In a notice to Pakistan Stock Exchange, Ferozsons Laboratories has notified that Board of Directors of the company has decided to expand the capacity of its subsidiary BF Biosciences Limited (“BFBL”). Ferozsons have 80% ownership in the subsidiary Company.
BF Biosciences Limited intends to install a second manufacturing line to cater to the production of biologicals and non-biologicals injectables products (both liquid and lyophilized).
BFBL has finalized negotiations with the supplier to purchase the manufacturing line and has also secured firm financing approvals from various financial institutions. As per the notice, being a relatively young pharmaceutical company, the financial institutions have required the corporate guarantee and charge on assets of the Ferozsons Laboratories, for which the BFBL has requested the Company to extend its support.
In its meeting held on January 19, 2020, the Board of Directors of the Company has considered and approved the request of BFBL for extending corporate guarantee and charge on assets and the same is recommended for shareholders’ approval in the upcoming Extra-Ordinary General Meeting.
Ferozsons Labs in its Annual report of 2020 has mentioned that, BF Biosciences started production and sales of Omega (omeprazole) intravenous injections along with Eritrogen (erythropoietin) 10000 IU during 2020. However, a number of other biological and non-biological registrations are still pending with the Drug Regulatory Authority of Pakistan for approval.
Once these applications are approved, the management is confident that these will further improve the Sales and Profit of the subsidiary in the coming years.
BF Biosciences Limited was established in 2009 as Pakistan’s first biotech pharmaceutical company when Ferozsons Laboratories Limited entered into a joint venture with the Bagó Group of Argentina to establish. BF Bioscience mainly manufactures Cancer and Hepatitis related medicines.
Ferozsons Lab has invested around Rs. 152 million in BF Bio-sciences against 80 per cent ownership in the company. Financial Performance of company improved in 2020 where Sales of BF Biosciences Limited closed at Rs. 628 million, depicting an increase of 40% over the last year. Net profit after tax for the year stands at Rs. 47 million against a net loss of Rs. 45 million last year.
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