Pakistan’s Pharma Sector: Mixed Results in April–June 2025

The April–June 2025 (2QCY25) results are out for Pakistan’s pharmaceutical sector, and the picture is mixed. Some companies delivered strong growth, while others struggled with falling sales.

Why the mixed performance?

Last year, the government deregulated the prices of non-essential medicines. This meant companies could set their own prices instead of sticking to government-controlled ones. The move boosted revenues and profits in recent quarters.

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But in 2QCY25, the impact of deregulation started to level off, and performance varied depending on each company’s product mix, supply situation, and costs.

Winners of the quarter

• Haleon Pakistan (HALEON): Sales up 16% QoQ. Gross margin improved by 660bps YoY and 610bps QoQ.
• Highnoon (HPL): Sales up 15% QoQ. Margins rose 300bps YoY, though slightly lower QoQ due to currency weakness.
• Abbot (ABOT): Sales up 10% QoQ, margins also improved significantly (+1140bps YoY).

These companies benefited from better product availability and new product launches.

Strugglers of the quarter

• AGP: Sales down 22% QoQ.
• Highnoon (HINOON): Sales fell 12% QoQ.
• Glaxo (GLAXO): Sales down 6% QoQ, despite an 11% YoY increase.

The drop in revenues here was due to procurement challenges and logistical disruptions caused by the ongoing Indo-Pak war.

Sector trends

• Revenues: Boosted in the past year by deregulation, but now the big driver will be sales volumes rather than price hikes.
• Margins: Most companies saw margins improve, even where revenues dropped.
• Future Outlook: Companies with strong product pipelines and the ability to introduce new medicines are expected to outperform their peers.

The pharma sector had a mixed quarter: some players grew thanks to better supply and product launches, while others faced disruptions. With price deregulation’s effects now fully baked in, the real test ahead will be who can keep growing sales and expanding product lines.

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Source: Insight Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →