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Lahore, July 21, 2023 (PPI-OT): Medipak Limited (‘Medipak’ or ‘the Company’) is a public limited concern specializing in the manufacturing and marketing of IV infusion therapy life-saving solutions sets. The ratings reflect Medipak’s long-established position in the local integrated IV Infusion and IV Administration Set markets. The Company was set up through a technical collaboration with Fresenius AG, Germany (a leading name in the global IV infusion and medical devices market).
The IV infusions market in Pakistan is characterized by the presence of both MNCs and local manufacturers. The demand for IV solutions has been steadily increasing due to the need for effective and efficient drug delivery methods. IV infusion therapy is a well-established medical practice and is widely utilized in hospitals (primarily institutional demand). Back in 1982, Medipak made a contribution to creating self-reliance within infusion therapy in Pakistan by pioneering local manufacturing at the Kot Lakhpat (KLP) plant in Quaid-e-Azam Industrial Estate, with an area of 4.53 acres with a constructed area of 118,000 sq. ft. which includes a wide range of production facilities. During 2015, the Company carried out CAPEX to develop a second facility in Sundar Industrial Estate, built on 2 acres of land with a constructed area of ~100,000 sq. ft. (both facilities are cGMP-compliant).
Medipak holds a nationwide marketing channel with over 200 distributors and 150 sales professionals. In the I.V. Infusions segment, the Company faces competition from both domestic and international players. As per management’s representation, it holds ~20% share in the local IV market. In 9MFY23, it registered cumulative sales growth of ~32.2% (FY22: ~25.2%). The Company’s sales function is a mix of more volume and better prices. Generally, pharmaceutical companies in Pakistan are highly dependent on imports to meet the demand for basic raw materials. The financial risk profile is demonstrated by good working capital management, improved coverages, and comfortable cash flows. Its capital structure is low-leveraged, mainly encompassing STBs.
The ratings are dependent on the sustenance of the Company’s position in its respective business niches and the consistently changing business environment. With revenue growth, profit margins, and prudent financial performance shall remain imperative.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
The post PACRA Assigns Initial Entity Ratings to Medipak Limited appeared first on Pakistan Business News.