AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The pharmaceutical industry in Pakistan experienced a notable 12% year-over-year increase in net revenue, reaching Rs80 billion in the first quarter of the calendar year 2025, according to a recent analysis by JS Global. The rise is primarily attributed to the deregulation of non-essential drug prices, which has positively impacted the sector’s financial performance.
The analysis, which reviewed a sample of ten listed pharmaceutical companies, revealed a significant improvement in the gross margin, which rose to 39%, an 8 percentage point increase from the previous year. The companies also reported a substantial 78% growth in earnings, driven by higher drug prices, a stable currency, and decreasing prices of active pharmaceutical ingredients (APIs).
However, on a quarter-on-quarter basis, the sample companies experienced a 2% decline in sales, with the gross margin remaining stable. Some companies faced a contraction in margins due to seasonal impacts on the sales mix.
Looking ahead, the report maintains an optimistic outlook for the sector, bolstered by favorable dynamics such as deregulated drug prices, increased drug availability, falling API prices, and the anticipated approval of a price hike for essential drugs. This increase is expected to be linked to 70% of the Consumer Price Index in the second half of 2025, potentially supporting further expansion of the sector’s bottom line.
Despite the sector underperforming the KSE-100 index by 6% this calendar year to date, the report views the current market correction as a buying opportunity, given the sector’s promising prospects.