PACRA Maintains Entity Ratings of CCL Pharmaceuticals (Pvt.) Limited

CCL Pharmaceuticals (Pvt.) Limited (“CCL” or “the Company”) is a leading name in the pharmaceuticals sector, specializing in the manufacturing and marketing of high-quality branded generic products. With a legacy of over 5 decades, CCL has cemented its reputation both within Pakistan and across international markets, operating in over 20 countries. A key driver of CCL’s success is its portfolio of high-demand and flagship products, including Sita, Pulmonol, Maxflow, Paraxyl, and Jardy. These products are among the top contributors to the Company’s revenue stream. CCL operates state-of-the-art, GMP-compliant manufacturing facilities in Pakistan, including a PIC/s certified facility. CCL is dedicated to creating shared value through its environmental and social initiatives. During FY24 the pharmaceutical sector grew by ~22% YOY and registered a revenue of PKR ~918bln fueled by increasing health demands and a growing population. In the pharmaceutical sector, the top 15 players enjoy a market share of ~61% as per the IQVIA report. Approval for price adjustment by DRAP along with PKR stabilization proved beneficial for the industry as it relies on imported APIs for raw material needs. During the period under review prices for non-essential medicines were deregulated with market forces expected to play their role based on demand and supply. It is expected that the MRP of these non-essential drugs may increase in the short term, however, MRP will stabilize in the medium term and may gradually reduce in the long term due to increased competition. CCL is governed by a strong corporate governance structure, reflected in its board and management-level committees. As part of its long-term vision, CCL has adopted a formal group structure, now operating under the umbrella of ‘CCL Holding Pakistan. The Company is led by Mr. Ali Masood, CEO, a seasoned international business leader with over 20 years of leadership experience of leading pharmaceutical companies. During FY24 revenue of the company recorded a growth of ~32.4% primarily due to price inflation, volumetric growth and margins improvement. The assigned ratings draw comfort from the constant demand for CCL’s products and its market share in Anti-Diabetic, Anti Depressants & Expectorants, and its improved IQVIA ranking to 14th from 16th as of June 24 on a YTD basis. The Company’s financial risk profile is supported by adequate coverage ratios, stable cashflows, and a manageable working capital cycle. Capital structure is leveraged, with a mix of long-term and short-term borrowings. Looking ahead, CCL aims to further increase its market share by leveraging both organic and inorganic growth opportunities. This expansion will be driven by its growing presence in international markets, reinforced by its PIC/S certified facility.
The ratings hinge on sustaining profitability and improvement in market share while maintaining robust cashflows and coverages. Nevertheless, adherence to maintaining its debt metrics at an acceptable level is a prerequisite.

About the Entity
CCL Pharmaceuticals (Pvt.) Limited was incorporated on April 28, 1985, under the Companies Ordinance, 1984 (Now Companies Act, 2017) as a private limited concern. It is involved in the manufacturing, importing, marketing, and sale of a wide range of medicines and allied products. At present, the sponsoring family is 3rd generation and owns the complete stake of the Company through CCL Holding – a subsidiary of the parent entity Dilsons (Pvt.) Limited. Shareholding is divided equally among the family members of the sponsoring family. Mr. Kashif Sajjad is the Chairman and Mr. Ali Masood is the Chief Executive Officer of CCL.