Karachi: Citi Pharma Ltd (CPHL) held an analyst briefing session to outline its recent business performance and future plans. The company is progressing with several strategic initiatives, including the development of a biotech insulin manufacturing plant and the formation of a new real estate investment trust management company. Financial results for the first half of fiscal year 2026 showed a significant increase in net sales and profits.
According to JS Global, CPHL's insulin manufacturing plant, currently in trial production, is set for a regulatory inspection by the Drug Regulatory Authority of Pakistan in April 2026. This step is essential before the plant can commence commercial operations, targeting a domestic insulin market valued at approximately Rs20 billion. Additionally, CPHL has received approval from the Securities and Exchange Commission of Pakistan for its new venture, Citi REIT Management Company, with the formation expected within six months.
The financial results for 2QFY26 revealed a 23% year-on-year increase in net sales, amounting to Rs4.3 billion, driven by higher sales of formulation products and improved production efficiencies. For the first half of the fiscal year, sales reached Rs7.7 billion, reflecting a 14% year-on-year rise. The company's revenue mix comprises 80% active pharmaceutical ingredients and 20% formulation products. The company aims for the formation segment revenue to hit Rs4 billion by December 2026, having already secured Rs3 billion in revenue.
Gross margins have also seen an improvement, rising to 22% from 15% in 2QFY25, attributed to better inventory management. CPHL plans to enter the animal health and livestock pharmaceutical market through its subsidiary, Citi Veterinary Limited, aiming for Rs1.5 billion in revenue in its first year. The company is utilizing toll manufacturing to manage its product portfolio as the plant becomes operational.
CPHL is taking steps to establish a Bioequivalence center in Pakistan, incorporating bioanalytical laboratories and a 100-bed affiliated hospital, creating a fully integrated research platform. The company's net profit for 2QFY26 was Rs404 million, up by 58% year-on-year, bringing the half-year total to Rs608 million, a 32% increase year-on-year. CPHL is trading at a forward price-to-earnings ratio of 19.3x for FY26 and 13.5x for FY27.
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