 2010, with approximately Tk. 68 billion in revenues. Local companies continued to dominate, with the top 10 manufacturers accounting for about 70% of the total market. Almost all the therapeutic categories showed positive growth which turned the market into a billion dollar industry. This was largely due to rising incomes, increasing prevalence of chronic diseases and increased government spending on healthcare. In 2010, Bangladesh received the prestigious UN award for its remarkable achievements in attaining the Millennium Development Goals, particularly in reducing child mortality rates. The private sector, particularly the pharmaceutical industry, continues to play a very important role in containing costs within the health care delivery system, and your company proudly and proactively associates itself with various government and CSR initiatives in order to support the strengthening of healthcare systems. The pharmaceutical industry has historically been relatively immune to economic slowdowns and recession. According The company achieved a commendable 61% growth rate in analgesics last year. The chronic care segment also continued Annual Report 2010 11 to perform very well, with key therapeutic groups such as cardiovascular, anti-diabetic, and musculoskeletal significantly outperforming the market growth rates, registering growth of more than 50% each. Company’s Napa (Paracetamol) range emerged as the highest selling brand, with annual sales in excess of Tk 1 billion. During the year, BPL expanded its branded generics portfolio with 34 new products. Napa Extend, a product line extension of Napa and a formulation of paracetamol 665mg, was launched for the first time in Bangladesh. In addition, three different HFA-based inhalers, Aeronid HFA, Ipramid HFA and Iprasol HFA, were launched in the market, for the very first time. On the technology front, your company embraced a series of positive developments during the period. Our core strength is reverse engineering and we continue to focus on simplifying manufacturing processes and enhancing cost efficiency. Our R&D is geared up to produce hi-tech and specialized niche products and we have diversified into dosage delivery systems including Dry Powder Inhaler, Total Parenteral Nutrition, Pre-filled Syringes etc. We are also seeking international collaborations with renowned research institutes in order to strengthen our generic drug capabilities. As we continue to grow, we recognize that our people are our most valuable asset, and a large measure of our success can be credited to our cohesive, result–oriented organizational culture. As part of our long term Learning and Development Program (LDP), we continued investing in our employees, providing them with high quality training to broaden and consolidate their professional skills. During the year, BPL became the first and only company in Bangladesh to commence marketing of a pharmaceutical product in USA, one of the most stringent and highly regulated markets in the world. This is a major milestone for the company which is in line with our expectations and our aspiration to become a global generic drug player. The marketed generic, already listed on US FDA’s Orange Book as a Beximco product, is currently being manufactured by an overseas contract manufacturing organization (CMO) which will be transferred to BPL production site as soon as the US FDA accreditation is received. Moreover, we continue to have a growing presence in emerging markets like Kenya, Myanmar, Sri Lanka, and so on. In 2010, export turnover grew 21.47% to reach Tk. 330.54 million and the company saw registration of another 45 products in seven countries. The company entered several new markets such as Netherlands Antilles, and South Africa (via contract manufacturing). Beximco Pharmaceuticals Ltd. 12 The year saw the successful expansion of our ION unit. Our expansion of MDI is nearing completion which will significantly increase our capacity. All these translate into enhanced manufacturing capacity in value added products such as inhalers, eye drops, nasal sprays etc. As a line extension of our infusion unit, we have successfully completed the amino acid project and already introduced a parenteral nutrition product. As we look forward to becoming a notable contract manufacturing company in the region, our major initiatives in expanding capacity which were implemented throughout the year will help us to meet the growing demands of our existing and prospective clients. In light of our global aspirations, we will continue to foster partnerships and will reinforce our efforts to obtain all prerequisite international regulatory approvals for expansion into the most strictly regulated markets. We remain focused on entering these regulated markets, as they offer tremendous opportunities for generic drugs, and your company is advantageously positioned to gain from such opportunities, with its strong generic drug manufacturing skills and very low cost base. In 2010 the company became the first and only Bangladeshi company to receive regulatory approval from INVIMA, Colombia. A GMP accreditation audit by an EMA regulatory authority was completed for our new OSD and Ophthalmology units, while GMP re-inspection by TGA Australia was successfully completed for the new OSD and MDI facilities which have been extended until 2012. Our vision is to transform Beximco Pharma from being a leading Bangladeshi pharmaceutical company into a global generic drug company. We are gearing up in preparation for building our presence in the European Union, USA, Latin America, Gulf Cooperation Council, and Australia. I would like to take this opportunity to thank each of our shareholders and all other stakeholders for their trust and confidence in us. My deepest appreciation goes to all our employees for their all-out efforts in achieving outstanding results in 2010 which, we hope, will be an important milestone towards achieving our vision of becoming one of the most admired and successful generic drug companies in the region. Nazmul Hassan MP Annual Report 2010 13 2010 Highlights Beximco Pharmaceuticals Ltd. 14 2010 Highlights • • Achieved 33.33% sales growth over 2009, outperforming industry growth of 23.81% BPL became the first and only Bangladeshi company to enter the US pharma market through acquisition of an Abbreviated New Drug Application (ANDA) BPL received regulatory approval from INVIMA (Colombia) for OSD and MDI facility • • MDI expansion is being completed to produce more than 20 million units per year • Introduced 34 new products • • • • Launched 3 HFA-based inhalers and Napa Extend (a formulation of Paracetamol 665 mg) for the first time in Bangladesh Completed expansion of ION unit (ION-2) Donated drugs worth Tk. 10 million to the nationwide health camp for treatment for the underprivileged Sponsored national cricket league as well as major international event including the South Asian Federation (SAF) games Annual Report 2010 15 We continuously review, update and expand our product portfolio in order to ensure that patients have access to newer generics and better treatment options at an affordable price. Beximco Pharmaceuticals Ltd. 16 Products The Company’s diverse product portfolio encompasses a wide variety of therapeutic categories, including antibiotics, analgesics, respiratory, cardiovascular, central nervous system, dermatology, gastrointestinal etc. BPL currently produces 235 generics in 426 strengths and dosage forms and many of the company’s brands are consistently occupying leading positions in their respective therapeutic categories. In 2010 Beximco Pharma introduced 27 new generics in a total of 34 presentations, which include seven ophthalmic drops, three HFA asthma inhalers and also drugs in categories such as, three cardiovascular, two multivitamins, two musculoskeletal, two anti-infective, and one anti-diabetic, among others. The three HFA-based inhalers which were launched for the first time in Bangladesh in 2010 include: Aeronid HFA (Budesonide), Ipramid (Ipratropium) HFA and Iprasol (Salbutamol + Ipratropium) HFA. Also introduced for the first time into the market was a formulation of Paracetamol 665 mg, Napa Extend; a product line extension of the well established brand Napa. Beximco Pharma’s growth prospects remain excellent with key blockbuster products such as Napa and Neoceptin R in its portfolio. In 2010, Napa and Neoceptin R ranked 2nd and 4th respectively on the national “Top Five” list. More than ten of BPL’s brands have annual sales in excess of BDT 100 million each. With an ever increasing number of new products in the pipeline, the company is building a much stronger portfolio that will ensure future growth as well as provide access to newer treatments. Annual Report 2010 17 Beximco Pharma has a well-established and balanced portfolio of products to meet the patient needs. BPL, with more than 400 products, is able to respond to the wide range of needs of physicians, patients, and health care providers, both therapeutically and economically. Beximco Pharmaceuticals Ltd. 18 Therapeutic groups AllERgy, COUgh & COlD Beximco Pharma has a good number of drugs for treating different types of allergy and cough. Bexidal (Mebhydroline) is the highest selling brand of its generic. Atrizin (Cetirizine) along with other growing brands like Axodin (Fexofenadine) and Momento (Desloratidine) are performing very well. Among the cough preparations, Mucosol (Ambroxol Hydrochloride), and Tripec (Guaifenesin, Pseudoephidrine and Triprolidine) are widely popular brands in this category. 16generics 25presentations AnAlgESIC & mUSCUlOSKElETAl Beximco Pharma has been a market leader in analgesics for more than a decade, led by the strong performance of Napa (Paracetamol) which is the leading paracetamol brand and bestselling drug in the country in terms of volume. Napa is available in 13 different forms and strengths. Strong brand recognition, efficacy and affordability helped achieve its leadership position. Osteoarthritis, Rheumatoid arthritis, Muscle spasm, pain of musculoskeletal origin limits the activities of daily life of millions of patients. The wide range of products in the musculoskeletal category offers Ultrafen Plus (Diclofenac + Misoprostol), Ultrafen (Diclofenac), Zolfin (Aceclofenac), Xidolac (Ketorolac) and Relentus (Tizanidine) which are consistently performing well. Napa Extend (Paracetamol 665 mg) tablet has been launched for the first time in Bangladesh and has already become a popular brand in this category. Ultrafen Injection, a line extension of Ultrafen, has also been launched. 20generics 52presentations AnTI-InFECTIvES Beximco Pharma is very strong in this category offering broader portfolio of antibiotics from Penicillin, Cephalosporin, Fluoroquinolone and Macrolide groups and key brands in these categories occupy leadership positions. Notable among them are- Neofloxin (Ciprofloxacin) which is the only clinically tested Ciprofloxacin brand in the country, Arixon (Ceftriaxone), Azithrocin (Azithromycin), Turbocef (Cefuroxime) and Triocim (Cefixime). The company also has a good product portfolio of Antiamebic like Filmet (Metronidazole), Antifungal like Omastin (Fluconazole) and Antiparasite like Ivera (Ivermectin). Beximco Pharma is the first company in Bangladesh to launch Oseflu (Oseltamivir), a drug for treating Avian and H1N1 flu. 32generics 81presentations CARDIOvASCUlAR Heart disease and stroke remain major causes of death in Bangladesh. Our cholesterol lowering drug Atova (Atorvastatin), Amdocal (Amlodipine besylate), Amdocal Plus (Amlodipine besylate + Atenolol), Odrel (Clopidogrel), Odrel Plus (Clopidogrel + Aspirin) and Prosan (Losartan) are performing very well. Our brand of nitroglycerine aerosol spray, Nitrosol is getting increasing response from the doctors. In particular Olmesan (Olmesartan) and Bizoran (Amlodipine+Olmesartan) are gaining significant prescription share. 26generics 41presentations CEnTRAl nERvOUS SySTEm Nervous system disorders have become a major health concern worldwide, and the incidence of CNS disorders is rising steadily. Beximco Pharma offers a good number of CNS products to treat these disorders. Frenxit (Flupentixol + Melitracen) is the highest selling CNS brand in Bangladesh. Among other brands Onsat (Ondansetron) and Xetril (Clonazepam) are also doing well in this segment. 23generics 33 presentations Annual Report 2010 19 Beximco Pharmaceuticals Ltd. 20 DERmATOlOgICAl Beximco Pharma’s range of products in the skin care category offers easy and convenient solution to wide range of skin diseases like fungal and bacterial infections, eczema, atopic dermatitis, other inflammatory skin diseases requiring corticosteroid therapy, acne, psoriasis etc. Omastin Duo (Fluconazole Capsule and Clotrimazole Cream) and Neosten VT (Clotrimazole) are widely used antifungal brands. Exovate N (Neomycin, Nystatin and Clobetasol Propionate) is enjoying a good prescription share as multiple action topical agents. Burnsil (Silver Sulphadiazine) and Cosmotrin (Tretinoin) are widely used for treating burns and acne respectively. 21generics 27 presentations EnDOCRInE & mETABOlIC DISORDERS Bangladesh has one of the most prevalent diabetic populations in the world. Beximco Pharma offers a wide range of drugs for effective treatment of type II diabetes. Co-Diaglit (Pioglitazone+Metformin) is launched as a new combination antidiabetic brand in this year getting significant market share. Diapro (Gliclazide) is the brand of choice from the sulfonyl urea group available in Bangladesh. Other products in this category include Informet (Metformin), Diaryl (Glimepiride) and Diaglit (Pioglitazone). 10generics 17presentations gASTROInTESTInAl The company has one of the strongest product lines for treating gastrointestinal disorders and remains a leader in this therapeutic class. Emonium injection has been launched as the line extension of Emonium which is getting good result from market. Neoceptin R, which is a H2 blocker used in the treatment of ulcer, GERD, and other hyperacidity disorders, is currently the 2nd largest selling brand in Bangladesh. In the segment of Proton Pump Inhibitors (PPIs), Pantobex (Pantoprazole), Proceptin (Omeprazole) and Opton (Esomeprazole)are doing well and driving this subcategory. Antacid Max (Aluminium Hydroxide, Magnesium Hydroxide and Simethicone), Deflux (Domperidone) and Rostil (Mebeverine) have also achieved healthy growth. 20generics 36presentations RESPIRATORy Respiratory represents another key segment for the company. Beximco is the largest manufacturer of Metered Dose Inhalers (MDIs) in Bangladesh using the most advanced technology. It has a wide range of inhalers - ‘Reliever’, ‘Preventer’ and ‘Controller’- for the treatment of asthma and COPD, segment that dominates Respiratory category. The company is pioneer in CFC free medical inhalers. Azmasol (Salbutamol) is the leading inhaler brand in Bangladesh. Bexitrol F (Salmeterol Xinafoate + Fluticasone Propionate) and Decomit (Beclomethasone) inhalers are widely prescribed and trusted by millions of patients suffering from asthma and COPD. Three new HFA inhalers namely Aeronid HFA (Budesonide), Ipramid (Ipratropium) HFA and Iprasol (Salbutamol + Ipratropium) HFA were launched for the first time in Bangladesh. Nasomet (Mometasone) nasal spray was also launched in this year. 26generics 41presentations vITAmInS & mInERAlS Beximco Pharma has been the leader in multivitamin-mineral market since a long period of time offering a range of high quality products. Bextram Gold is one of the major brands in this segment which offers a combination of 32 vitamins and minerals. Other major brands include Bextram kidz, Momvit, Aristocal D, Aristovit B, and Bextram Silver. Neurocare, for the treatment of diabetic neuropathy, has received very good market response following its relaunch. 32 presentations OPhThAlmICS Beximco Pharmaceuticals Ltd. has introduced its Vision unit for producing ophthalmic products. The company has so far introduced 30 ophthalmic drops covering various therapeutic groups like Anti-infective, Anti-inflammatory, Artificial Tear, Anti-allergic, Anti-glaucoma and eye vitamins and minerals etc. Continuous enrichment of ophthalmic product range is going on. In the year 2010, Beximco Pharma has launched 07 Ophthalmic Drops which include Contra (Lomefloxacin), Evo (Levofloxacin), Olopan (Olopatadine), Xegal (Gatifloxacin), Tearex (Povidone), Glucovis (Betaxolol HCl) and Chlormet (Dexamethasone+Chloramphenicol). 17generics 11 presentations Annual Report 2010 21 Beximco Pharmaceuticals Ltd. 22 OUR PEOPLE Beximco Pharma owes its stories of success and accomplishments to its family of researchers, marketers, technicians and so forth, who have stood by the company through thick and thin. BPL workforce is charged with the life-force from highly skilled and dedicated professionals. Currently there are more than 2,500 employees working at BPL. The company has a strong pool of talent which includes professionals like pharmacists, chemists, microbiologists, and engineers. Our work environment is conducive to promoting professional skills through regular training programs and workshops. At BPL, we always work to attract and retain the best talent available in the industry. Keeping in line with our global ambitions, we have taken up long term Learning and Development Program for our employees to achieve global quality benchmarks. Our people–with their hard work, dedication and commitment to excellence–have led Beximco Pharma to new heights. Annual Report 2010 23 Beximco Pharmaceuticals Ltd. 24 Annual Report 2010 25 Manufacturing Capabilities Situated near Dhaka, the capital city of Bangladesh, our manufacturing site extends over an area of 23 acres. The site houses manufacturing facilities for producing various drug formulae in different strengths and delivery systems such as capsules, tablets, intravenous fluids, metered dose inhalers, ophthalmic drops, injectables and nebulizer solutions. The site has its own utility infrastructure to ensure adequate generation and distribution of electricity with an installed capacity of 10 MW, in addition to water purifying and liquid nitrogen generation facilities. Beximco Pharmaceuticals Ltd. 26 Annual Report 2010 27 Beximco Pharmaceuticals Ltd. 28 Oral Solid Dosage (OSD) Unit Our state-of-the-art Oral Solid Dosage unit is designed as per US FDA standards. The facility incorporates contemporary technological advancements with automated material handling systems and multilevel designs to enable gravity feed between various processing stages. The building architecture and design allows for enhanced efficiency as it ensures maximum engineering maintenance access without entry to production areas. This facility houses a total of five lines with an annual capacity to produce 5 billion tablets per shift. It has been audited and approved by regulatory authorities from Australia and the Gulf Cooperation Council, and is awaiting inspection and approvals from the US FDA and the UK MHRA, which would give Beximco Pharma access to the most stringently regulated markets in the world while providing advanced infrastructure for contract manufacturing opportunities. Annual Report 2010 29 Beximco Pharmaceuticals Ltd. 30 metered Dose Inhaler (mDI) Unit Beximco Pharma is among the first few companies in the world to make the transition from manufacturing CFC-based inhalers to the eco-friendly HFA based formulations, in compliance with the Montreal Protocol. The company is the largest producer of MDIs in Bangladesh, and it currently produces a popular inhaler brand of an MNC under a contract manufacturing agreement. The capacity for MDI production is being expanded in line with growing demand from overseas markets. The MDI units have been designed with technical collaboration from Pamasol, Switzerland to have an annual production capacity of more than 20 million canisters. Annual Report 2010 31 Intravenous (Iv) Fluid Unit Our Intravenous (IV) fluid unit is ISO 9001: 2008 certified. The facility utilizes FFS (Form-Fill-Seal) Bottel Pack ® aseptic system of PharmaPlan Germany, and produces a broad assortment of large volume parenterals (LVPs). Absolute sterile manufacturing conditions are rigorously maintained through a series of fully automated manufacturing procedures including robotics. As a line extension of this IV unit, the company has completed amino acid project to produce a range of parenteral nutrition products. Beximco Pharmaceuticals Ltd. 32 Annual Report 2010 33 Beximco Pharmaceuticals Ltd. 34 Injectable, Ophthalmic and nebulizer (IOn) Unit The ION unit was launched in August, 2009. A total of 30 products are produced in this unit which comprise a portfolio of 19 Eye Drops, 3 Nebulizer Solutions and 8 Injectables. Beximco Pharma’s ION products have received encouraging responses from the marketplace and consequently saw expansion to meet the growing demand. liquid, Cream and Ointment (lCO) BPL produces a wide range of pharmaceuticals which are available in syrup, suspension, cream and ointment forms. Currently the company produces 37 million units of liquid products, 6 million units of creams and ointments and 10 million units of suppositories per year. In addition, the company has diversified into innovative delivery systems such as dry powder inhalers, total parenteral nutrition, prefilled syringes and lyophilized products. Annual Report 2010 35 Beximco Pharmaceuticals Ltd. 36 Regulatory Approvals Over the years Beximco Pharma has established itself as a trusted source for prescription and OTC drugs. It always strives for quality, not only in the finished products but also in the manufacturing process itself. Beximco Pharma’s manufacturing facilities have undergone satisfactory audits by global regulatory bodies and thus have been awarded regulatory approvals including: • GMP clearance from Therapeutic Goods Administration (TGA) Australia for OSD, MDI and Spray. • GMP certification from Gulf Central Committee for Drug Registration, Executive Board of the Health Ministers’ Council of GCC states. • GMP certification from ANVISA, Brazil (Agência Nacional de Vigilância Sanitária) • GMP certification from INVIMA, Colombia (Instituto Nacional de Vigilancia de Medicamentos y Alimentos) GMP accreditation audit by an EMA regulatory authority was completed for our OSD and Ophthalmology units, and inspections and approvals from UK MHRA and US FDA are anticipated. Annual Report 2010 37 Beximco Pharmaceuticals Ltd. 38 R & D Beximco Pharma’s R&D team works meticulously towards creating generic formulations that are comparable to innovators’ formulations. Their dedication can be witnessed in their successful development of challenging formulations such as multi-layer tablets, CFC-free inhalers and sustained release formulations to name just a few. To add to that, Beximco Pharma was the pioneering local generic company to produce anti-retroviral drugs and to proactively launch CFC–free metered dose inhaler formulation. This year the team rolled out a particularly impressive portfolio of 34 new products. In terms of proprietary research, the company has a strong history in collaborative research with Ciba Specialty Chemicals of Switzerland and is currently establishing further international collaborations to reinforce its R&D capabilities. Annual Report 2010 39 Beximco Pharma has entered 45 countries to date and is set to further extend its global reach in the near future. Beximco Pharmaceuticals Ltd. 40 Global Footprint Beximco Pharma continues to explore export opportunities and to reinforce its footprint on a global scale, which currently covers five different continents. Alongside the continuous endeavour to strengthen the position in existing markets, BPL attempts to achieve dynamic growth worldwide. Beximco Pharma commenced its international operations with the export of API to Hong Kong in 1992 and formulation products to Russia in 1993. The company has received the ‘National Export Trophy’ (Gold) for an impressive three times. Since then, BPL has taken greater strides over the years to increase its footprints in international markets. In 2010, BPL successfully ventured into several new countries including South Africa (via contract manufacturing) and Netherlands Antilles, and registered 45 products in overseas markets. The company achieved export revenues of Tk 330.54 million, up 21.47% over 2009. The current expansion of this overseas portfolio includes prioritizing and directing marketing operations to focus more on highly regulated markets such as the European Union (EU), USA, Australia and GCC member countries for value added generics. As of 2010 Beximco Pharma has 322 products registered in Asia, 91 in Africa, five in Central and Latin America, and 22 in Middle East, while we are actively taking measures to register our products in attractive branded generic markets such as the CIS states and the EU countries. BPL’s products are highly trusted for their quality by physicians and consumers at home and abroad. With this acclamation BPL is supplying different formulations from its portfolio to renowned hospitals and institutions including Raffles Hospital, Healthway Medical Group & K. K. Women and Children Hospital in Singapore; Asthma Drug Facility (ADF) in France; CENABAST in Chile; and MEDS and Kenyatta National Hospital in Kenya. BPL is constantly investing in its state-of-the-art manufacturing facilities to significantly expand its capabilities to meet the regulatory requirements of developed countries. BPL has pursued approvals from different drug regulatory authorities, e.g. TGA (Australia), GCC (Gulf Council), ANVISA (Brazil) and INVIMA (Colombia), which highlights BPL’s credentials as it explores new opportunities in the export arena. The company has a clear vision to efficiently orient its activities to reach a much broader global base, with the dedication to provide high quality affordable generics for all and maintaining a solid track record of working to the highest ethical and professional standards. Annual Report 2010 41 Beximco Pharmaceuticals Ltd. 42 Corporate Citizenship At Beximco Pharma, Corporate Citizenship is at the very heart of our business processes and operations. Our commitment to building a healthier tomorrow by adding value to life is based on four foundations: Patients, Community, Environment and Accountability. Patients Our commitment to patients remains steadfast. Beximco Pharma was the first company to launch anti-AIDS drugs (ARVs) in Bangladesh. This initiative was started in an era when known cases of AIDS-affected patients in Bangladesh were too small to be considered commercially viable. Nevertheless BPL launched five anti-AIDS drugs in 1996 and started supplying these to government and non-government organizations at cost. Today, Beximco Pharma has more than 30 registered ARV drugs in its pipeline, some of which are in the final stages of development. The company donates a large amount of medicines to the underserved and the victims of natural disaster. In 2010, Beximco Pharma made a generous donation of Tk. 10 million worth of drugs to the nationwide health camp for medical treatment of the underprivileged. Beximco Pharma regularly takes part in awareness campaigns in the form of rallies, poster presentations and seminars to observe Asthma Day, World Hypertension Day, Diabetes Day, AIDS day etc, in addition to organizing and sponsoring scientific seminars and conferences for various associations and societies in medical disciplines. Through the FRF foundation, the company has also been engaged in philanthropic activities for over a decade, providing medical consultation and diagnostic support at cost. Community Every year, Beximco Pharma’s internship program for undergraduate students from various academic disciplines promotes the development of professional skills. Beximco Pharma is a strong advocate of good sportsmanship and in the year under review the company sponsored a major international event – the SAF games – as well as sponsoring the national cricket league. Annual Report 2010 43 Beximco Pharmaceuticals Ltd. 44 Environment With global warming on the horizon, we at BPL understand the significance of protecting the environment. Beximco Pharma strives to minimize its carbon footprint and its initiatives are directed towards minimizing emissions and waste from its manufacturing operations. The company is committed to providing a safe working environment for all its employees and its Safety, Health and Environment (SHE) program is based on a framework of consistent standards. Moreover, Beximco Pharma is among the very few in the region to have proactively made the transition away from CFC-based inhalers by adopting the eco-friendly HFA formulations. Accountability As a public limited company we appreciate the trust of our valued shareholders and investors. Therefore, we always strive for high performance with integrity. This year Beximco Pharma achieved substantial growth, once again surpassing the industry average. The company always strives to ensure the best utilization of funds and resources in order to maintain sustained growth and create shareholders’ wealth. Annual Report 2010 45 Strong Relationships Beximco Pharmaceuticals Ltd. 46 Strong Relationships Through Beximco Pharma’s eyes, at the core of every successful partnership is a professional relationship based on mutual trust and respect. We recognize and understand that our alliances and partnerships are a core component to accomplishing our strategic global aspirations. We firmly believe that the right alliances can contribute appreciably to the achievements of our partners as well as to our own vision and sustainable growth. Beximco Pharma has a successful track record of partnerships and alliances with global MNCs such as GSK, Aventis, Bayer AG, Upjohn Inc and Ciba. The company has successfully established its brand value within the medical community. The company seeks to further reinforce its relationships with all major stakeholders in the healthcare value chain. BPL differentiates itself by providing value added, academic services to the medical community in the form of seminars and symposia, clinical meetings, scientific publications and the like. We are in constant communication with doctors to ensure prompt feedback and meet any requests for academic services. Annual Report 2010 47 Post Balance Sheet Developments 11 new products launched in Q1, 2011 • • Registered four new products in overseas markets • The Amino Acid line has been completed • Dry Powder Inhaler project has been completed • Pre-filled Syringe (PFS) line is being installed • Beximco Group was the proud sponsor of ICC Cricket World Cup 2011 Beximco Pharmaceuticals Ltd. 48 Notice BEXIMCO PHARMACEUTICALS LIMITED 17, Dhanmondi R/A, Road No. 2, Dhaka-1205 Notice of the Thirty-Fifth Annual General Meeting Notice is hereby given that the Thirty- fifth Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held on Saturday, the 2nd July, 2011 at 12.30 p.m. at Beximco Industrial Park, Sarabo, Kashimpur, Gazipur to transact the following business: AGENDA 1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended 31st December, 2010 together with reports of the Auditors and the Directors thereon. 2. To elect Directors. 3. To declare 20% Stock Dividend. 4. To appoint Auditors for the year 2011 and to fix their remuneration. 5. To transact any other business of the Company with the permission of the Chair. Dated : May 18, 2011 NOTES : By order of the Board, (MD. ASAD ULLAH, FCS) Executive Director-Corporate Affairs & Company Secretary (1) (2) (3) The Shareholders whose names appeared in the Share Register of the Company or in the Depository Register on the record date i.e. 11th May, 2011, will be entitled to attend at the Annual General Meeting and to receive the dividend. A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy Form, duly stamped, must be deposited at the Registered Office of the Company not later than 48 hours before the time fixed for the meeting. Admission to the meeting room will be strictly on production of the attendance slip sent with the Notice as well as verification of signature of Member(s) and/or Proxy-holder(s). (4) No gift or benefit in cash or kind shall be paid to the holders of equity securities in terms of Clause (c) of the Notification No.SEC/SRMI/2000-953/1950 dated 24 October 2000 for attending the AGM of the Company. Annual Report 2010 49 Chairman’s Statement Dear Shareholders, I am delighted to report another excellent performance from Beximco Pharmaceuticals Limited (BPL). In 2010, despite a challenging global environment and stiff competition in the domestic market, we delivered a strong set of results and made progress towards achieving our strategic goals. Sales and Profitability The company continued to perform well and achieved significant growth in all key areas. During the year BPL achieved a net sales turnover of Tk. 6,490.85 million against Tk. 4,868.25 million in 2009 representing an impressive 33.33% increase while industry grew at 23.81% (Source: IMS 4th quarter 2010). Export turnover increased by 21.47% to reach Tk. 330.54 million in the same period. A number of new projects became commercially operational including our US FDA standard Oral Solid Dosage plant (two lines). As a result, a significant amount of depreciation and financial expenses related to these projects were charged as expenses in 2010. Despite the increase in expenses, the company maintained its profit growth. Profit before tax increased to Tk. 1,361.53 million from Tk. 867.46 million in 2009. Earnings per share (EPS) stood at Tk. 5.17 against adjusted EPS of Tk. 3.50 in 2009. Significant growth in sales, better product mix and stable local currency against the dollar up to the third quarter of the year contributed to this growth in profit. New Products, Regulatory Approvals and Overseas Market Registrations Our efforts to optimize the product portfolio continued throughout the year. Our focus on product innovation and healthcare needs saw the introduction of 34 new products in different dosage forms. To ensure expansion of our global footprint in the longer term and export led growth in the future, we registered new products in overseas markets and explored new territories. During the period we acquired an ANDA (Abbreviated New Drug Application) for one product to enter the US market. Currently the product is being manufactured by an overseas CMO (Contract Manufacturing Organization). Manufacturing at BPL’s plant will commence following receipt of GMP accreditation from the US FDA. During the year under review, we entered into several new countries and registered 45 new products (including dosage forms and strengths) overseas. We received regulatory approval from INVIMA (Colombia) for the MDI (Metered Dose Inhaler) and new OSD (Oral Solid Dosage) plants. Moreover, the GMP accreditation Beximco Pharmaceuticals Ltd. 50 BPL is committed to building value for shareholders – both short and long- term. Our efforts to add value to the business and thus to shareholders’ wealth will continue. Finally, I would like to thank our valued shareholders for their trust and confidence in BPL - their support is the driving force behind the growth and development of our business. My sincere appreciation goes out to each and every employee whose commitment, dedication and hard work remain at the core of all our achievements. I would also take this opportunity to acknowledge the support and co-operation we have received from our bankers, suppliers, customers, medical community, government agencies, regulatory bodies and everyone the company interacted with in conducting its business to date. Thank you all. A S F Rahman Chairman audit for the OSD and Ophthalmology facilities was carried out by an EMA regulatory authority. Investment for Sustained Growth their approval In 2009 shareholders gave to management to raise Tk. 4,100 million through the issuance of convertible preference shares to finance projects that will secure the long term sustainable growth of the company. In 2010, preference shares were converted into ordinary shares as per the issuance terms. A number of projects financed by the funds thus raised are either completed or nearing completion. Importantly, an additional three lines of the US FDA standard OSD facility and expansion of Ophthalmology unit were completed during the period under review. The expansion of the MDI facility with capacity to produce 20 million canisters of inhaler per annum is nearing completion. To support the increased electricity demand for these expansion programs, 2 MW power has been added to the existing capacity, bringing the total installed generation capacity to 10 MW. Construction of another 55,000 sft warehouse with space for 8,000 pallets has also been completed during the year. Other projects are also progressing as planned. Outlook Since the fourth quarter of 2010, Bangladesh currency against the US dollar started to depreciate, in contrast to the global trend of declining US dollar value. By the end of first quarter of 2011, depreciation of taka against dollar reached an upsetting level, if this trend continues it may present a challenge to the Company. We are working on strategies to effectively address rising prices of materials so that the impact on profit can be kept to a minimum. Retaining and expanding our domestic market share, which is our mainstay, continues to be an important marketing strategy. In addition to the domestic market, we are equally focused on realizing our export potential. Our investment in facilities, products and people, to achieve long-term sustainable growth through increased exports, will continue to be a key priority for the Company going forward. Annual Report 2010 51 ßY~JroqJPjr k´KfPmhj Kk´~ ßv~JrPyJflJrmOª, ßmKéoPTJ lJoJtKxCKaTqJux& KuKoPac fJr xJlPuqr iJrJ ImqJyf ßrPU IJPrJ FTKa èÀfôkNet mZr IKfâo TPrPZÇ k´KfTëu KmvõmJKe\q kKrK˙Kf S ßhvL~ mJ\JPrr fLms k´KfPpJKVfJ xP•ôS 2010 xJPu IJorJ IJoJPhr InLÓ uPãq ßkÅRZPf xogt yP~KZÇ ßTJŒJjLr ßTRvuVf uãqJ\tj S ßv~JrPyJflJrPhr kKrxŒh mOK≠Pf IJorJ IJoJPhr iJrJmJKyT xJluq xoMjúf rJUPf ßkPrKZÇ IJKo fJA IJjPªr xJPg 2010 xJPu ßTJŒJjLr xJKmtT TotTJP¥r FTKa xÄK㬠k´KfPmhj IJkjJPhr xJoPj Ck˙Jkj TrKZÇ Kmâ~ S oMjJlJ IJKgtT Cjú~j oJjh¥ fgJ Kmâ~, oMjJlJ, ßv~Jr k´Kf IJ~ AfqJKh k´KfKa ßãP© CPuäUPpJVq k´mOK≠ I\tPjr kJvJkJKv ßTJŒJjL xJKmtT mqmxJK~T TJptâPor èÀfôkNet ßã© xoNPy CPuäUPpJVq xJluq I\tj TPrPZÇ IJPuJYq mZPr ßTJŒJjLr ßoJa KmâP~r kKroJe 6,490.85 KoKu~j aJTJ pJ kNmtmfLt mZPr KZu 4,868.25 KoKu~j aJTJÇ IJoJPhr Kmâ~ k´mOK≠r yJr 33.33% pJ mJÄuJPhPvr Hwi Kv· UJPfr xJoKV´T k´mOK≠r yJr (IMS 2010 xJPur xmtPvw KrPkJat IjMpJ~L 23.81%) IPkãJ CPuäUPpJVq kKroJPe ßmvL FmÄ k´vÄxJr hJmLhJrÇ 2010 xJPu IJoJPhr r¬JKjS 21.47% ßmPz 330.54 KoKu~j aJTJ~ ßkÅRPZPZÇ IJkjJrJ \JPjj, PmvKTZM jfáj k´T· KmPvw TPr US FDA ÓqJ¥Jct Oral Solid Dosage Plant (hMA uJAj) F mZr mJKeK\qT C“kJhj ÊÀ TPrPZÇ lPu ImY~ S k´T· EPer xMh mJmh CPuäUPpJVq kKroJe UrY F mZr uJnãKf KyPxPm k´hKvtf yP~PZÇ FfhxP•ôS ßTJŒJjL xJluq\jTnJPm oMjJlJ I\tPj k´mOK≠r iJrJmJKyTfJ iPr rJUPf ßkPrPZÇ F mZr TrkNmt oMjJlJ yP~PZ 1,361.53 KoKu~j aJTJ pJ KmVf mZPr KZu 867.46 KoKu~j aJTJÇ 2009 xJPur ßv~Jr k´Kf IJ~ (EPS) 3.50 aJTJr fáujJ~ F mZr ßv~Jr k´Kf IJ~ (EPS) yP~PZ 5.17 aJTJÇ Kmâ~ ßãP© CPuäUPpJVq k´mOK≠, xKbT Pk´JcJÖ Koé FmÄ ßxP¡’r 2010 kpt∂ ‰mPhKvT oMhsJr KmKjo~ yJPrr K˙fJm˙J AfqJKh TJrPeA IJorJ FA xJluq I\tPj xão yP~KZÇ jfáj keq, IJ∂\JtKfT IjMPoJhj S r¬JKj Kjmºj \jxJiJrPer ˝J˙qPxmJr oJj Cjú~Pjr KjKoP• èjVfoJj xŒjú Hwi CØJmj FmÄ x÷JmjJo~ jfáj Hwi mJ\Jr\JfTrPe IJoJPhr k´PYÓJ IjqJjq mZPrr of 2010 xJPuS ImqJyf KZuÇ FrA iJrJmJKyTfJ~ IJorJ KmKnjú dosage forms -Fr 34Ka jfáj Hwi mJ\Jr\Jf TPrKZÇ hLWtPo~JPh IJoJPhr uãq yPò r¬JKj mOK≠r oJiqPo ßTJŒJjLr k´mOK≠ I\tjÇ FA uãqPT xJoPj ßrPU IJorJ jfáj jfáj mJ\JPr IjMk´Pmv S IJPrJ IKiT xÄUqJ~ IJoJPhr Hwi KjmºPjr TJptâoPT ßmVmJj TPrKZÇ IJKo Ifq∂ IJjPªr Beximco Pharmaceuticals Ltd. 52 xJPg \JjJPf YJA ßp, oJKTtj pMÜrJPÓsr mJ\JPr k´PmPvr uPãq ßmKéoPTJ lJoJtKxCKaTqJux& KuKoPac FTKa HwPir ANDA (Abbreviated New Drug Application)-Fr oJKuTJjJ â~ TPrPZÇ FA HwiKa mftoJPj FTKa KmPhvL CMO tT (Contract Manufacturing Organization) Tfí C“kJKhf yPòÇ nKmwqPf IJoJPhr C“kJhj ˙JkjJ US FDA -Fr xjh k´J¬ yPu HwiKa FUJPjA C“kJKhf yPmÇ IJPuJYq mZPr IJorJ TP~TKa jfáj ßhPv Hwi r¬JKj ÊÀ TPrKZ FmÄ 45Ka jfáj Hwi KmKnjú ßhPv KjmKºf TPrKZÇ IJoJPhr MDI (Metered Dose Inhaler) FmÄ jfáj OSD (Oral Solid Dosage) TJrUJjJ hMKa TuK’~Jr INVIMA Tfí tT IjMPoJKhf yP~PZÇ F ZJzJS OSD FmÄ Ophthalmology Unit -Fr tkPãr IKca xŒjú yP~PZÇ \jq EMA Tfí k´mOK≠r \jq KmKjP~JV ßTJŒJjLr hLWtPo~JhL iJrJmJKyT k´mOK≠ I\tPjr IKnk´JP~ VOyLf k´T·xoNPyr IgJt~Pjr \jq 2009 xJPu „kJ∂rPpJVq ßk´lJPr¿ ßv~Jr AxMqr oJiqPo 4,100 KoKu~j aJTJ xÄV´Pyr k´˜JPm IJkjJrJ oNuqmJj IjMPoJhj k´hJj TPrKZPujÇ 2010 xJPu FA ßk´lJPr¿ Pv~Jr xoNy vfJtjMpJ~L xJiJre ßv~JPr „kJ∂Krf yP~PZÇ FA fyKmPur oJiqPo IgJt~j TrJ k´T·xoNPyr IKiTJÄvA AKfoPiq xŒjú yP~PZ FmÄ TP~TKa k´J~ xoJK¬r kPgÇ CPuäUq ßp, US FDA oJjxŒjú OSD Plant -Fr IKfKrÜ KfjKa uJAj ˙Jkj FmÄ Ophthalmology Unit -Fr xŒsxJrPer TJ\ F mZPr xŒjú yP~PZÇ MDI Unit -Fr xŒsxJrPer TJ\S k´J~ xoJK¬r kPg pJ mZPr 20 KoKu~j TqJj Inhaler C“kJhPj xão yPmÇ jfáj S xŒsxJKrf k´TP·r IKfKrÜ KmhMq“ YJKyhJ ßoaJPf IJoJPhr mftoJj KmhMq“ C“kJhj ãofJr xPñ IKfKrÜ 2 ßoVJS~Ja ßpJV TPr ßoJa KmhMq“ C“kJhJj ãofJ 10 ßoVJS~JPa CjúLf TrJ yP~PZÇ FZJzJS 55,000 mVtláa jfáj Warehouse KjKotf yP~PZ pJ 8,000 kqJPua oJuJoJu iJrPe xãoÇ ImqJyf gJPT fPm C“kJhj mq~ mOK≠ ßoJTJPmuJ TPr oMjJlJr tj TrJ IJoJPhr \jq KmrJa YqJPu† yP~ hÅJzJPmÇ uãqoJ©J I\t TÅJYJoJPur mq~ mOK≠\Kjf F k´KfTëu Im˙J ßoJTJPmuJr \jq IJorJ KmKnjú ßTRvu KjP~ IV´xr yKòÇ mftoJPj IJoJPhr xJlPuqr oNu YJKuTJ vKÜ yPò ßhvL~ mJ\JPrr Kmâ~ k´mOK≠Ç FA k´mOK≠ ImqJyf rJUJr \jq k´fqJKvf mJ\Jr xŒsxJre TrJA 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KmKnjú xrTJrL k´KfÔJj S Kj~πT xÄ˙JxoNy xy xÄKväÓ xmJAPT pJrJ ßTJj jJ ßTJj nJPm IJoJPhr mqmxJK~T TJptâPor xPñ pMÜ IJPZjÇ IJkjJPhr xmJAPT ijqmJhÇ nKmwq“ x÷JmjJ 2010 xJPur ßvPwr KhT ßgPT cuJPrr KmkrLPf mJÄuJPhvL oMhsJr âoJVf ImoNuqJ~j ÊÀ y~Ç 2011 xJPur k´go k´JK∂PTr ßvPw ImoNuqJ~j CPÆV\jT kpJtP~ ßkÅRPZPZÇ F Im˙J pKh F Fx Fl ryoJj ßY~JroqJj Annual Report 2010 53 Report of the Directors to the Shareholders For the year ended 31 December 2010 The Directors are pleased to present their report to the shareholders together with the audited accounts of the Company for the year ended 31st December, 2010 along with Auditors’ Report thereon. Financial Results and Appropriation of Profit Net Profit After Tax Adjustment for depreciation on revalued assets Profit brought forward from previous year Profit Available for Appropriation Proposed dividend Profit Carried Forward Dividend Taka in Thousand 2010 2009 1,051,649 624,740 26,811 30,535 4,008,852 3,627,238 5,087,312 4,282,513 (419,613) (273,661) 4,667,699 4,008,852 The Board of Directors has recommended 20% stock dividend for approval of the shareholders for the year ended 31 December, 2010. Directors Mr. A. B. Siddiqur Rahman (Nominee of Beximco Holdings Ltd.) and Mr. Salman F Rahman, Directors of the company retire by rotation as per Articles 126 and 127 of the Articles of Association of the Company and being eligible offer themselves for re-election. Board Audit Committee Four meetings of the audit committee were held in 2010 to consider Annual Financial Statements for the year ended 31 December 2009, Quarterly Report for the period ended 31st March 2010, Half-Yearly Report for the period ended 30 June 2010 and Quarterly Report for the period ended 30th September 2010. The Committee comprises of Mr. M A Qasem as Chairman, Dr. Abdul Alim Khan and Advocate Ahsanul Karim as Members. Beximco Pharmaceuticals Ltd. 54 Auditors The existing Auditors, M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C. R. Datta Road, Dhaka-1205 who were appointed as Auditors of the Company in the Thirty-fourth Annual General Meeting of the Company has carried out the audit for the year ended 31 December 2010. M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C. R. Datta Road, Dhaka-1205, the Auditors of the Company retire at this meeting and has expressed their willingness to continue in office for the year 2011. Board Meetings and Attendance During the year 17 (Seventeen) Board Meetings were held. The attendance record of the Directors is as follows: Name of Directors Meetings attended Mr. A S F Rahman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. Salman F Rahman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. Nazmul Hassan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. Iqbal Ahmed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. M. A. Qasem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. O. K. Chowdhury. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. Abdul Alim Khan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. A. B. Siddiqur Rahman. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advocate Ahsanul Karim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 17 17 8 17 17 17 17 5 Statement of Directors on Financial Reports a) b) c) d) e) f ) The financial statements together with the notes thereon have been drawn up in conformity with the Companies Act, 1994 and Securities and Exchange Rules, 1987. These statements present fairly the Company’s state of affairs, the result of its operations, cash flow and changes in equity. Proper books of accounts of the Company have been maintained. Appropriate accounting policies have been consistently applied in preparation of the financial statements except those referred to in the financial statements and that the accounting estimates are based on reasonable and prudent judgment. The International Accounting Standards, as applicable in Bangladesh, have been followed in preparation of the financial statements. Internal Control System is sound in design and has been effectively implemented and monitored. There is no significant doubts about the ability of the Company to continue as a going concern. Annual Report 2010 55 Corporate Governance Compliance Report The pattern of shareholding Name-wise details Number of Shares held (i) Parent/Subsidiary/Associate companies and other related parties : Beximco Holdings Ltd. .................................................................................................................................... Bangladesh Export Import Company Ltd. .................................................................................................. New Dacca Industries Ltd. ............................................................................................................................ 14,921,108 1,760,349 4,865,858 (ii) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and their spouses and minor children : Mr. A S F Rahman, Chairman ......................................................................................................................... Mr. Salman F Rahman, Vice Chairman .......................................................................................................... Mr. Nazmul Hassan, Managing Director ...................................................................................................... Dr. Abdul Alim Khan, Director ...................................................................................................................... Dr. Farida Huq, Director ................................................................................................................................ Chief Financial Officer, Company Secretary and Head of Internal Audit and their spouse and minor children ......................................................... (iii) Executives ............................................................................................................................................................ 2,760,397 2,020,370 6,895 877,801 5,193 Nil Nil (iv) Shareholders holding ten percent (10%) or more voting interest in the company: The Bank of New York (GDRs’ Depository) ............................................................................................... 47,047,866 Key Operating and Financial Data The summarized key operating and financial data of five years is annexed. Corporate Governance Compliance Report In accordance with the requirement of the Securities and Exchange Commission, “Corporate Governance Compliance Report” is annexed. Thank you all. On behalf of the Board A S F RAHMAN Chairman Beximco Pharmaceuticals Ltd. 56 Corporate Governance Compliance Report Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/CMRRCD/2006/158/ Admin/02-08 dated 20th February 2006 issued under section 2CC of the Securities and Exchange Ordinance, 1969. (Report under Condition No.5.00) Condition Title Compliance Status Explanation for non-compliance Complied non-Complied with the condition 1.1 1.2(I) 1.2(II) 1.3 1.4(a) 1.4(b) 1.4(c) 1.4(d) 1.4(e) 1.4(f ) 1.4(g) 1.4(h) 1.4(i) 1.4(j) 1.4(k) 2.1 2.2 3.00 3.1(i) 3.1(ii) 3.1(iii) 3.2(I) 3.2(ii) Board Size Independent Directors Independent Directors’ Appointment Chairman & Chief Executive Directors Report on Financial Statements Books of Accounts Accounting Policies IAS Applicable in Bangladesh System of Internal Control Going Concern Deviation in Operating Results Key operating and Financial Data Declaration of Dividend Number of Board Meetings Pattern of Shareholdings CFO, HIA & CS Appointment Board Meeting Attendance Audit Committee Composition of Audit Committee Audit Committee Members Appointment Terms of service of Audit Committee Chairman of Audit Committee Audit Committee Chairman’s Qualification 3.3.1(I) Reporting to the Board of Directors 3.3.1(ii)(a) Report of Conflicts of Interest 3.3.1(ii)(b) Defect in the Internal Control System 3.3.1(ii)(c) Suspected infringement of Laws 3.3.1(ii)(d) Any other matter 3.3.2 3.4 4.00 (I) 4.00 (ii) 4.00 (iii) 4.00 (iv) 4.00 (v) 4.00 (vi) Reporting to the Authorities Reporting to the Shareholders Appraisal or Valuation Services Financial information system Book keeping or other services Broker dealer services Actuarial services Internal Audit services 4.00 (vii) Any other services √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Annual Report 2010 57 Key Operating and Financial Data Particulars 2010 2009 2008 2007 2006 Taka in thousand Authorized Capital .............................................................. 9,100,000 9,100,000 2,000,000 2,000,000 2,000,000 Paid up Capital ................................................................... 2,098,065 1,511,493 1,259,577 1,145,070 1,040,973 Total Sales .......................................................................... 6,490,847 4,868,255 4,010,167 3,597,025 3,702,317 Export Sales ....................................................................... 330,541 272,126 170,604 122,752 115,099 Gross Margin ...................................................................... 3,173,207 2,302,048 2,007,296 1,629,515 1,731,086 Profit Before Tax ................................................................. 1,361,532 Net Profit ............................................................................ 1,051,649 867,467 624,740 714,121 545,341 399,678 353,068 523,243 470,659 Fixed Assets (Gross) ........................................................... 18,191,956 15,621,366 14,291,850 10,516,030 9,885,840 Shareholders’ Equity .......................................................... 15,974,086 10,885,707 10,450,202 8,250,940 7,949,920 Dividend ............................................................................. Net Asset Value (NAV) Per Share ........................................ EPS/Restated EPS ............................................................. Market Price Per Share (at end of the year) ....................... Price Earning Ratio (Time) .................................................. 20% 79 5.17 135.1 26.13 15% 72 3.5 155.8 44.51 30% 83 3.61 167.7 46.45 15% 72 2.8 58.9 21.04 Number of shareholders .................................................. 93,371 80,189 65,556 53,892 Foreign Investors ................................................................ ICB including ICB Investors Account ................................. 57 899 54 890 54 885 60 879 15% 76 4.11 53.7 13.06 48,932 58 986 Sponsors, General Public & Other Institutions ................... 92,415 79,245 64,617 52,953 47,888 Number of employees ........................................................ 2,507 2511 2,310 2,384 2,403 Beximco Pharmaceuticals Ltd. 58 , 2 3 5 1 6 3 1 , Total Sales Profit Before Tax , , 7 4 8 0 9 4 6 5 5 2 8 6 8 4 , , , 7 6 1 0 1 0 4 , , 7 1 3 2 0 7 3 , , 5 2 0 7 9 5 3 , 7 6 4 7 6 8 , 1 2 1 4 1 7 , , 3 4 2 3 2 5 , 8 7 6 9 9 3 6 0 0 2 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 6 0 0 2 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 Fixed Assets (Gross) , 6 6 3 1 2 6 5 1 , , 0 5 8 1 9 2 4 1 , , 0 3 0 6 1 5 0 1 , , 0 4 8 5 8 8 9 , , 6 5 9 1 9 1 8 1 , Shareholders’ Equity , 6 8 0 4 7 9 5 1 , , 7 0 7 5 8 8 0 1 , , 2 0 2 0 5 4 0 1 , , 0 4 9 0 5 2 8 , , 0 2 9 9 4 9 7 , 6 0 0 2 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 6 0 0 2 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 Annual Report 2010 59 Shareholders’ Meeting The 34th Annual General Meeting (AGM) of the shareholders of Beximco Pharmaceuticals Limited was held on June 15, 2010. Mr. A S F Rahman, Chairman of the Company presided over the meeting. The performance of the company in 2009 and the future strategies were discussed in the meeting. The meeting among other agenda approved 15% stock dividend for the year 2009. The Chairman thanked the shareholders for their keen interest in and continued support for the company. Beximco Pharmaceuticals Ltd. 60 Shareholders’ Meeting The 34th Annual General Meeting (AGM) of the shareholders of Beximco Pharmaceuticals Limited was held on June 15, 2010. Mr. A S F Rahman, Chairman of the Company presided over the meeting. The performance of the company in 2009 and the future strategies were discussed in the meeting. The meeting among other agenda approved 15% stock dividend for the year 2009. The Chairman thanked the shareholders for their keen interest in and continued support for the company. Annual Report 2010 61 Value Added Statement For the year ended 31 December 2010 Auditors’ Report Value Added: Sales & Other Income Bought-in-Materials & Services Applications : Duties & Taxes to Govt. Exchequer Salaries and Benefits to Employees Interest to Lenders Dividend to Shareholders Retained by the Company Taka in thousand Tk. % 7,956,113 (3,403,766) 4,552,347 1,311,791 853,795 508,432 573,363 1,304,966 100 29 19 11 12 29 4,552,347 100 Retained by the Company 29 % Duties & Taxes to Govt. Exchequer 29 % Dividend to Shareholders 12 % Salaries and Benefits to Employees 19 % Interest to Lenders 11 % Beximco Pharmaceuticals Ltd. 62 Auditors’ Report To The Shareholders of BEXIMCO PHARMACEUTICALS LIMITED Introduction We have audited the accompanying financial statements of Beximco Pharmaceuticals Limited, which comprise of the Statement of Financial Position as at 31 December 2010, and the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards (IFRSs), Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA) and Bangladesh Standards on Auditing (BSA). Those standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) and Bangladesh Financial Reporting Standard (BFRSs), give a true and fair view of the state of the company’s affairs as at 31 December 2010 and of the results of its operations and cash flows for the year then ended and comply with the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations. We also report that: (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof ; (b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination of these books ; (c) the Statement of Financial Position ( Balance Sheet) and Statement of Comprehensive Income (Profit and Loss Account) dealt with by the report are in agreement with the books of account ; and (d) The expenditure incurred was for the purposes of the company’s business. Dhaka 28 April, 2011 M. J. ABEDIN & CO. Chartered Accountants Annual Report 2010 63 BEXIMCO PHARMACEUTICALS LIMITED Statement of Financial Position As at 31 December 2010 ASSETS Non-Current Assets Property, Plant and Equipment- Carrying Value Intangible Assets Investment in Shares Current Assets Inventories Spares & Supplies Accounts Receivable Loans, Advances and Deposits Short Term Investment Cash and Cash Equivalents TOTAL ASSETS EQUITY AND LIABILITIES Shareholders' Equity Issued Share Capital Share Premium Excess of Issue Price over Face Value of GDRs Capital Reserve on Merger Revaluation Surplus Retained Earnings Non-Current Liabilities Long Term Borrowings-Net off Current Maturity (Secured) Fully Convertible, 5% Dividend, Preference Share Liability for Gratuity & WPPF Deferred Tax Liability Current Liabilities and Provisions Short Term Borrowings Long Term Borrowings-Current Maturity Creditors and Other Payables Accrued Expenses Dividend Payable Income Tax Payable TOTAL EQUITY AND LIABILITIES Notes 2010 2009 Amount in Taka 4 (a) 3.3 & 5 6 7 8 9 10 11 12 13 14 15 4(b) 16 17 18 19 20 21 22 23 15,180,731,678 15,123,306,298 51,126,854 6,298,526 12,975,195,529 12,966,587,178 5,726,525 2,881,826 6,191,667,831 1,983,809,444 276,520,188 821,356,439 779,129,620 859,403,704 1,471,448,436 6,916,737,893 1,722,953,284 242,034,855 694,111,730 699,204,450 2,500,000,000 1,058,433,574 21,372,399,509 19,891,933,422 15,974,086,451 2,098,065,090 5,269,474,690 1,689,636,958 294,950,950 1,534,645,820 5,087,312,943 2,885,155,826 1,902,150,733 - 335,885,792 647,119,301 2,513,157,232 1,639,961,052 348,860,443 432,315,660 90,512,178 1,507,899 - 10,885,706,614 1,511,492,960 1,489,750,000 1,689,636,958 294,950,950 1,617,361,714 4,282,514,032 6,684,775,166 1,924,933,065 4,100,000,000 307,425,614 352,416,487 2,321,451,642 1,451,326,354 308,820,056 409,898,122 79,094,905 1,727,724 70,584,481 21,372,399,509 19,891,933,422 The Notes are integral part of the Financial Statements. Approved and authorised for issue by the board of directors on 28 April, 2011 and signed for and on behalf of the Board : Salman F Rahman Vice Chairman Nazmul Hassan Managing Director Dhaka 28 April, 2011 Beximco Pharmaceuticals Ltd. 64 Ali Nawaz Chief Financial Officer Per our report of even date. M. J. Abedin & Co. Chartered Accountants Annual Report 2010 65 Beximco Pharmaceuticals Ltd. 66 Annual Report 2010 67 Beximco Pharmaceuticals Ltd. 68 Annual Report 2010 69 Beximco Pharmaceuticals Ltd. 70 Annual Report 2010 71 Beximco Pharmaceuticals Ltd. 72 Annual Report 2010 73 Beximco Pharmaceuticals Ltd. 74 Annual Report 2010 75 Beximco Pharmaceuticals Ltd. 76 Annual Report 2010 77 Beximco Pharmaceuticals Ltd. 78 Annual Report 2010 79 Beximco Pharmaceuticals Ltd. 80 Annual Report 2010 81 Beximco Pharmaceuticals Ltd. 82 Annual Report 2010 83 Beximco Pharmaceuticals Ltd. 84 Annual Report 2010 85 Beximco Pharmaceuticals Ltd. 86 Annual Report 2010 87 Beximco Pharmaceuticals Ltd. 88 Corporate Information Operational Headquarters 19 Dhanmondi R/A, Road # 7 Dhaka 1205, Bangladesh Phone : +880-2-8619151, +880-2-8619091 Fax : +880-2-8613888 Email : info@bpl.net Website : www.beximcopharma.com Corporate Headquarters 17 Dhanmondi R/A, Road # 2 Dhaka 1205, Bangladesh Phone : +880-2-8611891 Fax : +880-2-8613470 Email : beximchq@bol-online.com Factory Tongi Unit 126 Kathaldia, Tongi, Gazipur 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) Public Relations IMPACTPR Legal Advisor Huq and Company 47/1 Purana Paltan Dhaka-1000 Bangladesh Auditors M. J. Abedin & Co. Chartered Accountants National Plaza 109, Bir Uttam C. R. Datta Road Dhaka-1205 Bangladesh Banker Janata Bank Ltd. Local office 1 Dilkusha C/A Dhaka-1000 Bangladesh For GDRs Nominated Advisor and Broker Libertas Capital Corporate Finance Limited 16 Berkeley Street London, W1J 8DZ Custodian HSBC Anchor Tower, 1/1-B, Sonargaon Road Dhaka-1205, Bangladesh Apartment # A-1, House # 17, Road # 4 Gulshan-1, Dhaka-1212, Bangladesh Depository Bank The Bank of New York Mellon Financial Dynamics Limited Holborn Gate, 26 Southampton Buildings London WC2A 1PB, UK 101 Barclay Street New York, NY 10286 www.beximcopharma.com Winner Certified BEXIMCO PHARMACEUTICALS LTD. 

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