Salman F Rahman leaving Beximco Pharma board

Beximco Pharmaceuticals Vice Chairman Salman F Rahman has agreed to step down from the company’s board of directors amid the country’s changed political landscape.

Beximco Pharma recently informed the Bangladesh Securities and Exchange Commission (BSEC) of Rahman’s decision, saying his departure was intended to protect the company’s business interests and shareholders from further damage.

The company said the adverse business environment it has faced following the political upheaval in Bangladesh was also a key factor behind the decision.

Beximco Pharma is now working on a new board that would include three representatives from the sponsor-director group, four independent directors, one director nominated by IFIC Bank, and the company’s managing director as an ex-officio member. 

The BSEC has reportedly responded positively to the proposed restructuring.

Foreign investors back board overhaul

Beximco Pharma is listed not only on the Dhaka Stock Exchange but also on the London Stock Exchange’s Alternative Investment Market (AIM). The company will therefore have to comply with the relevant UK listing requirements as it restructures its board.

Foreign investors in the company have also agreed to the plan to remove Rahman from the board in the interests of the company and its business, according to people familiar with the matter.

The BSEC had initially proposed including a representative of foreign shareholders on the reconstituted board. However, foreign investors did not agree to the proposal. The restructuring process is therefore moving forward with a larger number of independent directors instead.

Under London Stock Exchange rules, directors must undergo appropriate due diligence before being appointed. Beximco Pharma said in its letter to the BSEC that the process could take four to six weeks.
Move aimed at restoring business, reputation

Market participants say Beximco Pharma remains a significant company in Bangladesh’s pharmaceutical sector, but its business and reputation have come under pressure in recent years amid concerns surrounding Rahman’s ownership and influence.

They believe his departure from the board could help the company rebuild its reputation and strengthen investor confidence in its shares.

Rahman, a prominent businessman and former private industry and investment adviser to former prime minister Sheikh Hasina, was arrested following the political changeover in August 2024 and remains in custody.

Beximco Pharma reports Tk 222 crore profit

According to the company’s latest financial statement, Beximco Pharma posted a profit of Tk 222 crore in the January-March quarter of the current year. It reported a profit of Tk 694 crore for the financial year ended June 2025.

Listed on the stock market in 1986, Beximco Pharma has 30.13% of its shares held by sponsors. Rahman is among the company’s sponsors.  

Institutional investors hold 25.65 per cent of the shares, foreign investors 26.90per cent, and general investors 17.32per cent.

Rahman’s departure from the board will not alter the company’s ownership structure, but the proposed restructuring is expected to bring significant changes to its governance and management.