PACRA Assigns Initial Entity Ratings to Medipak Limited

Medipak Limited (‘Medipak’ or ‘the Company’) is a public limited concern specializing in the manufacturing and marketing of IV infusion therapy life-saving solutions sets. The ratings reflect Medipak’s long-established position in the local integrated IV Infusion & IV Administration Set markets. The Company was set up through a technical collaboration with Fresenius AG, Germany (a leading name in the global IV infusion and medical devices market). The IV infusions market in Pakistan is characterized by the presence of both MNCs and local manufacturers. The demand for IV solutions has been steadily increasing due to the need for effective and efficient drug delivery methods. IV infusion therapy is a well-established medical practice and is widely utilized in hospitals (primarily institutional demand). Back in 1982, Medipak made a contribution to creating self-reliance within infusion therapy in Pakistan by pioneering local manufacturing at the Kot Lakhpat (KLP) plant in Quaid-e-Azam Industrial Estate, with an area of 4.53 acres with a constructed area of 118,000 sq ft which includes a wide range of production facilities. During 2015, the Company carried out CAPEX to develop a second facility in Sundar Industrial Estate, built on 2 acres of land with a constructed area of ~100,000 sq ft (both facilities are cGMP-compliant). Medipak holds a nationwide marketing channel with over 200 distributors & 150 sales professionals. In the I.V. Infusions segment, the Company faces competition from both domestic and international players. As per management’s representation, it holds ~20% share in the local IV market. In 9MFY23, it registered cumulative sales growth of ~32.2% (FY22: ~25.2%). The Company’s sales function is a mix of more volume and better prices. Generally, pharmaceutical companies in Pakistan are highly dependent on imports to meet the demand for basic raw materials. The financial risk profile is demonstrated by good working capital management, improved coverages, & comfortable cash flows. Its capital structure is low-leveraged, mainly encompassing STBs.
The ratings are dependent on the sustenance of the Company’s position in its respective business niches and the consistently changing business environment. With revenue growth, profit margins, and prudent financial performance shall remain imperative.

About the Entity
Medipak Limited was incorporated in Pakistan on January 14th, 1982 as a public limited company. Dr. Khalid J. Chowdhry laid the foundation by entering into the manufacturing and marketing of infusion therapy. The Company is involved in the production of a full range of basic & specialized large-volume parenteral, dialysis & irrigation solutions, IV administration sets & medical devices, small-volume parenteral & injectables, ophthalmic preparations, and pharma solid dosage forms. Presently, the majority stake of ~77.24% lies with Dr. Khalid J. Chowdhry, followed by ~22.39% to family members, and ~0.37% to an individual member. BOD comprises 5 members – dominated by sponsoring family. Mr. Naveed K. Chowdhry, the CEO, is equipped with a profound understanding of the IV industry and carries a wealth of experience spreading over 2 decades. Ms. Naureen Khalid, the MD, having experience of over 3 decades, and a group of qualified and experienced professionals from diversified fields make up the core management team.