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

Getz Pharma (Private) Limited (‘Getz Pharma’ or ‘the Company’), established in 1995, is Pakistan's largest pharmaceutical company. Ranked number one by IQVIA for the last 15 quarters, it specializes in the formulation, development, manufacturing, testing, and marketing of a broad range of medicines. With a strong focus on innovation and quality, the Company has built a reputation for excellence, both in Pakistan and internationally. In 2013, Getz Pharma became the first Pakistani company to have its Quality Control laboratory pre-qualified by WHO-Geneva, followed by the prequalification of its manufacturing facility by WHO and PIC/s. These accreditations expanded its international reach, solidifying its presence in over ten countries. Now, Getz Pharma operates in over 40 countries, producing over 300 products in areas such as cardiometabolic, gastroenterology, anti-infectives, and urology. Getz Pharma has a strong R&D department that designs and develops therapeutically equivalent drugs, ensuring rigorous standards of bioequivalence and pharmaceutical equivalence. Over the years, the Company has made significant investments in local production including the establishment of Pakistan's first insulin manufacturing facility in 2006, further strengthening the Company's portfolio. In 2022, Getz Pharma opened the Astola manufacturing facility, which is the largest pharmaceutical manufacturing investment in Pakistan to date and is the only LEED Platinum-certified facility in South Asia, recognized by the US Green Building Council for its commitment to energy efficiency and sustainability. The Company’s manufacturing operations are a blend of advanced technologies and world-class infrastructure, enabling the Company to maintain high standards of production while expanding its capacity. The pharmaceutical industry faced challenges like hyperinflation, PKR devaluation, elevated borrowing costs, and limited ability to transfer costs to consumers, constraining profitability. However, in 1HFY25, improved macroeconomic conditions and a significant reduction in the policy rate are expected to bolster profitability and stimulate growth. Deregulation of Non-Essential Medicines (NEMs) pricing, a segment where the company has a sizeable portfolio, is anticipated to further strengthen profitability. In FY24, the pharmaceutical sector experienced ~22% YoY growth, recording revenue of ~PKR 916 billion, with the top 10 players holding ~49% market share. During 9MCY24, Getz Pharma achieved a ~29% revenue growth (CY23: 31%), with exports contributing ~30% of total revenue, providing a natural hedge against adverse currency fluctuations. The Company has sustained healthy profitability margins. Looking ahead, Getz Pharma aims to leverage synergies from its international operations. The company's financial risk profile remains robust, supported by strong cash flows, comfortable coverage ratios, and an efficient working capital cycle. The capital structure is leveraged, with both long- and short-term borrowings strategically allocated to drive growth.
The ratings are dependent on the sustainability of financial performance indicators. Adequacy of cash flows, and sustainability of coverages remain critical. Meanwhile, compliance with internally-defined leveraging metrics is a prerequisite. Sanguine governance practices are essential.

About the Entity
Getz Pharma is a subsidiary of Development Holdings Asia Limited (DHAL), Bahamas. DHAL is jointly owned by DHAL-BVI (owned by Mr. Raymond Simkins' family) and Scitech International (owned by Mr. Khalid Mahmood's family). Mr. Khalid Mahmood, the CEO, has over 43 years of experience in the pharmaceutical industry, while Mr. Raymond Simkins has nearly 50 years of experience in international distribution.