Topline Securities organised the Pakistan Mid Cap Conference 2025. The conference began with a session on Citi Pharma (CPHL), where the key speaker was Mr. Rizwan Ahmed, CEO of CPHL.
§ The company expects to start Insulin production early next year, with the inception phase scheduled to be completed by November–December 2025.
§ Management informed that all CPHL plants are currently operating at over 70% capacity utilization.
§ The company also has a vision to export its surplus capacity to the MENA region. The management also highlighted that CPHL’s prices are now competitive with those of India and China due to the large volumes they have built over the past several years.
§ CPHL has entered into an exclusive partnership with Murli Krishna Pharma of India to provide high-quality APIs. The company has successfully registered 12 products. One of these products, Omeprazole, is already in the market, while the rest are currently being sampled to valued customers.
§ The revenue impact from these products is expected in FY26, with an estimated annual contribution of US$7–10mn. Over the next five years, the potential cumulative revenue could reach up to US$50mn.
§ CPHL imports raw material for Omeprazole from Dubai and China.
§ The price of Paracetamol has declined from Rs3,000/kg to Rs950/kg. However, management expects a sharp rebound in Paracetamol prices due to the recent surge in crude oil prices.
§ CPHL generates 18–20% of its revenue from the formulation segment, while the remaining 80% comes from the API segment.
§ Within the formulation segment, Penicillin accounts for 30%, Cephalosporin 25%, Quinolones/fluoroquinolones 15%, and Paracetamol 30%. Previously, Paracetamol contributed around 70% of revenue in this segment, which has now declined to 25–30%.
§ CPHL has sustained its market share of 70–80% in the Paracetamol segment in Pakistan.
§ Management expects Insulin to have a very positive impact on revenue, given that around 30% of Pakistan’s population is diabetic. The company aims to capture institutional business in this segment.
§ Management highlighted that the Budget for FY26 is positive for CPHL, as the government has proposed reducing duties on some products, while others were already exempt.
Courtesy – Topline Pakistan Research
