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The Pakistan Credit Rating Agency Limited
Press Release

Date
30-Dec-21

Analyst
Raniya Tanawar
raniya.tanawar@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of Getz Pharma (Pvt.) Limited

Rating Type Entity
Current
(30-Dec-21)
Previous
(30-Dec-20)
Action Maintain Maintain
Long Term AA- AA-
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

Getz Pharma (herein referred as “Getz" or the "Company") is the largest pharmaceutical company of Pakistan, by market share and sales revenues. The Company achieved number one position in the month of October 2021 as reported by IQVIA, the global pharmaceutical data provider. The entity holds a forte in generic medicines with strong concentration in chronic disease treatments, which has been witnessing a high rate of increased demand over the past few years. Moreover, outbreaks of widespread pandemic have directed more focus towards healthcare and hygiene. Henceforth, the demand outlook continues to remain robust. This has enabled the industry players, including Getz, to enhance their revenue base significantly. CPI-linked pricing criteria has allowed an increase in prices with respect to inflation and indicated a positive sign for the sector as well. The strength of Getz is based on the product suite that it markets in the local and exports markets. The hallmark of the Company is the accreditations that it has obtained from World Health Organization (WHO), Geneva, and being the only Company in Pakistan that is certified by the European based Pharmaceutical Inspection Cooperation Scheme (PICs). The Company’s new manufacturing facility, named Astola, has been awarded the First LEED Platinum Certification for a pharmaceutical plant in South Asia, by the U.S. Green Building Council (USGBC). The Company has the research base and production facilities in Pakistan; through which it feeds more than thirty countries around the globe. Financial profile of the Company remained progressive, unaffected during Covid-19 outbreak. With an adequate product concentration, the revenues are dominated by local market and the export window is diverse. The profitability margins are strong with the history of dividend pay-outs. Lately, the debt book witnessed rise, however, when compared to equity and cashflows it remains well managed. The leveraging of the Company is related to expansion project, which has been largely funded hitherto with internally generated equity. The expansion is completed and production has begun. The existing operations remain capable of servicing the debt. This project is being envisaged as a giant leap for the Company.
The ratings are dependent on the continued sustainability of financial performance indicators. Adequacy of cash flows and the availability of resources to make debt-related payments remains critical. Meanwhile, compliance with internally-defined leveraging metrics is a prerequisite. Sanguine governance practices are essential.

About the Entity
Getz Pharma is a Private Limited pharmaceutical company; the operations of entity have been in Pakistan since 1995. It is a wholly-owned subsidiary of Development Holding Asia Limited (DHAL). The two-member BoD (nominee of DHAL) comprises experienced professionals. Mr. Khalid Mehmood, Chief Executive & Managing Director since the inception Company has over 34 years of experience in the pharmaceutical and health care industry. Before joining Getz Pharma as its CEO, he worked in progressively responsible positions with major pharmaceutical companies in the US, South America, Far East, and Africa, in technical operations and marketing. He is an MBA in Marketing from Rutgers School of Management, Rutgers University, USA also holds BS (Bachelors of Science) in Industrial Engineering from California State University, USA. He has been the president of the World Wide Fund for Nature (WWF) for 6 years. He is supported by an experienced core management team.

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.