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US drug recall drags Beximco Pharma shares down 3.34pc in Bangladesh
News that a US firm has recalled a Beximco Pharmaceutical drug over carcinogen has caused the Bangladeshi company’s shares to skid, snapping a nearly three-month rally.
Published : 13 Sept 2020, 02:07 PM
Updated : 13 Sept 2020, 02:07 PM
The 3.34 percent fall on Sunday was the steepest after a 4.71 percent drop on Jul 19.
Beximco Pharma ended the first trading day of the week at Tk 118.5, down from Tk 122.6 of Thursday.
Price of the company’s share reached Tk 124.8 last Tuesday with around 105 percent gain from Tk 61 on Jun 4.
It contributed the most to Sunday’s turnover of around Tk 13.3 billion on Dhaka Stock Exchange. Beximco shares worth Tk 590 million changed hands throughout the day.
The overall picture of the market was upbeat. The main index, DSEX, gained 82.76 points or over 1.65 percent to around 5094.06.
As many as 226 issues advanced, 106 declined while 25 remained unchanged.
On Saturday, bdnews24.com and other media reported that the New Jersey-based Bayshore Pharmaceuticals recalled two lots of the extended-release metformin tablets manufactured by Beximco Pharmaceuticals after finding high levels of a probable carcinogen in the drug samples.
Metformin is the first-line medication for the treatment of type 2 diabetes, particularly in people who are overweight.
It came after the US Food and Drug Administration found unacceptable levels of N-Nitrosodimethylamine (NDMA) in one lot of metformin hydrochloride extended-release tablets, USP 750 mg, and recommended its withdrawal.
The problem is not related to their formulation or manufacturing process but “highly likely to be linked to API or its manufacturing process”, said Rabbur Reza, the chief operating officer of Beximco Pharmaceuticals, citing scientists.
Beximco does not manufacture metformin API or active pharmaceutical ingredient and source this from a different manufacturer, he told bdnews24.com in an email response.
Listed in 1986, Beximco shares are traded under the category “A”. Its market capital is Tk 49.72 billion, paid-up capital Tk 4.05 billion and reserve is Tk 20.26 billion.
Out of its over 405.5 million shares, directors hold 13.19 percent, organisational investors 36.44 percent, foreigners 34.07 percent and common investors 16.3 percent.
The company gave Tk 1.25 dividend per share against a profit of Tk 2.2 billion in 2017.
Its profit rose past Tk 2.54 billion while the dividend per share remained unchanged in 2018.
In 2019, Beximco Pharma profited Tk 3.03 billion and gave Tk 1.5 dividend per share.
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