The Pakistan Credit Rating Agency Limited
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Raniya Tanawar

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PACRA Assigns Initial Ratings to Martin Dow Marker Limited

Rating Type Entity
Action Initial
Long Term A+
Short Term A1
Outlook Stable
Rating Watch -

Martin Dow Marker Limited (herein referred as "MDM" or the "Company") formerly known as Merck (Pvt.) Ltd, is a notable name in pharmaceutical segment of Pakistan operating since 1951. The Company operates under the umbrella of Martin Dow Group, one of the largest locally owned pharmaceutical companies, comprises three other companies and constitutes well-known brands under its domain: Rocephin, Concor, Evion & Glucophage. The group is known for its high-end acquisitions and investments, denoting good financial strength. After when Martin Dow Limited (the parent company) acquired Merck Pakistan from Merck Germany in 2016 and renamed it to Martin Dow Marker Limited – MDM, the Company achieved new levels of sustainable growth - both in terms of revenues and profitability. With an established strong foothold, the Company has positioned itself among the top 10 leading pharmaceutical companies of the industry. The leadership flows from its distinctive ownership that vest in the hands of two reputable families coming with enriched professional backgrounds; Marker’s & Akhai family, while MDM is mainly governed by the descendant of latter, demonstrating a profound business acumen. The industry is quality conscious driven by defined standards. The Company’s association and strategic alliances with renowned multinational groups, predominantly with Merck, Sanofi & P&G, gives it an edge to vie in a competitive environment. From time to time the Company has invested in upgrading its manufacturing facilities as well, bringing-in new technology. The assigned ratings takes comfort from a) low business risk profile of the Company given MDM being the only authorized licensed manufacturer of Merck’s products in Pakistan, b) a market leader in many therapeutic areas and c) diverse & balanced portfolio with a range of product offerings in its respective niche. The pharmaceutical industry has witnessed a high rate of sustained growth over the years. Lately, outbreaks of widespread pandemic has directed more focus towards health care and hygiene, making the use of medicines indispensable in our daily lives. Henceforth, the demand outlook continues to remain robust. The management is mindful of the corporate governance requirements and fulfils the applicable statutory criteria. The Company has marked its presence in local market as well as internationally. MDM’s core profitability is sustained over the periods in comparison with most of its peers. The financial risk of the Company is considered moderate as the likelihood of any significant changes in company’s debt structure appears thin in near times while in addition to this sufficient cashflow generation lends support to the ratings.
The ratings are dependent on upheld sustainable profits and market share while retaining sufficient cash flows and coverages. However, adherence to maintain its debt metrics at an adequate level is a prerequisite

About the Entity
Martin Dow Marker Ltd is the subsidiary of Martin Dow Limited. Martin Dow Limited holds 75% shareholding while remaining 25% is held by Marker Family. Martin Dow Limited is owned by the Akhai Family, mainly Ali Akhai – son of late Mr. Jawed Akhai (the founding chairman of Martin Dow Group)
The history of Martin Dow Marker Ltd, formerly Merck (Pvt.) Ltd in Pakistan began in 1962, Merck Pakistan became a part of Martin Dow Group in 2016 and was renamed as Martin Dow Marker Ltd.
Mr Ali Akhai took the position of Chairman after his father, Mr Jawed Akhai passed away in 2018. The three member BoD of MDM including the Chairman comprises Mr Javed Ghulam Muhammad the CEO of the Company and Mr Syed Dawood the independent Director.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.