The Pakistan Credit Rating Agency Limited
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Muhammad Harris Ghaffar

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PACRA Maintains Entity Ratings of Martin Dow Marker Limited

Rating Type Entity
(03-Jun-22 )
(04-Jun-21 )
Action Maintain Initial
Long Term A+ A+
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

Martin Dow Marker Limited (herein referred as "MDM" or the "Company") formerly known as Merck (Pvt.) Ltd, is a notable name in pharmaceutical segment of Pakistan operating since 1951. The Company operates under the umbrella of Martin Dow Group, one of the largest locally owned pharmaceutical companies, comprises three other companies and constitutes well-known brands under its domain: Rocephin, Concor, Evion & Glucophage and etc. The group is known for its high-end acquisitions and investments, denoting good financial strength. According to the IQVIA’s (formerly IMS Health) latest report, local pharmaceutical industry size has reached up to PKR 638bln and reflects 26% YOY growth where MDM is classified among top 10 leading pharmaceutical companies. The leadership flows from its distinctive ownership that vest in the hands of two reputable families coming with enriched professional backgrounds; Marker’s & Akhai family, while MDM is mainly governed by the descendant of latter, demonstrating a profound business acumen. The industry is quality conscious driven by defined standards from DRAP. The assigned ratings of the Company take comfort from sustainable demand of product and strong market share in chronic diseases segment. During the year under review the Company has successfully launched new molecules in different Therapeutic Classes. The Company’s association and strategic alliances with renowned multinational groups, predominantly with Merck, Sanofi & P&G, gives it an edge to vie in a competitive environment. From time to time the Company has invested in upgrading its manufacturing facilities as well, bringing-in new technology. Financial risk profile of the Company appears strong with healthy coverages and cashflows, working capital cycle of the Company is stretched which depicts industry norms. The management is mindful of the essence of corporate structure and is keen towards change for the better. This lends support to ratings.
The ratings are dependent on upheld sustainable profits and market share while retaining sufficient cash flows and coverages. However, adherence to maintain its debt metrics at an adequate level is a prerequisite. Improvement in governance structure remains important for the ratings.

About the Entity
Martin Dow Marker Ltd is the subsidiary of Martin Dow Limited. Martin Dow Limited holds 75% shareholding while remaining 25% is held by Marker Family. Martin Dow Limited is owned by the Akhai Family, mainly Ali Akhai – son of late Mr. Jawed Akhai (the founding chairman of Martin Dow Group)
The history of Martin Dow Marker Ltd, formerly Merck (Pvt.) Ltd in Pakistan began in 1951, Merck Pakistan became a part of Martin Dow Group in 2016 and was renamed as Martin Dow Marker Ltd.
Mr Ali Akhai took the position of Chairman after his father, Mr Jawed Akhai passed away in 2018. MDM has a three-member board including the Chairman, Mr Javed Ghulam Muhammad the CEO of the company and Mr Syed Dawood – the independent Director. Mr Dawood is associated with MDM since 2018.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.