Hoora Pharma (Private) Limited is a private limited company incorporated in Pakistan on 6 September 2010 under the Companies Act, 2017. The registered office of the Company is situated at Floor No 3, Plot No. FD-49,50,51 A8 & A10 Korangi Creek Industrial Park, Korangi Creek, Karachi,  in the province of Sindh. The Company forms part of the diversified Hoora Group of Companies, which also comprises Hoora Pharma, an association of persons under which a portion of the Company's business has historically been conducted, and Pinnacle Biotech (Private) Limited. Pinnacle Biotech (Private) Limited is engaged in the manufacturing and marketing of branded generics across therapeutic categories including cardiovascular, diabetes, and antibiotics. The gradual transition of business from Hoora Pharma, the association of persons, to Hoora Pharma (Private) Limited is currently underway and is expected to be completed soon, representing a structural consolidation of operations within the corporate entity.

Hoora Pharma (Private) Limited traces its origins to 1985, when it was established as a small-scale partnership firm. Over the subsequent decades, the business evolved from its original scope into a reputable name in diagnostic and imaging services, gradually building a position as an intermediary between international medical device manufacturers and healthcare providers in Pakistan. The Company's product portfolio includes testing systems for blood, along with imaging equipment such as CT scans and MRI machines.  The Company's growth has been organic in nature, built around the progressive addition of authorized distribution partnerships with global technology manufacturers rather than through acquisition. The founding sponsor's earlier professional tenure in the healthcare industry, including an extended engagement at another established pharmaceutical enterprise, provided the initial sector grounding from which the partnership firm was built and subsequently formalized into the current corporate structure.

The Company's operations are centered on the sourcing and supply of advanced diagnostic equipment and medical devices from global technology manufacturers. The Company follows a hybrid business model comprising direct equipment sales, long-term rental agreements, and service-based contracts with public and private hospitals as well as diagnostic laboratories, with each business line run independently by a professional management structure and supported by strong marketing and professional sales teams Hoora Pharma (Private) Limited represents prominent industry players including Siemens Healthineers, Shimadzu, and Terumo, and its product portfolio spans immunoassay, chemistry, ultrasound, haematology, imaging, wound closure, and point of care testing domains. The Company has recently been qualified as an authorized distributor of Johnson and Johnson's wound closure product portfolio, adding further diversity to the revenue stream. To support its operations, the Company maintains a distribution infrastructure that includes temperature-controlled warehousing intended to preserve the quality and integrity of diagnostic products throughout the supply chain. Key institutional customers include the Pir Syed Abdul Qadir Shah Jeelani Institute of Medical Sciences, Dow University of Health Sciences, and Mayo Hospital, reflecting an established presence in the public healthcare procurement space. The Company's authorized, partnerships with recognized manufacturers have positioned it in the top quartile of the domestic healthcare distribution industry, supported by a specialized product portfolio and an established institutional clientele base.

The key owner and ultimate decision maker of Hoora Pharma (Private) Limited is Mr. Abdul Rasheed Chohan, the founder and Chief Executive Officer of the Company, who holds a majority 55% equity stake. The remaining 45% is held by his son, Mr. Zulqurnain Rasheed Chohan, who also serves as a Director. The Company is entirely family owned, with 100% of the equity held by the sponsoring family.

The shareholding structure of the Company has remained stable, with no anticipated changes in ownership in the near term and no history of ownership disputes identified. However, the absence of a documented succession plan and a formal corporate governance framework represents a long-term continuity risk for a family-owned enterprise of this scale. A move toward structured corporatization and well-documented succession planning would further enhance the Company's governance and ownership stability, particularly as the business scales in size following the expansion recorded in the year ended 30 June 2025 and the half-year ended December 2025.

The sponsoring family brings decades of healthcare sector experience to the Company. Mr. Abdul Rasheed Chohan has 40 years of experience in the healthcare industry, including a notable 18-year tenure as Executive Director at another established pharmaceutical enterprise, together with international training across Europe, the United States, and Asia in advanced healthcare technologies. He has also established Pinnacle Biotech (Private) Limited, another pharmaceutical-focused business under the Hoora Group umbrella, demonstrating a track record of extending the sponsor family's presence within the sector. His sons, Mr. Zulqurnain Rasheed Chohan, with 21 years of industry experience, and Mr. Saad Rasheed Chohan, with 16 years of industry experience, are well-educated professionals with strong business acumen; both serve as Directors and have represented the Company at international pharmaceutical and diagnostic forums, reflecting continuity of sector engagement and professional capability across generations of the sponsoring family.

Hoora Pharma (Private) Limited is part of the diversified Hoora Group of Companies, which also includes Pinnacle Biotech (Private) Limited and Hoora Pharma as an association of persons, giving the Group a presence spanning pharmaceuticals and diagnostics. This diversified operating base is described as supporting the Group's overall resilience and providing a platform from which financial support could be extended to Hoora Pharma (Private) Limited when required.

The board of Hoora Pharma (Private) Limited is composed of three directors, comprising Mr. Abdul Rasheed Chohan as Chief Executive Officer, Mr. Zulqurnain Rasheed Chohan as Director, and Mr. Saad Rasheed Chohan as Director. This composition ensures close alignment between ownership and strategic direction and enables agile decision-making. Importantly, the board is assisted by a highly professional management team, led by Dr. Zaffar Hashmi, Managing Director, who leads business planning and operational oversight, with clear delegation to functional managers and heads of department, so that day-to-day execution rests with experienced professionals under structured senior supervision. Dr. Hashmi's professional experience across marketing, compliance, and leadership is being applied directly to mentoring and developing the Company's marketing and sales teams, embedding multinational-standard commercial discipline and compliance practices across the organization. The Company has further strengthened its institutional depth through the recent induction of Mr. Muhammad Umer to lead the diagnostic business; he previously headed a renowned company with foreign affiliations. The formation of formal board committees, a process the Company has initiated, would further strengthen the governance framework by providing designated forums to assist the board in strategic oversight.

The sponsors bring deep industry knowledge and international exposure to the board. Mr. Abdul Rasheed Chohan, Chief Executive Officer, has experience including an 18-year tenure as Executive Director at another established pharmaceutical enterprise, together with international training across Europe, the United States, and Asia in advanced healthcare technologies. Mr. Zulqurnain Rasheed Chohan (21 years of industry experience) and Mr. Saad Rasheed Chohan (16 years of industry experience), both well-educated Directors with strong business acumen, have represented the Company at international pharmaceutical and diagnostic forums. The board's sector expertise is complemented by the professional depth of the senior management team, which brings multinational and independent professional backgrounds into the Company's decision-making; the induction of non-executive or independent directors over time would add a further layer of formal oversight.

Given the concentrated ownership and board composition, alignment between shareholder and management objectives is inherently close, as the sponsoring family occupies both roles. The Company has demonstrated concrete intent to strengthen its governance framework: designated committees to assist the board in strategic oversight are being established, a dedicated internal audit department has been set up to improve controls, the procurement function has been upgraded through the hiring of senior-level professionals, and a Business Controlling department is being instituted to enhance operational efficiency and performance monitoring. Continued development in the direction of documented board meetings, structured minutes, and attendance tracking would further enhance transparency, accountability, and long-term governance effectiveness. The roles of Chairman and Chief Executive Officer are combined, consistent with the family-led leadership model currently in place, and are balanced by the professional management layer overseeing execution.

For the year ended 30 June 2025, the Company's external audit was conducted by A.D. Akhawala and Co., Chartered Accountants, who expressed an unqualified opinion on the financial statements. The audit firm holds a Quality Control Review rating from the Institute of Chartered Accountants of Pakistan, although it is not listed on the State Bank of Pakistan's panel of approved auditors, which may somewhat limit its regulatory recognition from a credit risk standpoint. The newly established internal audit function, reporting to the board and senior management, adds an important layer of independent internal assurance over financial reporting and controls.

Hoora Pharma (Private) Limited maintains a functionally segregated organizational structure spanning key areas including supply chain, sales and marketing, import management, finance, human resources, operations, and business units. Every business is run independently by a professional management structure, with dedicated leadership, strong marketing capabilities, and professional sales teams for each principal line. Each business maintains its own profit and loss account, with individual profitability monitored closely by senior management, and all businesses are independently profitable – a structure that embeds accountability and financial discipline at the business-unit level. Senior level appointments – including a Managing Director, General Manager, Vice President, Head of Diagnostic Business, and Business Unit Heads – support accountability and specialization across these functions. The procurement department has been upgraded through the hiring of professionals at senior level, strengthening sourcing discipline in a business where import management is central. A Business Controlling department is being established to improve operational efficiency and institutionalize performance management. The decision-making model reflects strategic direction at the sponsor and Chief Executive Officer level, with operational delegation extended to a professional cadre of functional managers and department heads for day-to-day execution.

The Company is led by Mr. Abdul Rasheed Chohan, who serves as Chief Executive Officer and brings decades of experience in the healthcare and diagnostic sector. His strategic direction is executed by a highly professional management team led by Dr. Zaffar Hashmi, Managing Director, who brings 35 years of experience leading multinational organizations in Pakistan. Dr. Hashmi anchors the Company's business planning function – encompassing annual planning, target setting, and performance review – and maintains close oversight of operational execution across business lines. Drawing on his professional background in marketing, compliance, and organizational leadership, he actively mentors the Company's marketing and sales teams, institutionalizing structured commercial practices, customer engagement standards, and a compliance-oriented culture consistent with the multinational environments in which he has operated. The second line of management includes Mr. Faisal Akbar as General Manager and Mr. Nizam Zaheer as Vice President, along with heads of key functions such as human resources, finance, supply chain, and imports. The finance function is overseen by CFO Mr. Ather Jamil, a qualified Chartered Accountant with rich experience in the healthcare sector. The Company has recently inducted Mr. Muhammad Umer to lead the diagnostic business; he previously headed a renowned company with foreign affiliations and is additionally responsible for setting up the Business Controlling department to improve operational efficiency. The management team's international exposure and training have contributed to the adoption of global best practices across operations. The depth of this professional management layer meaningfully mitigates key person risk at the sponsor level, and the active executive involvement of the well-educated next generation of the sponsoring family provides further continuity of key manufacturer relationships and strategic direction; formal documentation of succession planning would complete this framework.

Roles and responsibilities within the management structure are clearly defined, supporting efficient execution of business functions. The Company maintains internal controls across procurement, inventory, and logistics, supported by enterprise resource planning automation, and has strengthened this framework through the establishment of a dedicated internal audit department and the ongoing setup of a Business Controlling department. Business planning and performance monitoring are led at the Managing Director level by Dr. Zaffar Hashmi, whose marketing, compliance, and leadership experience is also channeled into the ongoing mentoring and capability development of the marketing and sales teams, supporting consistent execution quality as the Company scales. The formalization of internal committees covering operating expenditure, capital expenditure, and strategy – building on the professional structures now in place – represents the next step in strategic coordination and risk governance.

Hoora Pharma (Private) Limited has deployed Oracle NetSuite, a cloud-based enterprise resource planning platform, which integrates core functions including finance, procurement, order management, manufacturing, supply chain, human resources, and analytics. This system supports real time data visibility, workflow automation, and informed decision making through live dashboards and performance indicators accessible to senior management.

The control environment is supported by the standardization of key processes across procurement, inventory, and finance through the enterprise resource planning system. The Company further benefited from newly established a dedicated internal audit function that reports to the board and to senior management, an upgraded procurement department staffed with senior professionals, and the institution of a Business Controlling department to enhance operational efficiency and management oversight.

Pakistan's pharmaceutical and healthcare products sector holds a notable position within the domestic economy, having crossed the one trillion rupee threshold in retail sales value by the end of calendar year 2025. Sales for the twelve months ending March 2025 reached ~PKR 1.049 trillion, an increase of 20.6% in rupee terms, while actual unit sales grew by 3.63% over the same period, indicating that value growth has been driven mainly by pricing adjustments rather than volume expansion. This pattern reflects the deregulatory pricing policy introduced in 2024, which allowed manufacturers to adjust prices for non- essential medicines in response to production cost increases, and which has continued through 2025 alongside improving industry confidence in regulatory continuity.

Within the broader healthcare products space, the medical devices and diagnostics equipment market, in which Hoora Pharma (Private) Limited operates as a distributor rather than a manufacturer, is estimated at ~700 million USD in 2025, with an expected compound annual growth rate in the range of 12 to 15% over the next five years, driven by healthcare expenditure trends, an expanding private hospital and diagnostic center base, and continued reliance on imported technology given limited local manufacturing capability for advanced diagnostic and imaging equipment. The primary regulator for both pharmaceutical products and medical devices is the Drug Regulatory Authority of Pakistan, which since 2015 has also overseen medical device and in vitro diagnostic product regulation, including conformity assessment, quality management system, classification, and authorized representative requirements for foreign manufacturers. Import tariffs on medical equipment range between zero and 25% depending on product category, with certain categories exempt from sales tax, and letters of credit remain the customary mode of payment for imports, exposing distributors to both tariff policy risk and exchange rate movements on the underlying trade finance.

Demand for medicines and diagnostic products is relatively inelastic given its healthcare linkage, providing a degree of insulation from broader economic cyclicality, although affordability concerns persist given the extent of price led rather than volume led growth in recent periods. Barriers to entry in the authorized distribution segment relate less to capital intensity than to the difficulty of securing and retaining exclusive or semi exclusive representation agreements with recognized original equipment manufacturers, together with the regulatory registration burden imposed by the Drug Regulatory Authority of Pakistan. The principal credit risk factors relevant to this sector include foreign exchange exposure arising from import dependence, reliance on the continuity of manufacturer distribution agreements which are typically non-exclusive and revocable, working capital intensity associated with holding buffer inventory of temperature sensitive and technically specialized equipment, customer concentration toward public sector and institutional healthcare procurement which can carry extended payment cycles, and policy risk associated with periodic changes in drug and medical device pricing regulation.

Hoora Pharma (Private) Limited has secured authorized partnerships with the world's leading manufacturers in the healthcare and diagnostic sectors, several of which span decades of continuous association. These include Siemens Healthineers, the leader in Pakistan's diagnostics business; Shimadzu Corporation, the market leader in X-ray systems; Johnson & Johnson (Ethicon), a leader in surgical care, through a newly secured authorized distribution arrangement for its wound closure product portfolio; Nipro Renal Care; and Terumo. These partnerships allow the Company to offer technologies across immunoassay, chemistry, ultrasound, haematology, imaging, wound closure, renal care, and point of care diagnostic domains, and have positioned the Company in the top quartile of the domestic healthcare distribution industry, supported by a specialized product portfolio and an institutional clientele that includes public sector teaching hospitals and medical institutions. The durability of this positioning rests on the continuity of the Company's authorized representation agreements with its principal manufacturer partners and on the depth of the sponsoring family's institutional relationships built over an extended operating history – relationships that have been sustained across decades and successive generations. As a private, unlisted distributor of diagnostic and medical device equipment rather than a manufacturer of pharmaceutical products, the Company's competitive position is best assessed on these qualitative terms given the differing business models between distribution and manufacturing participants in the sector.

Revenue for Hoora Pharma (Private) Limited should be read against the ongoing transition of business from Hoora Pharma, the association of persons, into the corporate entity, a process expected to complete by CY 2026, which affects the comparability of growth rates across the periods under review. The Company has delivered an exceptional growth trajectory, with revenue nearly doubling in each of the last two financial years. For the year ended 30 June 2025, revenue reached ~PKR 7,203.83 million, as compared to the ~PKR 3,986.41 million recorded in the year ended 30 June 2024, representing growth of ~80.7%, following growth of ~91.1% in the prior year. This trend reflects both the scaling of the Company's authorized distribution business – including the contribution of the Johnson & Johnson wound closure portfolio and the public-private partnership imaging arrangement in Punjab – and the progressive absorption of revenue previously recorded within the associated undertaking. In addition to its local sales, the Company generated Rs. 1.168 billion in revenue through its indenting business, supplying directly to leading hospitals. The resulting Rs. 409 million in indenting commission is reflected as other income in the financial statements. Revenue is concentrated toward institutional and public sector healthcare procurement, with key customers including the Pir Syed Abdul Qadir Shah Jeelani Institute of Medical Sciences, Dow University of Health Sciences, and Mayo Hospital, which reflects the Company's presence in public healthcare procurement but also exposes it to the payment cycle and budgetary characteristics typical of public sector institutional buyers. In the period following the year end, for the six months ended 31 December 2025, the Company's revenue remains in strong growth momentum, indicating that revenue expansion has continued into the current financial year.

Profitability trends across the periods under review reflect the combined influence of the Company's rapidly expanding revenue base, its product and customer mix, and the cost structure associated with importing and distributing diagnostic equipment. Gross margins have moderated over the period, consistent with competitive pricing dynamics within institutional and public sector procurement and the pass-through characteristics of imported product costs. Operating profitability has benefited from improved absorption of fixed operating costs as the revenue base has scaled, partially offsetting the effect of the gross margin trend. Net profitability has remained broadly supported at the operating level, though it has been tempered by the increase in finance costs associated with the Company's expanded borrowing base, discussed further under financial risk. Notably, profitability has remained healthy despite the higher leverage: the Company continued to record positive net income during FY25, which was retained in the business and drove the growth in shareholders' equity, confirming that the expanded debt has funded growth rather than absorbed operating losses. Profitability is also managed at the business-line level: each business maintains its own profit and loss account, individual profitability is monitored closely, and all business lines are independently profitable, providing granular earnings visibility and early identification of margin pressure. As a distributor of imported diagnostic equipment, the Company's cost base carries a foreign currency dimension, and margins remain sensitive to movements in the Pakistan Rupee exchange rate and to the extent to which cost movements can be passed through to institutional customers, particularly those in the public sector where pricing flexibility may be constrained by procurement and tendering processes. The Business Controlling department currently being established is expected to sharpen cost visibility and support margin management as the business scales.

The long-term viability of Hoora Pharma (Private) Limited's competitive positioning rests on the continuity and expansion of its authorized distribution agreements with the world's leading manufacturers – including Siemens Healthineers, Shimadzu Corporation, Nipro Renal Care, and Terumo – several of which have been sustained over decades, and on the recently secured authorized distribution qualification for Johnson & Johnson's wound closure product portfolio, which is now contributing meaningfully to the revenue stream. Management has articulated, and is actively executing, a restructuring of the organization to meet multinational corporate standards – evidenced by the professional management team, independent business unit structures, Business Controlling department, upgraded procurement organization, and internal audit function – positioning the Company as a leading supplier of medical diagnostics and healthcare products in the country. In addition, negotiations are in the final stages to induct further leading multinationals into Hoora's core business, which, once concluded, would broaden the principal portfolio, add new revenue streams, and further reduce reliance on any single manufacturer relationship.

The working capital cycle of Hoora Pharma (Private) Limited lengthened in the year ended 30 June 2025, with the gross working capital cycle extending to 193.79 days from 141.65 days in the year ended 30 June 2024 and 132.67 days in the year ended 30 June 2023. Inventory levels increased over the period to support the Company's rapidly scaling distribution business and its institutional and public sector customer base, which requires a buffer stock of diagnostic equipment, while receivable balances also increased in line with revenue growth. Noteably, the net working capital cycle improved to 99.41 days in the year ended 30 June 2025 from 111.02 days in the year ended 30 June 2024, as supplier financing support, reflected in trade payables, increased broadly in proportion with the growth in inventory and receivables – itself an indicator of the confidence extended to the Company by its principal suppliers. The current ratio stood at a healthy 2.01 times as at 30 June 2025, from 2.6 times a year earlier.

The Company's coverage profile remained adequate during FY25, supported by improved operating cash flow generation despite higher borrowings to fund business expansion. EBITDA coverage stood at 3.8x (FY24: 5.0x), reflecting increased finance costs associated with additional debt. Nevertheless, FCFO coverage remained comfortable at 2.3x (FY24: 4.5x), indicating sufficient internal cash flow generation to service financial obligations. The debt payback period remained manageable at 0.8 years, notwithstanding the increase in outstanding borrowings. Overall, the Company's cash flow generation continues to provide adequate cushion for debt servicing, while maintaining a satisfactory coverage profile.

The capital structure of Hoora Pharma (Private) Limited shifted toward debt financing during the year ended 30 June 2025, in support of the Company's rapid business expansion. Total borrowings rose to PKR 4,381.86 million as at 30 June 2025 from PKR 445.29 million a year earlier, while shareholders' equity grew to PKR 2,415.16 million from PKR 1,688 million over the same period, reflecting retained earnings from net income recorded during the year – a demonstration of the sponsors' commitment to reinvesting profits in the business. As a result, the leverage ratio, measured as total borrowings divided by the sum of total borrowings and shareholders' equity, increased to 64.47% as at 30 June 2025 from 20.9% a year earlier. It is important to note the character of this leverage: borrowings have primarily supported business expansion and the enlarged working capital requirements of a distribution business whose revenue grew ~80.7% during the year – evident in the growth of inventory, receivables, and non-current assets – rather than the covering of operating losses. Profitability remained healthy over the same period, with positive net income retained in the business and free cash flows from operations rising to PKR 828 million in FY25 from PKR 491 million in FY24, underscoring that the debt-funded expansion is being matched by growing internal cash generation. The Company carries modest long-term financing and instead relies on the continued availability and rollover of short-term facilities – consistent with the trade-finance-driven nature of an import distribution business – to support its balance sheet. This composition limits the visibility of a formal debt maturity profile and concentrates refinancing requirements within the short-term financing cycle; the Company's growing equity base, strong cash flow coverages, and short debt payback period provide mitigation.