AGP Limited (Hereinafter referred to as “AGP” or “the Company”) is a public limited Company that has been a key player in Pakistan's pharmaceutical sector since its establishment in 1989. It was officially listed on the Pakistan Stock Exchange (PSX) in 2018.

AGP Limited was formed in December 2015 through the merger of three companies: Apollo Pharma Ltd, AGP (Pvt.) Limited, and AGP Healthcare (Pvt.) Ltd. The newly established entity retained the name AGP Limited, as it encompassed significant operations, representing ~82% of the combined assets.

The Company produces medicines across ~128 branded segments and is actively involved in the marketing and sales of licensed products in partnership with international affiliates. AGP’s product portfolio features over Internal medicines, Pediatrics, Cardiometabolic, Gynae, Orthopedic, Neuropsychiatry and Nutraceutical. In CY25, Company launched its new products namely 1) Cecado- for treatment of Acute Diarrhea in Children and Adults, 2) Rigix Eye Drops-for eye allergy, 3) Cap-itra-for treatment of Fungal Infections, 4) Lipomax J- as an Iron + Vitamin Supplement, 5) Miroca- To treat Neuropathic Pain, primarily in Adults, 6) Rucalo-used to treat Chronic Idiopathic, 7) Ciafil-to treat Erectile Dysfunction, Benign Prostatic Hyperplasia, and for Pulmonary Arterial Hypertension. In CY24, AGP Limited significantly strengthened its footprint across multiple therapeutic segments through strategic product launches. In the Neuropsychiatry category, the introduction of AG-CETAM and Ag-Vono addressed key cognitive and mental health needs, reinforcing the Company’s commitment to this critical area of care. The Internal Medicine portfolio saw expansion with the launch of Bilazest 20mg Tablet, designed to meet a diverse range of patient requirements effectively. Within the Cardiometabolic segment, Rozet Ez was launched to support cardiovascular health, further enhancing AGP's offerings in chronic disease management. In the Nutraceuticals category, Peridots continued to gain market share by promoting digestive wellness and alleviating issues such as indigestion, acidity, and general stomach discomfort. Additionally, AGP introduced Mychitol Plus and Vitanem Plus to provide targeted nutritional support in the Gynecology and Orthopedics segments, respectively—underscoring the Company's focus on specialized care across life stages and conditions. AGP’s manufacturing capabilities include three facilities: two located in the S.I.T.E. area of Karachi and one situated on the Super Highway in Karachi.

AGP is primarily owned by OBS Group (OBS) through Aitken Stuart Pakistan (Pvt.) Ltd., which holds a ~55.80% stake. Other significant shareholders include Muller & Phipps Pakistan (Pvt.) Ltd (M&P). (~13.54%), Baltoro Growth Fund (BGF) (~4.03%), Aspin Pharma Limited (~4.79%), High-Q Pharmaceuticals (Pvt.) Ltd. (~3.84%), and the National Bank of Pakistan (~2.81%). The remaining shares are held by the general public.

The Company exhibits a stable and well-defined ownership structure, which is reinforced by the active involvement and strategic oversight of its founding sponsors. These sponsors bring with them a wealth of experience, a clear long-term vision, and a demonstrated commitment to the Company’s sustained growth and governance. Their leadership has played a pivotal role in shaping the organization’s strategic direction, operational efficiency, and overall corporate stability. In addition, the Company has maintained a reputable and resilient presence in the pharmaceutical sector for over thirty years. This longstanding tenure reflects not only its ability to adapt to the evolving dynamics of the industry but also its sustained commitment to quality, innovation, and regulatory compliance. The depth of industry knowledge accumulated over the decades, combined with an established network of stakeholders—including suppliers, distributors, and regulatory bodies—positions the Company as a credible and trusted player within the pharmaceutical landscape.

Mr. Tariq Moinuddin Khan, the founding force behind AGP and the visionary leader of the OBS Group, has played a transformative role in Pakistan’s pharmaceutical landscape. He commenced his professional journey with Organon Pakistan, the local subsidiary of AkzoNobel—a globally recognized Dutch chemical and pharmaceutical conglomerate. His early career at Organon laid the foundation for his deep industry insight and strategic thinking. Over the years, he has continued to solidify his reputation as a forward-thinking industry leader by forging multiple strategic alliances and overseeing several high-impact acquisitions. These initiatives have significantly contributed to the growth and diversification of both AGP and the broader OBS Group, underscoring his strong business acumen and long-term strategic vision within the pharmaceutical sector.

Established in 1963, OBS Group stands as one of Pakistan’s leading entities in the healthcare sector, with a distinguished track record spanning over six decades. As per IQVIA, the Group currently ranks 8th in terms of consolidated revenue within the domestic pharmaceutical market, reflecting its strong market presence and sustained performance. OBS Group has earned a reputation for its expertise in forming strategic partnerships with globally recognized pharmaceutical and healthcare companies. Its ability to foster long-term collaborations and engage in meaningful international alliances underscores the Group’s commitment to innovation, quality, and global best practices. With an extensive operational footprint across Pakistan, backed by substantial financial strength and organizational capabilities, OBS Group is well-positioned to extend strategic, operational, and financial support to AGP when required. This alignment ensures that AGP benefits from the Group’s broad industry experience, resource base, and collaborative network, enhancing its long-term growth prospects and resilience in a dynamic market environment.

The Board of Directors of AGP Limited is composed of seven members, reflecting a balanced representation of key stakeholders and governance best practices. The board includes two representatives from OBS Group—one of whom serves as the Chairman—alongside one nominee each from Muller & Phipps (M&P) and Baltoro Growth Fund (BGF). In addition, there are two independent directors, appointed to ensure objective oversight, and one executive director, namely the Chief Executive Officer. Mr. Tariq Moinuddin Khan, a seasoned industry leader and the driving force behind OBS Group, currently serves as the Chairman of the Board, providing strategic guidance and leadership at the highest level.

The Board of Directors (BoD) of AGP Limited comprises highly accomplished professionals, each bringing a wealth of experience in managing business operations across a range of industries. Collectively, the Board offers strategic depth, sound judgment, and a strong commitment to corporate governance. The independent directors, in particular, are widely respected for their subject matter expertise, extensive industry insight, and objective perspective. Their presence ensures that the Board benefits from informed, impartial oversight and adherence to best governance practices. At the helm, the Chairman brings over ~30 years of experience in the healthcare sector. Throughout his distinguished career, he has held several key leadership roles, demonstrating a consistent track record of strategic vision, operational excellence, and transformational leadership within the pharmaceutical and broader healthcare industries.

The Board of Directors convenes regularly in accordance with a predefined agenda designed to steer the company toward its strategic objectives and to ensure effective oversight of management performance. Each meeting is meticulously documented through comprehensive minutes, which include key deliberations, decisions made, and actionable follow-up items to ensure accountability and continuity. In line with best practices in corporate governance and to further strengthen its oversight capabilities, the Board has constituted two specialized committees: (1) the Audit Committee and (2) the Human Resource & Remuneration Committee. Both committees are chaired by independent directors, ensuring objectivity, transparency, and alignment with regulatory requirements. These committees play a critical role in supporting the Board’s governance functions by providing focused oversight on financial reporting, internal controls, risk management, human capital strategy, and executive compensation.

The Company changed its Auditors in CY24 and appointed M/s. Grant Thornton Anjum Rahman Chartered Accountants as the external auditors, who are listed in the category “A” on the State Bank of Pakistan's panel of auditors, and have issued an unqualified opinion on the financial statements for the year ended December 2024.Previous auditors of the Company were EY Ford Rhodes Chartered Accountants.

The organizational structure of the Company is comprised of nine functional departments, each led by skilled professionals (Directors or Controllers): 1)      Technical operations, 2) Marketing & Sales-A, 3) Marketing & Sales-B, 4) Business Development & Regulatory Affairs, 5)  Finance, 6) Quality Operations, 7) Information solutions, 8) Supply Chain, 9) Business Planning & Corporate Affairs, 10) Human Resource and Administration and 11) Business Optimization & Market Analysis. This well-defined hierarchy, along with clear roles and responsibilities, facilitates efficient operations and coordination. Currently, all key positions are filled.

AGP’s management team is composed of highly qualified professionals who bring a diverse set of skills and deep industry knowledge to the organization. Many members of the team have maintained long-standing associations with the Company, contributing to its operational stability and continuity of leadership. Mr. Muhammad Kamran Nasir has been appointed as the Chief Executive Officer. He is a Chartered Accountant by profession and a member of the Institute of Chartered Accountants of England and Wales (ICAEW). Mr. Kamran Nasir brings with him extensive expertise in corporate financial management, strategic planning, and organizational leadership. His appointment reflects the Company’s commitment to strong, experienced leadership as it pursues continued growth and value creation in the healthcare sector.

AGP has instituted well-defined reporting lines that support effective communication, accountability, and operational clarity across the organization. These structures are further reinforced by the establishment of a management-level Executive Committee (ECM), comprising the heads of all key departments. The Executive Committee plays a central role in the Company’s governance and operational framework. Its core responsibilities include overseeing day-to-day business operations, leading the annual budgeting process, and formulating, reviewing, and executing the Company's strategic initiatives. The ECM also ensures that strategic objectives are clearly communicated across the organization and that their implementation is monitored for alignment and efficiency. This integrated approach facilitates cross-functional coordination, promotes informed decision-making, and strengthens overall organizational performance.

AGP has implemented and is using all key modules of SAP (ERP suite). The suite provides a real-time end-to-end integrated solution for all operations. AGP Limited signed a Service Level Agreement (SLA) to ensure faster SAP issue resolution, process improvements, and user training. Key initiatives included SAP capacity planning, a new income tax module, and ongoing testing of SAP HCM integration with Decibel for employee data, recruitment, and performance management.

AGP has implemented a comprehensive Management Information System (MIS) designed to support effective decision-making and performance monitoring. The MIS includes detailed reports featuring key performance indicators (KPIs) and other critical business metrics. These reports are prepared on a monthly and quarterly basis and are reviewed by senior management before being submitted to the Chairman. This structured reporting process ensures timely oversight and alignment with the Company’s strategic goals. In addition, the Company has established a dedicated Internal Audit Department, which operates independently to ensure adherence to established policies, procedures, and regulatory requirements. The department plays a vital role in evaluating internal controls, identifying potential risks, and recommending improvements to enhance operational efficiency, accountability, and overall governance compliance.

The broader economic environment showed signs of stabilization in 2024, with a notable recovery in GDP growth, a significant reduction in the policy rate, stability of Pakistani Rupee against US Dollar and enhanced foreign exchange reserves supported by the IMF program. Moreover, the business confidence index has continued to show positive sentiments. The pharmaceutical sector has witnessed favorable growth, particularly following the deregulation of pricing for drugs not included in the National Essential Medicines List (NEML). This policy change allows drug manufacturers to adjust prices for non-essential medicines to offset rising cost of doing business in line with market dynamics, creating growth opportunities, particularly for those with a higher portfolio of non-essential products, thereby enhancing revenue potential. As per the Industry Report issued by IQVIA Solutions Pakistan Pvt. Ltd., a pharma research Company, the pharmaceutical industry in Pakistan reached PKR 1,008 bn in CY24 with a value growth of ~21.5% and unit growth of ~2.9%. The sector’s growth has been mainly attributed to a deregulatory policy introduced this year. The healthcare services industry is considered low-risk due to limited demand cyclicality. While Pakistan’s economy is showing signs of stabilization, challenges such as fiscal constraints, external debt obligations, devaluation of local currency, and global supply chain disruptions persist. Expected volatility in oil prices, due to supply and demand factors, are posing risks for global trade and commodity prices. Hence, future profitability may be impacted by macroeconomic challenges. The top ten pharmaceutical companies hold about ~49% of the market. However, the sector's reliance on imported raw materials (APIs) exposes it to currency fluctuations, while high borrowing costs from elevated interest rates hinder profitability. Additionally, regulated pricing limits the ability to pass on cost increases to consumers.

Despite facing ongoing economic and geopolitical challenges, AGP remains firmly committed to achieving sustainable growth and expanding its share of the pharmaceutical market. The Company is strategically leveraging its well-established product portfolio along with group-level synergies to maintain a competitive edge and outperform overall market growth. In parallel, AGP is investing heavily in research and development (R&D) to bring innovative medications to market. These efforts are focused on addressing both existing and emerging therapeutic needs, allowing the Company to enhance its presence in the domestic healthcare sector while also positioning itself for entry into new international markets. To further accelerate growth, AGP is actively exploring strategic acquisition opportunities. These potential acquisitions are aimed at driving inorganic growth, expanding product offerings, and increasing operational capabilities across multiple markets. Overall, AGP's forward-looking strategy combines organic expansion through innovation with inorganic growth through acquisitions, reinforcing its vision to become a leading pharmaceutical player both locally and globally. AGP has a blend of its own range of branded generics and products licensed from principals of international repute. Their group Company OBS stood at No. 08 according to the latest IQVIA reports with a consolidated topline of PKR 41bln. During the CY24, AGP enhanced its market share by more than ~7% over the last year, holding ~5.83% market share in its served pharma market comprising of the same competing molecules, among products sold in 2024. AGP’s flagship brands hold major market share among their same molecular categories. To diversify its revenue streams and reduce dependence on its top-performing brands, AGP has adopted a strategic launch philosophy centered on long-term, sustainable growth. This approach involves the careful selection and introduction of new brands with strong commercial potential, including those with the potential to become blockbuster products. As part of this strategy, AGP is actively working on the launch of New Chemical Entities (NCEs), while also enriching its product portfolio through line extensions and support brands that complement its existing offerings. In addition, the Company is expanding into high-growth therapeutic segments to tap into emerging healthcare needs and broaden its market footprint. A critical component of AGP’s overall growth strategy is its sharpened commercial focus. By aligning its marketing, sales, and product development functions more closely with market demands, the Company aims to enhance its competitive positioning and drive consistent, long-term performance.

During IHCY25, the Company recorded sales of PKR ~12,717mln. In CY24, Company reported sales of PKR ~25,034mln in comparison to sales of PKR ~18,743mln reflecting an annualized growth rate of ~34%. This growth was primarily driven by domestic market expansion and increased exports. The Company's revenue remains concentrated among its key offerings, with the top 10 products contributing approximately ~70% of total sales during the reporting period. This highlights the strong market demand and continued success of the Company’s core product portfolio.  Among the main contributors to sales are the following flagship products:

                       RIGIX, an antihistamine used for allergy relief,

                      OSNATE-D, a calcium and vitamin D supplement,

                      CECLOR, a broad-spectrum antibiotic,

                      ANAFORTAN PLUS, a combination drug for pain and spasm management, and

                      SPASLER-P, a medication used to relieve pain and muscle spasms.

These products continue to play a central role in the Company’s commercial performance and are expected to remain key growth drivers going forward.

OBS AGP- In CY24, OBS AGP delivered robust financial results, with net sales increasing by ~23.7% to PKR 6,237mln, driven by market expansion and volumetric growth.

OBS PK- In CY24, OBS Pakistan recorded outstanding financial growth, with net sales up ~93.5% to PKR 3,237mln, driven by volumetric gains and team expansion.

During IHCY25, AGP maintained a stable gross margin of ~58%, consistent with the margin reported in CY24. This reflects an improvement from CY23, when the gross margin stood at around ~54%. This stability was supported by enhanced efficiency, price increases and the addition of new products to the Company’s sales mix, which helped offset potential cost pressures. The Company’s operating margin also remained almost stagnant supported by cost optimizations and operational efficiencies at ~28% in IHCY25 compared to ~29% in CY24. AGP demonstrated a notable improvement in its net profit margin, which rose to ~13.3% in IHCY25 from ~11.8% in CY24. This improvement is somewhat counterintuitive, as it occurred despite a rise in finance costs. The increase in net margin is primarily attributable to enhanced top-line performance, which helped absorb the impact of higher financial expenses. The elevated finance costs were largely the result of borrowings undertaken to fund recent acquisitions of subsidiaries, coupled with the impact of high prevailing interest rates. Nonetheless, the Company’s ability to improve its bottom line in this environment highlights strong operational execution and effective cost management at the net level. OBS AGP’s gross profit rose ~20% to PKR 3,337mln, supported by cost efficiencies and a focus on higher-margin products. Operating profit grew by ~16% to PKR 1,536 mln, while finance costs dropped ~22% due to better debt management. As a result, Profit After Tax surged ~42% to PKR 726mln. These results reflect the success of strategic efforts in innovation, market expansion, and cost optimization. OBS PK’s gross profit surged ~114% to PKR 2,363mln, while operating profit rose ~132% to PKR 1,730mln, reflecting strong cost control and market expansion. Profit After Tax grew ~16% to PKR 267mln, underscoring solid profitability. These results position OBS Pakistan for sustained long-term success.

AGP is strategically positioned to benefit from group-level synergies, which are expected to enhance its operational efficiency and overall financial performance. These synergies are being realized across several key areas. Firstly, the Company is likely to secure bulk purchase discounts on key raw materials such as Active Pharmaceutical Ingredients (APIs) and excipients, owing to consolidated procurement at the group level. This not only reduces input costs but also strengthens the Company’s negotiating power with suppliers. Secondly, AGP stands to benefit from improved banking relationships, facilitated through the broader group’s financial standing and reputation. These enhanced relationships may lead to more favorable financing terms, including lower borrowing costs, better credit facilities, and smoother access to capital.  Thirdly, AGP is leveraging the group's infrastructure to enable strength-wise parking of pharmaceutical products. This refers to the strategic allocation and manufacturing of products based on formulation strengths (e.g., dosage forms and potencies), allowing for more efficient use of production capacity across group entities and reducing operational redundancies. Lastly, the recent acquisition of the Viatris product portfolio, which was previously owned by Pfizer, is expected to significantly expand AGP’s therapeutic offerings and market reach. This acquisition adds value through access to well-established brands, potential for cross-selling, and entry into new market segments. Together, these synergies are anticipated to support AGP’s growth trajectory, improve margins, and strengthen its competitive positioning in the pharmaceutical industry.  AGP Limited has also taken proactive measures to strengthen its operational resilience and financial sustainability. A key initiative has been the diversification of its supplier base, with a strategic shift from imported to locally sourced materials—ensuring continuity of supply without compromising on quality, a hallmark of AGP’s success. As the year draws to a close, AGP has implemented structural changes to optimize its portfolio, including the realignment of teams and the strategic placement of products within focused business units. These measures are designed to maximize the benefits of recent acquisitions and unlock synergies across the organization. AGP is also sharpening its focus on building a robust export base, supported by efforts to optimize inventory, drive operational excellence, and enhance cost efficiencies. To accelerate this agenda, a seasoned senior management professional with extensive international business experience has recently joined the Company to lead the exploration and expansion of export opportunities.  Importantly, dollar-based earnings are expected to serve as a natural hedge against foreign exchange volatility. Remaining agile in a dynamic business environment, AGP continues to monitor external developments, assessing risks and identifying growth opportunities to ensure business continuity. The recent de-regularization of prices for non-essential drugs has provided much-needed relief to the pharmaceutical sector, helping mitigate the rising cost of doing business, especially in light of the Pakistani Rupee's depreciation over the past three years. Additionally, supportive regulatory frameworks and evolving business policies are expected to further strengthen the sector's ability to navigate economic headwinds. The Company also underwired its presence in Kenya, Sri Lanka, and Cambodia through strategic partnerships, facilitating successful product registrations and market launches. Meanwhile, Afghanistan remained a key strategic market, demonstrating consistent sales growth throughout the year. This geographic expansion not only enhances access to quality healthcare in emerging markets but also contributes to the diversification of AGP’s revenue streams, reinforcing the Company’s commitment to sustainable, long-term growth. These initiatives are in line with AGP’s vision of becoming a globally recognized pharmaceutical Company, delivering value through innovation, accessibility, and regional relevance.

At IHCY25, AGP’s net cash conversion cycle extended to ~69 days, compared to around ~60 days recorded in CY24. This increase reflects a slightly longer duration between the outflow of cash for production and the inflow of cash from customer payments. Breaking this down further, inventory days stood at ~60 days, while receivable days were around ~30 days during the period. A significant factor influencing the inventory holding period is AGP’s distribution arrangement with Muller & Phipps (M&P). Under this arrangement, M&P maintains an average inventory of about ~58 days in its own warehouses before the products are dispatched to retail outlets. Once the goods are dispatched by M&P, payments to AGP are typically received within ~30 days. This means that while AGP does not directly hold the inventory, the cash is effectively tied up for a longer duration due to the distributor’s warehousing cycle. Consequently, this operational structure contributes to the overall lengthening of AGP’s cash cycle.

AGP’s Free Cash Flow from Operations (FCFO) amounted to PKR 3,218mln in IHCY25, compared to PKR 6,603mln in CY24 and PKR 3,467mln in CY23.This reflects a healthy operational cash flow generation in just half the year, indicating continued efficiency in the Company’s core business activities. The Company’s interest coverage ratio—which measures the ability to meet interest obligations from operating earnings—also strengthened during the period. It stood at ~4.4 times in IHCY25, a notable improvement from ~2.5 times in CY24. This improvement indicates that AGP is in a stronger position to comfortably service its interest payments. However, the debt servicing ratio, which measures the Company's ability to cover total debt obligations (including principal repayments), slightly declined to around ~1.8 times in IHCY25 from ~2.5 times in CY24.

At IHCY25, the debt on AGP’s balance sheet is primarily composed of three key components. The Company has long-term borrowings amounting to PKR ~258mln, while short-term borrowings stand at PKR 2,080mln. In addition, AGP has issued Sukuk—a form of Shariah-compliant Islamic bonds—worth PKR 8,915mln. The Sukuk constitutes the largest portion of the Company's total debt, indicating a strategic focus on Islamic financing instruments. Despite the sizable debt obligations, the Company’s leverage ratio remained relatively stable during the period. As of IHCY25, the leverage ratio stood at ~43%, showing a slight increase from ~42.8% in CY24 and a notable improvement from ~50.2% in CY23. This reflects prudent financial management and indicates that the Company has maintained a balanced approach to capital structure and debt utilization. Moreover, AGP continues to maintain a strong equity position. The Company reported a total equity base of PKR 15,036mln at the end of IHCY25. This solid capital foundation enhances AGP’s financial resilience and positions the Company well for sustaining operations, meeting financial obligations, and supporting future growth initiatives.