Radiant Pharmaceuticals Limited (RPL), one of the top healthcare solution providers in Bangladesh, is set to buy a majority stake in Novartis Bangladesh Limited (NBL).
NBL has been operating in the country under a joint venture with the state-owned Bangladesh Chemical Industries Corporation (BCIC), with the entity owning 40 percent of its shares.
RPL will acquire the stake held by Novartis AG, a Swiss multinational pharmaceutical corporation that owns the remaining 60 percent shares of NBL.
Although NBL said in a press release that the transfer is subject to completion of necessary formalities and regulatory approvals, it did not provide any value for the transaction.
The announcement was made during a signing ceremony held yesterday between Kevin Zou, head of Asia aspiring markets at Novartis, and Lt Gen (Retd) Sina Ibn Jamali, managing director of RPL.
By transferring ownership to Radiant, Novartis aims to ensure that the Bangladesh operations continue under the current legal entity while maintaining the distribution of products to patients by the entity.
Md Nasser Shahrear Zahedee, chairman of RPL, told The Daily Star that the acquisition would bolster their portfolio and help boost exports and capacity-building.
“We will manufacture the original version of medicines and can export without patent,” he said.
He added that NBL, which employs around 500 people, has an annual turnover of about Tk 400 crore.
“We will retain the existing staff,” he added.
According to him, Standard Chartered Bank will finance 60 percent of the total cost of acquisition and the remaining 40 percent will be equity.
“This acquisition allows us to create long-term value and serves as a strong foundation for sustainable future growth,” he added.
In its statement, NBL said Novartis has expressed its commitment to help ensure business continuity and supply of innovative medicines in Bangladesh through NBL.
Under the agreement, Radiant is committed to ensuring that all permanent full-time employees of NBL will be retained under a similar compensation scheme for at least 3 years.
“In line with our global strategy, we have decided to transfer our shares in NBL to a leading local pharmaceutical company. Our unwavering commitment to providing patients with access to our innovative medicines remains strong as we continue to reimagine medicine to improve and extend lives in Bangladesh,” Zou of Novartis said.
“More importantly, the fair treatment of our associates remains a top priority, and we will be assisting Radiant to support them through this transition,” he added.
RPL is one of the leading manufacturers and exporters of medicines in the country. With over 6,500 employees, its portfolio comprises more than 100 registered brands and 12 global partners.