Press Release
VIS Reaffirms Ratings of Noventa Pharma (Private) Limited
Karachi, 06 March, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of ‘A/A2’ (Single A/A Two) to Noventa Pharma (Private) Limited (‘NPL’ or the ‘Company’). Medium to long term rating of ‘A’ indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of ‘A2’ indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on November 13, 2024.
NPL has its roots in OBS Pakistan, which was established following the management buyout of Organon Pakistan in 2006. Over the years, OBS acquired Merck Sharp & Dohme in Pakistan and Sri Lanka, Schering Plough Pakistan, AGP, and Johnson & Johnson. OBS Pakistan also developed key partnerships and collaborations with Santen Pharmaceuticals and Vifor International. In 2019, Luna Pakistan (Private) Limited gained control of OBS, which merged into Luna in 2020. Later that year, The Searle Company Limited (TSCL) acquired OBS Pakistan, leading to its rebranding as Searle Pakistan Limited (SPL) in 2021, following its transition to a public unlisted company. In January 2025, IJARA Capital Partners Limited (ICPL) led consortium acquired 90.61% shareholding of TSCL in Searle Pakistan Limited (SPL). IJARA and its consortium already owned 9.39% shareholding of SPL. This acquisition was conducted under a leveraged buyout (LBO) structure via a special purpose vehicle (SPV), namely NPL, incorporated on August 30, 2024. NPL will be merged subsequently with SPL.
The assigned ratings reflect NPL strategic positioning within Pakistan’s pharmaceutical sector, strong sponsors support from IJARA Capital Partners Limited (ICPL) and well experienced management. The pharmaceutical industry is characterized by stable demand fundamentals, low cyclicality, and resilience to economic downturns. However, input cost volatility remains a key sectoral challenge. NPL benefits from a portfolio of established and well-recognized brands, particularly in chronic and high-value therapeutic segments, which underpin revenue stability and long-term growth prospects. Profitability has demonstrated meaningful recovery, supported by margin expansion, disciplined cost management, reduced finance costs, and a more focused product mix. While revenue contraction was observed due to planned adjustments in distribution and inventory management, this is assessed as a temporary measure rather than a structural weakness. Financial risk has elevated due to the leveraged acquisition structure, resulting in higher debt levels and tighter liquidity. However, improved cash generation provides some comfort to debt-servicing capacity in near-term though expected to weaken subsequently. Going forward, the ratings remain contingent upon the Company’s ability to achieve projected revenue growth, sustain margin improvements, manage working capital efficiently and retain profitability.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporate Rating:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf