Business Report :
Beximco Pharmaceuticals Ltd has stated that it is unaware of any specific reasons behind the recent decline in its share price.
In a statement filed with the Dhaka Stock Exchange (DSE) on Wednesday, the drug maker clarified that it has not engaged in any undisclosed transactions or made any announcements that could explain the fall.
From 7 July to 22 August, its share price dropped by 41% to Tk73.6 at the DSE. On Wednesday, its share closed at Tk76.70, which was 2.91% lower than the previous session.
The decline resulted in a significant reduction in Beximco pharma’s market capitalisation, which dropped by Tk2,150 crore to close at Tk3,421 crore.
Earlier, Beximco Pharma through a statement had informed the London Stock Exchange that its Vice-Chairman Salman F Rahman was arrested by the Dhaka Metropolitan Police on 13 August in connection with a criminal case. The company is a listed firm on the London Stock Exchange.
In the statement issued on 15 August, it said Salman was a private industry and investment advisor to the prime minister of the previous government, which has been replaced by an interim administration following a civil unrest in Bangladesh.
The previous prime minister, as well as a number of other ministers and senior leaders from the previous government, is also being investigated in similar cases, the company said.
The company emphasised that Salman holds a non-executive role in Beximco Pharma and is not involved in the day-to-day operations of the company.
On 13 August, in another statement, Beximco said its manufacturing and distribution facilities sustained no significant damage during the recent protests against the Sheikh Hasina-led government.
Beximco Pharma said while disruptions in various parts of the country had led to reduced distribution in the interest of employee safety and welfare, operations are now returning to normal levels.
“The interim government of Bangladesh has indicated that it intends to prioritise addressing any ongoing unrest, and we expect to resume normal distribution in the coming days,” the statement read.
Beximco Pharma had paid a 35% cash dividend to its shareholders for FY23. The company reported a net profit of Tk 461 crore for the same period.
In the first nine months of FY24, its earnings per share jumped by 20% to Tk9.75, compared to the previous year at the same time.