Press Release
VIS Reaffirms Entity Ratings of Citi Pharma Limited
Karachi, December 29, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Citi Pharma Limited (‘CPHL’ or the ‘Company’) at ‘A/A1’ (Single A/A One). 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 ‘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 December 16, 2024.
CPHL was established on October 8, 2012, and began its journey in the pharmaceutical sector following the acquisition of Askari Pharmaceuticals (Private) Limited (APPL) from the Army Welfare Trust in 2013. This strategic acquisition enabled CPHL to inherit APPL's operations, focusing on the production and distribution of Active Pharmaceutical Ingredients (APIs) and formulation drugs. Transitioning into a public unlisted company in October 2020, CPHL achieved a significant milestone by listing on the Pakistan Stock Exchange (PSX) on July 9, 2021. Today, it stands as a key player in Pakistan’s pharmaceutical industry, renowned for producing high-quality APIs like Paracetamol. The Company operates across two core segments—APIs and pharmaceutical formulations—supporting the production of Finished Pharmaceutical Products (FPPs) by combining APIs with other essential compounds.
The assigned ratings incorporate strong positioning in the API segment of the pharmaceutical sector, which carries relatively low business risk due to stable demand and limited sensitivity to economic cycles. Sustained demand for locally manufactured APIs underscores the strategic importance of domestic production, further reinforced by supportive government policies aimed at import substitution. High entry barriers—arising from stringent regulatory requirements, compliance standards, and significant capital intensity—limit competitive pressures and contribute to industry stability. The rating also reflects steady revenue growth and improving margin profile, driven by the Company’s gradual diversification into higher-margin formulation products through proprietary brands and institutional sales, alongside expansion in nutraceutical exports. Strategic collaborations with international partners, including Murli Krishna Pharma (India) and Hangzhou Newsea Technology Co. Ltd (China), are expected to enhance operational efficiency through technology transfer and automation, while also supporting medium-term international expansion.
While client and product concentration remain key considerations, management initiatives aimed at broadening the customer base and diversifying the product portfolio are expected to mitigate these risks over time. CPHL maintains a sound liquidity and profitability profile, supported by prudent financial management and adequate short-term credit lines. The assigned rating further incorporates the intended use of STS-3 proceeds toward working capital support and retirement of the previously issued short-term sukuk, with continued maintenance of a comfortable liquidity profile remaining a key rating consideration.
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