Topline Securities organised the Pakistan Mid Cap Conference 2025. The day 2 conference began with a session on Searle Company (SEARL), where the key speaker was Mr. Mobeen Alam, Group CFO of SEARL.
Regarding the divestment of Searle Pakistan, management highlighted that the transaction has been completed and the losses have already been accounted for. Furthermore, more than half of the cash has been received, with the remaining amount to be received in instalments over the next two years.
SEARL’s revenue growth in FY25 was lower than anticipated due to working capital issues and higher prices. However, it is now back on track, and for FY26, management expects revenue growth of 23–24%.
After deregulation, the company has increased its prices across the board. The next price hike is scheduled for 1Q FY26. The Leverage position has improved over the last few quarters. The company remains committed to reducing it further, but this depends on its cash flow position.
The company plans to launch Semaglutide in all forms, with SEARL set to be the first to introduce the oral version within the next 2–3 months. The pen and vial/cartridge versions are expected to be launched in Q1 2026. The current market size of Semaglutide is estimated at Rs300–350mn and may be touching Rs1bn.
Export sales contribute 10–11% of total sales. Management expects this to improve to 12–13% as product registrations mature in various countries.
Overall industry volumes declined by 1-1.5% due to a sharp increase in prices and the absence of a pandemic last year. However, the situation has improved, with volumes recovering to around 4.5%. Management expects volumetric growth to reach 10% in fiscal year 2026.
Regarding capacity utilisation, SEARL is operating at 71% for liquids, 73% for tablets, 47% for capsules, 83% for powders, and 84% for injectables.
SEARL is ranked 3rd in volume and 5th in value terms in the Pakistani pharmaceutical industry as of January 2025.
Approximately 80% of SEARL’s portfolio consists of non-essential assets, while the remaining 20% is essential.
SEARL’s six brands have crossed Rs1 billion in annual sales, while eight brands have surpassed Rs500 million in yearly sales.
SEARL holds the No. 1 position in the Cardiovascular, Gynaecology, and Cough Suppressant segments. It ranks No.2 in Pain Management, Gastrointestinal, and Respiratory Care. Additionally, SEARL secures the No. 3 position in Neurology and Paediatrics, further reinforcing its diverse pharmaceutical portfolio.
Courtesy – Topline Pakistan Research
