Press Release
VIS Reaffirms Entity Ratings of The Searle Company Limited
Karachi, September 30, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of The Searle Company Limited (‘TSCL’ or the ‘Company’) at ‘AA-/A1’ (Double A Minus/A One). Medium to long term rating of ‘AA-’ indicates high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable.’ Previous rating action was announced on July 10, 2024.
TSCL, incorporated in 1965 and listed on the Pakistan Stock Exchange since 1993, manufactures and markets pharmaceuticals and consumer healthcare products. As of May 2025, the Company ranked fifth by value and third by volume in the domestic pharmaceutical market with a share of 4.1%. Its portfolio predominantly includes pharmaceuticals, with emphasis on established therapeutic areas and expansion into biosimilars and intravenous therapies. TSCL is part of the International Brands Limited (IBL) Group, which holds a controlling stake of 50.25% in the Company, and maintains an investment portfolio representing 46.6% of its non-current assets as of March 2025. During the period, the Group also completed the disposal of its subsidiary, Searle Pakistan Limited (SPL).
The assigned ratings to TSCL reflect its established market position in Pakistan’s pharmaceutical sector, well-diversified therapeutic portfolio, and continued sponsor support from the IBL Group. The Company has sustained topline growth and healthy gross margins; however, net profitability has been constrained by the leveraged buyout of its subsidiary and further suppressed by one-off impairment charges on its divestment. Sector fundamentals remain favorable, underpinned by resilient demand, ongoing pricing reforms, and growing export potential, though exposure to exchange rate volatility and uncertainty around the continuity of pricing deregulation pose risks. TSCL’s strengthened capital structure, improved liquidity profile, and strategic entry into higher-margin segments such as biosimilars are expected to underpin earnings stability and support medium-term growth.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf