LAHORE: Citi Pharma Ltd (CPHL) announced its financial results for the first half of the fiscal year 2026, reporting a notable increase in earnings per share (EPS) by 33% year-over-year, reaching Rs2.66. This growth was driven by revenue growth and margin expansion, as detailed in a corporate briefing held today.
According to JS Global, CPHL, a key player in Pakistan's active pharmaceutical ingredients (API) sector, aims to replace 50-70% of the nation's API import requirements for the molecules it produces. The company’s major clients include industry leaders such as GLAXO, ABOT, Bayer, FEROZ, SEARLE, and Martin Dow. The API segment remains the primary revenue source, contributing 80%, while the Formulation segment, which offers higher margins, significantly bolstered the company's net earnings during the period under review.
The briefing revealed that the gross margins for the API segment stand at approximately 15-16%, whereas the Formulation segment achieves gross margins of 18-20%. This period saw the introduction of five new APIs, aiding in reducing import dependency and maintaining a steady supply to clients. Looking forward, CPHL anticipates regulatory inspection of its Biotech Plant in April 2026, with operations expected to commence in the latter half of fiscal year 2027.
Additionally, CPHL is working towards domestic self-reliance in insulin production, targeting a market share of Rs3 billion in a Rs20 billion market, alongside developing oncology medicines for a Rs30 billion market. The company has also received approval from the Securities and Exchange Commission of Pakistan (SECP) to establish Citi Pharma REIT Ltd, a wholly-owned subsidiary, to manage and develop commercial properties in Lahore and Islamabad.
In another strategic move, CPHL is launching Citi Veterinary Ltd, aimed at producing pharmaceutical products for poultry and livestock. The first batch of products is scheduled for release in March 2026, with domestic production planned for fiscal year 2027. This new segment targets a market estimated at Rs345-400 billion, with an initial sales target of Rs1.5 billion.
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