PACRA Maintains Entity Ratings of Martin Dow Marker Limited

Martin Dow Marker Limited (MDM or "the Company"), formerly known as Merck (Pvt.) Ltd., is a well-established player in Pakistan’s pharmaceutical sector. The Akhai family, with a longstanding presence in the industry since 1960, leads the business. MDM is engaged in the manufacturing and marketing of pharmaceutical products, with a diversified portfolio comprising over 70 brands. It operates across key therapeutic areas such as diabetes, cardiology, vitamins, analgesics, and antibiotics. The Company’s five flagship brands include Evion, Sangobion, Concor, Neurobion, and Glucophage, each contribute over PKR 1 billion in annual sales. MDM functions under the umbrella of Martin Dow Group, one of the largest locally owned pharmaceutical groups in Pakistan. The Group consists of four companies and houses prominent brands such as Lexotanil, Rocephin, and Glucophage, among others. Known for its strategic acquisitions and strong financial base, the Group reflects a commitment to sustained industry leadership. According to IQVIA, Pakistan’s pharmaceutical sector grew by 21.79% YoY in CY24, reaching PKR 962.5bln, primarily driven by price adjustments amid rising costs. However, unit sales remained flat, and reliance on imported APIs continues to expose the industry to FX volatility and supply chain risks. MDM has built a comprehensive product portfolio in both chronic and acute therapeutic segments. The Company’s leadership is rooted in two reputable business families Marker and the Akhai family—with governance primarily under the Akhai family, known for its strategic vision and professional excellence. The Group adheres to stringent quality standards and global best practices, underscored by alliances with multinational giants such as Roche, Merck, Sanofi, and Boehringer Ingelheim. MDM’s manufacturing facilities are cGMP-compliant, with ongoing investments in modernization and technology integration. In CY24, MDM reported topline growth of ~18%, with revenues reaching PKR 28.26 billion. The company recorded improved profitability, supported by enhanced operational efficiencies. This was reflected in better gross and net profit margins. MDM maintains an adequate corporate governance framework, while opportunities remain for further strengthening, particularly in board composition and formation of committees. The management team comprises seasoned professionals, supported by robust internal controls and compliance systems. Looking ahead, the Company is focused on launching new products aligned with evolving healthcare needs and is working toward expanding its export footprint. The financial risk profile of MDM is assessed as adequate, with moderate coverages, cash flows and an adequate working capital cycle. Capital structure is leveraged, where borrowings are mainly comprised of short-term for working capital requirements
The ratings are dependent on the sustainability of improvements in the profitability matrix and market share while retaining sufficient cash flows and coverages. However, it is essential for the Company to maintain adequate debt metrics and remain aligned with the shared financial projections. Improvement in governance structure remains important for the ratings.

About the Entity
Martin Dow Marker Ltd is a subsidiary of Martin Dow Limited. Martin Dow Limited holds 75% shareholding while Marker Family holds the remaining 25%. 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). Mr Ali Akhai is the chairman of the Board of Directors. MDM has a three-member board including the Chairman, Mr Javed Ghulam Muhammad the company's CEO, and Mr Syed Dawood – the independent Director.