PACRA Assigns Initial Entity Ratings to BF Biosciences Limited

BF Biosciences Limited (“BFBIO” or “the Company”) is Pakistan’s first biotech formulation company and is primarily engaged in the manufacturing, marketing, and distribution of biological and non-biological medicines in both liquid and lyophilized injectable forms. BFBIO distinguishes itself by producing life-saving medicines related to various therapeutic areas, i.e., Hepatology, Chronic Kidney Diseases, Anti-fungal/Oncology, Cardiology, Diabetes, Dermatology, Gastroenterology, and Antivirals. The Company operates a state-of-the-art manufacturing facility designed and installed by a leading European firm specializing in the design and installation of Pharmaceutical and Biotech manufacturing facilities, Telstar Projects, to meet the stringent standards of EU, USFDA, and GMP requirements. BFBIO’s product portfolio is further enhanced through its strategic collaboration and partnership with Bago Group, a renowned Argentine multinational conglomerate founded in 1934. Specializing in the pharmaceutical and healthcare sectors, Bago Group operates numerous production facilities worldwide and operates a dedicated scientific R&D center in Argentina. The assigned ratings also draw comfort from its association with its parent organization, Ferozsons Laboratories Limited, a key player in the pharmaceutical industry with multiple strategic alliances and a well-established market presence. BFBIO’s product mix is focused primarily on chronic therapies, comprising approximately 60% non-biological and 40% biological products. Its leading brands include Peg-INF, Sematide, Ferulin, Icon, Rifaxa, Eritrogen, and Vorif. The Company upholds a strong corporate governance framework, supported by well-defined policies and procedures that enable effective oversight and decision-making by the Board of Directors. Its management team comprises industry professionals with extensive experience, while adequate internal control and compliance mechanisms are implemented across the organization. During CY24, Pakistan’s pharmaceutical sector recorded a ~22% year-over-year growth, reaching total revenue of PKR 962bln. This expansion was largely supported by price adjustments approved by DRAP and stabilization of the Pakistani Rupee (PKR)—critical for an industry heavily reliant on imported active pharmaceutical ingredients (APIs). During 1HFY25, BFBIO posted a revenue growth of ~48.3%, primarily driven by increased volumes. Gross margins improved slightly to ~43.7% (FY24: ~41.9%), while net margins reduced and stood at ~7.2% (FY24: ~10.5%). BFBIO’s financial risk profile is characterized by moderate coverage ratios, cash flow generation, and working capital cycle. The capital structure is leveraged, with borrowings primarily consisting of long-term debt to support CAPEX.
The ratings are dependent on the sustainability of the growth trajectory in the topline and profitability matrix. The adequacy of cash flows and the coverages remain imperative. Furthermore, the consistency in the performance indicators, as illustrated in the shared financial projections, will continue to be paramount.

About the Entity
BF Biosciences Limited (BFBIO) is a publicly listed company operating in Pakistan’s pharmaceutical sector since 2006. The parent company, Ferozsons Laboratories Limited, holds ~57.36%, and the Bago Group holds a stake of ~14.34% in the Company. The Board of Directors comprises seven members, including four non-executive, two independent, and one executive director. Mr. Sebastian Martin Ferrarassi serves as the Chairman, while Mrs. Akhter Khalid Waheed holds the position of CEO. Both individuals bring over three decades of experience in the pharmaceutical industry, contributing significantly to the Company’s strategic direction and leadership.