Novartis, the last multinational drug firm, exits Bangladesh
After Novartis' exit, Indian Sun Pharma’s subsidiary Sun Pharma Bangladesh is the only remaining foreign drug maker in Bangladesh that has a local plant here
After the exits of western drug multinationals GlaxoSmithKline, Nuvista and Sanofi, now the Switzerland-based Novartis AG has signed an agreement to sell its entire 60% stake at Novartis Bangladesh Limited (NBL) to homegrown Radiant Pharmaceuticals.
Radiant confirmed the matter in a press statement issued today (5 December).
This is the third acquisition deal for Radiant which raised its annual turnover to around Tk2,200 crore in its one-and-a-half decades of operations and emerged as a top ten pharmaceuticals player in the country.
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"In line with our global strategy, we have decided to transfer our shareholding 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," Kevin Zou, head of Asia Aspiring Markets at Novartis, said in a press statement.
"The fair treatment of our associates remains a top priority, and we will be assisting Radiant to support them through this transition," he added.
Novartis has been carrying out its operations in Bangladesh since 1973 through a joint venture between Novartis and Bangladesh Chemical Industries Corporation (BCIC).
Radiant Chairman Md Nasser Shahrear Zahedee told The Business Standard that they would continue the Novartis legacy in NBL as it has been doing with Julphar Bangladesh Ltd which it acquired for Tk80 crore from the UAE investors in 2020.
He declined to disclose the deal value for the 60% NBL stake as the process is subject to regulatory approval.
TBS, however, learned from two different sources that Novartis AG was eying some Tk200 crore for its NBL stake earlier this year and Beximco Group was a potential candidate for the company then.
With over 6500 employees, Radiant portfolio comprises over one hundred registered brands and a dozen global partners, according to the press statement.
Novartis Bangladesh and its subsidiary Sandoz Bangladesh together have an annual turnover of around Tk400 crore in Bangladesh. 75% of the revenue comes from its locally manufactured products while the remaining one-fourth comes from imported products.
After Novartis' exit, Indian Sun Pharma's subsidiary Sun Pharma Bangladesh is the only remaining foreign drug maker in Bangladesh that has a local plant here.
European drug multinationals Roche and Novo Nordisk continue their sales of imported products in Bangladesh through subsidiaries.
Industry insiders said with a strong rise of local players, major multinationals gradually found themselves at a competitive disadvantage in Bangladesh and they preferred exits.
