Medipak Limited (‘Medipak’ or ‘the Company’), incorporated in Pakistan on January 14, 1982 as a public limited company. The Company’s registered office is located at 132/1 Quaid-e-Azam, Industrial Estate, Kot Lakhpat, Lahore.

Medipak was established in 1982 by Dr. Khalid J. Chowdhry & family with the founding philosophy of giving the best to life. The Company made a significant contribution to creating self-reliance within infusion therapy in Pakistan by pioneering the local manufacturing of quality and cost-effective products that have now been time-tested for decades. The Company has transitioned and is led by 2nd-generation family members.

Medipak is principally engaged in the manufacturing of IV infusion therapy life-saving products. It is also involved in manufacturing ophthalmic preparations, solid dosage forms, dialysis & irrigation solutions and medical devices. The Company’s production facilities were set up through technical collaboration with multiple MNCs, including Fresenius AG (Germany). The Company is ISO 9001,14001, 45001, IEC 17025, and 13485:2016 certified. 

Medipak is mainly owned by Sponsoring family where majority stake of 75.86% resides with Dr. Khalid J. Chowdhry and ~23.77% stake rests with other family members. A minor proportion of 0.37% rests with an individual member. This concentrated ownership structure highlights their strong commitment to long-term value creation and rigorous performance monitoring. However, it also indicates potential biases in decision-making and a limited range of viewpoints.

The current ownership structure appears to be secure, with no imminent anticipation of significant changes in shareholding. The sponsoring family maintains full control, holding approximately 99.63% stake. However, establishing a clearly defined and streamlined shareholding pattern among family members along with a formal documented succession plan, could further enhance the company’s stability and governance.

Dr. Khalid J. Chowdhry & family (prime sponsors) have strong business acumen. Medipak has been operating in Pakistan for a number of decades now and made its presence by pioneering the first integrated Infusion Solution and IV Administration Set manufacturing. Moreover, the 'Chowdhry Family' has ventured into different sectors of Pakistan.

Medipak Limited, the flagship entity of Medipak Group, maintains a healthy financial profile with substantial access to domestic and international markets. The sponsors’ ability to provide the support is considered good, should the need arise.

The board of Medipak Limited comprises four members, including Mr. Khalid J. Chowdhry (the Chairman), Mr. Nasir J. Chowdhry (Advisor), Mr. Naveed K. Chowdhry (the CEO), and Ms. Nosheen Khalid (Non-executive director). Notably, there are no independent directors, leading to a board dominated by the sponsoring family. This raises concerns about the lack of independent oversight and challenges to management, which could impede effective governance. However, all the directors have been associated with the board for many decades now and a few holds related DTP trainings.

The business is led by three highly experienced individuals with a combined professional expertise of 60+ years. Mr. Muhammad Khalid J. Chowdhry, the Chairman, is the driving force behind Medipak’s success, known for his visionary leadership and service on the boards of several companies. Mr. Nasir J. Chowdhry brings over 50 years of professional experience and holds directorships in other group companies. Mr. Naveed Khalid, the CEO, also possess extensive expertise in the industry, playing a key role in steering the company forward.

The board has created two sub-committees: i) Audit Committee and ii) Human Resource Committee to ensure effective governance. Board meetings of the Company are held quarterly in compliance with the principles of corporate governance, and all meeting minutes are documented properly.

M/S BDO Ebrahim & Co., are the external auditors of the Company. The auditors have expressed an unqualified audit opinion on the Company’s financial statements for June, 2024. The auditor is listed in Category “A” of the SBP’s panel of auditors. 

A well-defined organizational structure exists in the Company. The functions reporting to the CEO and MD are as follows: 1) Finance, 2) Marketing & Sales, 3) Administration, 4) IT, 5) Technical Services, 6) HRM, 7) Quality Assurance & Regulatory Affairs, 8) Plant Operations, 9) Material Management, and 10) Business Development. Each department is headed by an experienced professional.

Mr. Naveed K. Chowdhry (CEO) is equipped with a profound understanding of the IV industry and carries a wealth of experience of over 2 decades. He completed undergraduate studies at Cornell University (BA Econ’98) and holds graduate degrees from LUMS (MBA’01) and the London School of Economics & Political Sciences (MSc Fin & Eco ’02). He has been supported in the business by a weathered MD (family member), Ms. Naureen Khalid, having experience of leading multiple domains such as operations, marketing, business development, and finance for over 3 decades. She has graduated from LUMS (MBA’92) and further executive education from Harvard Business School (Owner/President Management Program’15). The CFO, Mr. Nasir, is a Fellow Chartered Accountant, contributing over 20 years of relevant expertise and a diverse skill set. This leadership is further assisted by a team of experienced professionals, ensuring good governance and strategic direction.

With the support of an experienced team of professionals, Medipak is building up its business strengths and increasing its footprint. The functions of the management are clear and well-defined to effectively achieve its underlying goals and objectives. Further, six management committees are in place to ensure control at all levels.

Business management operations at the Company are streamlined through SAP ERP solutions. The Company is presently using SAP B1. It has multiple operational modules to keep track of daily and monthly reports required by the management.

To ensure operational efficiency and appraisal of internal controls, the Company has an in-house internal control department that implements and monitors the policies and procedures of the Company.

Pakistan’s Pharmaceutical sector recorded a revenue of ~PKR 963bln during FY24 with a YoY growth of ~36.6% (FY23: ~PKR 705bln). The top 10 companies operating in the local market comprised ~48.2% of market share in the pharmaceutical sector, whereas the rest of the sector players made up ~51.8% during FY24. A total of ~662 companies are operating in the local pharmaceutical sector, including ~25 multinational companies in FY24. As of May, 2025, ~23 pharmaceutical manufacturers hold licenses to produce APIs. These companies together cater ~15.0% of API production, with the remaining 85.0% being imported. During FY24, pharmaceutical imports stood at PKR 245.6bln, marking a ~4.0% decline from ~PKR 255.9bln in FY23. However, in the 11MFY25, imports surged to ~PKR 304.1bln, reflecting a ~7.1% increase compared to the same period last year. The sector is dominated by local/ national companies which account for more than ~67% of the total market share in terms of their revenue. In FY24 total pharmaceutical exports were recorded at ~PKR 96.1bln (FY23: ~PKR 80.6bln) an increase of ~19.3% YoY. In 11MFY25, total exports rose to ~PKR 119.3bln, up by ~35.2% compared to the same period last year. The increase in exports during 11MFY25 is attributed to the government’s decision to deregulate non-essential medicines, which spurred investment, fostered innovation, and enabled competitive pricing, collectively enhancing the sector’s export performance. Production of pharmaceutical products such as tablets, capsules and injections rose marginally from ~18.9bln units in FY23 to ~19.9bln units in FY24, accounting for ~5.3% YoY increase. During 10MFY25, production of these products recorded an increase of ~6.3% YoY and clocked in at ~16.8bln (SPLY: ~15.8bln). Surging pharmaceutical exports and a relatively stable PKR mean higher revenue for companies, leading to increased profit margins. Furthermore, the demand for I.V. solutions in Pakistan has been steadily increasing due to the rising prevalence of chronic disease, the aging population, and the need for effective drug delivery methods.

Currently, there are numerous active and inactive players in the IV solutions segment with a total capacity of ~500mln units and the current production stands at ~250mln units during 9MFY25 in which Medipak holds a market share of ~12.46% as per the management.

During 9MFY25, the Company’s sales showed ~10.2% quarter-over-quarter decline compared to a growth of ~8.7% during 9MFY24, primarily due to ongoing BMR activities. Local sales continued to dominate the revenue mix, contributing ~94.6% of total revenue, while exports accounted for the remaining 5.4%.

During 9MFY25, the Company’s gross margin increased to ~29.1% (FY24: ~24.8%, 9MFY24: ~20.5%), reflecting better cost efficiency. However, the operating profit margin reduced to ~7.6% in 9MFY25 (FY24: ~8.1%, 9MFY24: ~4.4%), majorly due to higher operating expenses on a year-on-year basis. In contrast, the profit before tax margin improved in 9MFY25 and stood at ~4.8% as compared to ~1.2% in 9MFY24. This improvement is primarily driven by a reduction in finance cost during the period.

Despite the presence of numerous registered companies and intense competition in Pakistan’s IV solutions market, the Company maintains a pioneering position in the manufacturing of Infusion Solutions and IV Administration Sets. Medipak’s product portfolio plays a vital role in supporting the healthcare needs and overall well-being of the population. In recognition of this responsibility, the Company consistently undertakes routine BMR activities and proactively plans for future expansions to effectively meet evolving consumer demand.

Medipak’s capital needs emanate from financing inventories and trade receivables, for which the Company relies on internal cash flow generation and borrowings. During 9MFY25, the Company’s gross working capital days extended to ~148 days (FY24: ~125 days, 9MFY24: ~133 days, FY23: ~123 days, FY22: ~118 days). Subsequently, the net working cycle stood at ~127 days in 9MFY25 (FY24: ~110 days, 9MFY24: ~125 days, FY23: ~109 days, FY22: ~94 days).

Medipak’s interest coverage ratio has improved slightly from last year, reaching 2.9x in 9MFY25 (FY24: 2.3x, 9MFY24: ~2.0x, FY23: 3.5x, FY22: 3.0x), whereas the core debt coverage ratio also shows an upward trend, improving to 2.2x in 9MFY25 (FY24: 1.8x, 9MFY24: ~1.6x, FY23: 1.8x, FY22: 1.1x).

During 9MFY25, Medipak maintained a low-leveraged capital structure with a leverage ratio of ~20.2% (FY24: ~20.1%, 9MFY24: ~16.8%, FY23: ~21.6%, FY22: ~19.2%). Leveraging ratio remained unchanged year-on-year basis. The majority portion of the Company’s debt is comprised of short-term borrowings from various commercial banks.