Medipak Limited (hereafter ‘Medipak’ or ‘the Company’), incorporated in Pakistan on January 14, 1982, as a public limited company. The Company’s registered office is located at 132/1 Quaid-e-Azam, Industrial Estate, Kot Lakhpat, Lahore.

Medipak was established in 1982 by Dr. Khalid J. Chowdhry & family with the founding philosophy of giving the best to life. The Company made a significant contribution to creating self-reliance within infusion therapy in Pakistan by pioneering the local manufacturing of quality and cost-effective products that have now been time-tested for decades. The Company has transitioned and is led by 2nd-generation family members.

Medipak is principally engaged in the manufacturing of IV infusion therapy life-saving products. It is also involved in manufacturing ophthalmic preparations, solid dosage forms, dialysis & irrigation solutions, and medical devices. The Company’s production facilities were set up through technical collaboration with multiple MNCs, including Fresenius AG (Germany). The Company is ISO 9001, 14001, 45001 & IEC 17025 certified.

Medipak is mainly owned by the sponsoring family, where the majority stake of ~81.23% resides with Dr. Khalid J. Chowdhry, and ~18.40% stake rests with other family members. A minor proportion of 0.37% rests with an individual member. This concentrated ownership structure highlights their strong commitment to long-term value creation and rigorous performance monitoring. However, it also indicates potential biases in decision-making and a limited range of viewpoints.

The current ownership structure appears to be secure, with no imminent anticipation of significant changes in shareholding. The sponsoring family maintains full control, holding an approximately 99.63% stake. However, establishing a clearly defined and streamlined shareholding pattern among family members along with a formal documented succession plan, could further enhance the Company’s stability and governance.

Dr. Khalid J. Chowdhry & family (prime sponsors) have strong business acumen. Medipak has been operating in Pakistan for a number of decades now and has made its presence felt by pioneering the first integrated Infusion Solution and IV Administration Set manufacturing. Moreover, the ‘Chowdhry Family’ has ventured into different sectors of Pakistan.

Medipak Limited, the flagship entity of Medipak Group, maintains a healthy financial profile with substantial access to domestic and international markets. The sponsors’ ability to provide the support is considered good, should the need arise.

The board of Medipak Limited comprises four members, including Mr. Khalid J. Chowdhry (the Chairman), Mr. Nasir J. Chowdhry (Advisor), Mr. Naveed K. Chowdhry (the CEO), and Ms. Naureen Khalid (Non-executive director). Notably, there are no independent directors, leading to a board dominated by the sponsoring family. This raises concerns about the lack of independent oversight and challenges to management, which could impede effective governance. However, all the directors have been associated with the board for many decades now and a few holds related DTP trainings.

The business is led by three highly experienced individuals with a combined professional expertise of 61+ years. Mr. Muhammad Khalid J. Chowdhry, the Chairman, is the driving force behind Medipak’s success, known for his visionary leadership and service on the boards of several companies. Mr. Nasir J. Chowdhry brings over 51 years of professional experience and holds directorships in other group companies. Mr. Naveed Khalid, the CEO, also possesses extensive expertise in the industry, playing a key role in steering the company forward.

The board has created two sub-committees: i) Audit Committee and ii) Human Resource Committee to ensure effective governance. Board meetings of the Company are held quarterly in compliance with the principles of corporate governance, and all meeting minutes are documented properly.

M/s BDO Ebrahim & Co. are the external auditors of the Company. The auditors have expressed an unqualified audit opinion on the Company’s financial statements for June, 2025. The auditor is listed in Category “A” of the SBP’s panel of auditors.

A well-defined organizational structure exists in the Company. The functions reporting to the CEO and MD are as follows: 1) Finance, 2) Marketing & Sales, 3) Administration, 4) IT, 5) Technical Services, 6) HRM, 7) Quality Assurance & Regulatory Affairs, 8) Plant Operations, 9) Material Management, and 10) Business Development. Each department is headed by an experienced professional.

Mr. Naveed K. Chowdhry (CEO) is equipped with a profound understanding of the IV industry and carries a wealth of experience of over 2 decades. He completed undergraduate studies at Cornell University (BA Econ’98) and holds graduate degrees from LUMS (MBA’01) and the London School of Economics & Political Sciences (MSc Fin & Eco ’02). He has been supported in the business by a weathered MD (family member), Ms. Naureen Khalid, having experience of leading multiple domains such as operations, marketing, business development, and finance for over 3 decades. She has graduated from LUMS (MBA’92) and further executive education from Harvard Business School (Owner/President Management Program’15). The CFO, Mr. Nasir, is a Fellow Chartered Accountant, contributing over 21 years of relevant expertise and a diverse skill set. This leadership is further assisted by a team of experienced professionals, ensuring good governance and strategic direction.

With the support of an experienced team of professionals, Medipak is building up its business strengths and increasing its footprint. The functions of the management are clear and well-defined to effectively achieve its underlying goals and objectives. Further, six management committees are in place to ensure control at all levels.

Business management operations at the Company are streamlined through SAP ERP solutions. The Company is presently using SAP B1. It has multiple operational modules to keep track of daily and monthly reports required by the management.

To ensure operational efficiency and appraisal of internal controls, the Company has an in-house internal control department that implements and monitors the policies and procedures of the Company.

Pakistan’s pharmaceutical industry has exhibited sustained structural expansion, with the total market reaching PKR 1,182.6 billion on a MAT basis as of January 2026, reflecting robust growth of 15.2% and a 5-year MAT CAGR of 17.2%. This consistent double-digit trajectory underscores the sector’s resilience relative to the broader economy and is fundamentally anchored in strong, non-cyclical demand drivers. Pakistan’s population of over 230 million, growing at ~2% annually, provides a steadily expanding consumption base; however, the more critical driver is the country’s elevated disease burden. The exceptionally high prevalence of non-communicable diseases (NCDs), with diabetes affecting 30.8% of the adult population, alongside widespread cardiovascular and renal conditions, and the world’s largest hepatitis B and C patient pool, creates structurally recurring demand for pharmaceutical products, rendering the sector relatively insensitive to economic cycles. Complementing these demand fundamentals, regulatory developments, most notably DRAP’s phased deregulation of non-essential medicine prices since CY22, have enabled partial pass-through of accumulated cost inflation, supporting revenue growth in value terms. As a result, overall market expansion reflects a combination of steady volume growth (~5–7%) and price-driven gains (~8–10%). Additional tailwinds, including rising generic penetration, favorable import substitution economics, expanding healthcare infrastructure in Tier-2 cities, and improving health awareness, further reinforce this growth momentum. Given the low per capita pharmaceutical spend of USD 20–25 relative to USD 60+ in comparable markets, the industry remains underpenetrated, supporting a sustained above-GDP growth outlook.

Within this broader landscape, the demand dynamics of Intravenous (IV) Solutions segment differ meaningfully from the retail/OTC-oriented bulk of the sector. IV solutions, comprising saline, dextrose, electrolyte, and parenteral nutrition formulations, are predominantly consumed within hospital and critical-care settings, where demand is driven less by retail pricing dynamics and more by surgical volumes, ICU/HDU admissions, and the management of acute and chronic conditions requiring fluid resuscitation, electrolyte correction, or nutritional support. This positions segment demand as comparatively volume-led and need-based rather than discretionary, affording a degree of insulation from the price-sensitive dynamics that characterize much of the broader retail pharmaceutical market, even as reliance on hospital procurement (both public-sector tenders and private hospital purchasing) introduces its own payment-cycle and competitive-bidding considerations. Rising chronic disease prevalence, alongside the country’s still-expanding tertiary-care infrastructure, hospital bed density remains low, at ~0.6-0.7 beds per 1,000 population, against ~1.6 in India and ~3.9 in Sri Lanka, continues to support medium-term volume growth, even as low health insurance penetration and constrained public-sector procurement budgets temper the pace of expansion. Competition within the segment remains concentrated among a small number of established local manufacturers possessing the requisite sterile manufacturing infrastructure and regulatory certifications, given the high capital intensity and stringent quality requirements that constitute meaningful barriers to entry, a dynamic that has historically supported stable market shares among incumbent players, including Medipak.

Furthermore, the IV Administration Sets, ophthalmic preparations (eye drops), irrigation solutions, and dialysis solutions each occupy a distinct niche within the broader healthcare ecosystem. IV Sets represent the most directly complementary of these lines, given their near one-to-one consumption linkage with IV solution volumes; as disposable, single-use devices required for every infusion administered, demand for sets tracks closely with IV solutions business and broader hospital infusion volumes. Ophthalmic preparations, by contrast, serve a structurally different, predominantly retail and outpatient-driven market, with demand influenced by the rising prevalence of age-related and diabetes-linked ocular conditions amid an aging and increasingly diabetic population. This segment is more fragmented and price-competitive than the hospital-procured IV solutions business, with numerous local and multinational players active across prescription and OTC formulations.

Irrigation solutions, used predominantly in surgical, wound-care, and urological procedures, are tied closely to hospital surgical volumes and, like IV solutions, benefit from the country’s gradually expanding tertiary-care infrastructure; while manufactured using broadly similar sterile-fluid processes as IV solutions. Dialysis solutions, meanwhile, represent the ancillary line with the most distinct long-term growth narrative, underpinned by Pakistan’s substantial and rising burden of chronic kidney disease, estimated to affect ~12-13% of the adult population, with diabetic nephropathy a leading contributor given the country’s high diabetes prevalence. Critically, only a small fraction of patients requiring renal replacement therapy currently receive it, reflecting capacity constraints across the country’s dialysis care infrastructure, a gap that, as awareness and access improve over time, could support accelerating demand for dialysis solutions and related consumables, with growth contingent on broader healthcare system capacity expansion.

Overall, the prevailing industry dynamics provide a balanced operating environment for Medipak, where favorable structural demand drivers are counterbalanced by continued input cost pressures and regulatory uncertainties. The deregulated pricing environment, improving export orientation, and structurally rising healthcare demand, driven by an increasing disease burden, support the Company’s medium-term revenue and profitability prospects across both its core IV solutions business and ancillary product portfolio. Conversely, continued PKR volatility, dependence on imported APIs and raw materials, and uncertainty surrounding the regulatory framework for essential-medicine pricing remain key industry risks that could weigh on cost structures and earnings stability.

Within this landscape, Medipak benefits from its established position in the IV solutions segment, which remains the Company’s principal revenue and earnings contributor. Its scale, manufacturing capabilities, and long-standing market presence provide a competitive advantage relative to the fragmented domestic IV solutions market. Meanwhile, its ancillary product lines offer incremental diversification, with dialysis solutions representing a promising long-term growth avenue as the prevalence of chronic kidney disease rises and Pakistan’s healthcare infrastructure continues to evolve.  

According to the management, the domestic IV solutions industry comprises numerous active and inactive manufacturers with an installed production capacity of ~550 million units, while actual production stood at around 300 million units during 9MFY26, indicating ample spare capacity and a fragmented competitive landscape. Against this backdrop, Medipak strengthened its competitive position and ranks at 2nd, with its market share increasing to ~13.22% during 9MFY26, from 12.46% in 9MFY25, a gain achieved despite the prevailing industry overcapacity and pricing competition. This improvement in market share, taken together with the revenue recovery and margin gains discussed below, points to a broadening of Medipak’s competitive footing within the IV solutions segment, rather than a narrowly-based or one-off gain.

During 9MFY26, the Company’s sales grew by ~7.4% on a year-on-year basis, reversing the ~6.9% decline recorded in FY25 (FY24: growth of ~15.3%), as disruptions associated with the BMR-related plant upgradation progressively subsided and production volumes normalized. The return to positive growth, followed by installation of new molds and compressors, is an encouraging development. The revenue mix continues to be dominated by local sales, contributing ~94% of total revenue, while exports accounted for the remaining ~6%, reflecting the Company’s predominantly domestic demand base and a comparatively limited, though structurally intact, export orientation.

The Company’s profitability metrics have improved consistently across successive periods. Gross margin increased to ~29.5% in 9MFY26, from ~28.0% in FY25 and ~24.8% in FY24, reflecting improved cost absorption on the back of the revenue recovery, together with sustained operational efficiencies. This improvement carried through to the operating level, with the operating margin rising to ~9.4% in 9MFY26 (FY25: ~7.9%, FY24: ~8.1%), notwithstanding continued cost pressures stemming from imported input prices and PKR volatility. The profit before tax margin similarly strengthened to ~6.4% in 9MFY26, compared to ~4.3% in FY25 and ~3.5% in FY24, aided further by a reduction in finance cost during the period. The broad-based nature of this improvement, spanning the gross, operating, and pre-tax levels, lends support to the view that the Company’s profitability gains reflect an improving underlying cost and capital structure, rather than a transient or narrowly-based uptick. During the current review period, the Company has installed solar power of ~0.8 MW which will further reduce the cost and improve margins.

Despite the presence of numerous registered companies and intense competition in Pakistan’s IV solutions market, Medipak has sustained it’s one of the leading and a pioneering position in the manufacturing of Infusion Solutions and IV Administration Sets, underpinned by its long operating history, established regulatory certifications, and scale advantages that are not easily replicated by smaller competitors. The Company’s ongoing BMR (Balancing, Modernization & Replacement) investments and expansion plans, are directed at enhancing production efficiency and capacity, and are expected to support the Company’s ability to meet evolving demand across its core and ancillary product lines over the medium term. Continued and timely execution of these capex plans, alongside prudent working capital and financing management, will remain important considerations in assessing the sustainability of the Company’s recent operating and financial improvement.

Medipak’s working capital needs emanate from the financing of inventories and trade receivables, funded through a combination of internal cash flow generation and short-term borrowings. During 9MFY26, gross working capital days remained broadly stable at ~129 days (FY25: ~130 days, FY24: ~125 days, FY23: ~123 days), while the net working capital cycle extended to ~116 days (FY25: ~113 days, FY24: ~110 days, FY23: ~105 days), continuing a gradual lengthening trend observed over the past few years. This trend, if it persists, could exert incremental pressure on short-term liquidity and reliance on working-capital financing. It is notable, however, that this lengthening has not translated into higher leverage, the Company’s leverage ratio has instead continued to decline over the same period, indicating that the incremental working capital requirement has largely been absorbed through internally generated cash flows rather than additional borrowing. This dynamic will remain an area of monitoring, particularly to ensure that working capital efficiency does not weaken further as the Company’s scale increases.

Medipak’s coverage indicators have strengthened markedly, with the interest coverage ratio improving to 3.9x in 9MFY26 (FY25: 2.5x, FY24: 2.2x, FY23: 3.5x), surpassing not only the recent trough but also the level recorded in FY23, suggesting that the improvement in debt-servicing capacity extends beyond a cyclical recovery. The core debt coverage ratio similarly strengthened to 2.6x in 9MFY26, from 1.2x in FY25 and 1.8x in both FY24 and FY23, representing the improved level across the four-year period under review. These improvements reflect the combined benefit of the Company’s lower finance cost and adequate operating cash flow generation on the back of the topline and margin recovery.

During 9MFY26, Medipak maintained a low-leveraged capital structure, with the leverage ratio declining further to ~16.3% (FY25: ~17.4%, FY24: ~20.7%, FY23: ~21.7%). The gradual decline in leverage reflects strengthening internal capital generation through improved profitability and retained earnings, enabling the Company to support business growth. This trend underscores Medipak’s prudent financial policy and provides additional financial flexibility to absorb working capital requirements and future investment needs. The debt profile remains predominantly short-term in nature, with short-term borrowings accounting for ~76.9% of total debt. This borrowing mix is consistent with the Company’s operating cycle, as financing requirements are largely driven by inventory procurement and receivable funding. Long-term borrowings continue to represent a relatively modest portion of the capital structure, limiting refinancing and interest rate risks while preserving balance sheet flexibility.

Going forward, the Company’s ability to sustain its leverage profile amid business expansion will remain an important rating consideration. Any increase in borrowings to support working capital or capital expenditure is expected to be accompanied by commensurate improvements in profitability, operating cash flows, and capitalization metrics, thereby maintaining the overall strength of the Company’s financial risk profile.