PACRA Maintains the Entity Ratings of BF Biosciences Limited

BF Biosciences Limited (hereafter referred to as “BFBIO” or “the Company”) is Pakistan’s most advanced biotech formulation company and is primarily engaged in the manufacturing, marketing, and distribution of biological and non-biological medicines in both liquid and lyophilized injectable forms. BFBIO distinguishes itself by producing life-saving medicines related to various therapeutic areas, i.e., Hepatology, Chronic Kidney Diseases, Anti-fungal/Oncology, Cardiology, Diabetes/Anti-obesity, Dermatology, Gastroenterology, and Antivirals. The Company operates a state-of-the-art manufacturing facility designed and installed by a leading European firm specializing in the design and installation of Pharmaceutical and Biotech manufacturing facilities, Telstar Projects, in line with the standards of EU, USFDA, and GMP requirements. BFBIO’s product portfolio is further enhanced through its strategic collaboration and partnership with Bago Group, a renowned Argentine multinational conglomerate founded in 1934. Pakistan’s pharmaceutical industry continues to exhibit strong structural growth, supported by non-cyclical demand fundamentals and a rising disease burden, with the market reaching PKR 1,182.6 billion (MAT Jan’26). Despite a fragmented and highly competitive landscape, long-term demand remains underpinned by the increasing prevalence of non-communicable diseases (NCDs), particularly diabetes and oncology, driving a sustained need for chronic and specialty therapies. Within this context, the biopharmaceutical and injectable segment offers relatively stronger growth prospects, supported by high entry barriers and increasing institutional demand. The segment’s expansion is further driven by import substitution, positioning specialized local players to benefit from evolving healthcare needs and procurement dynamics. BFBIO’s product mix is primarily focused on chronic therapies, comprising ~60% biological and ~40% non-biological products. Its leading brands include Icon, Rifaxa, Ferulin, Eritrogen, Vorif, Peg INF, Novapressin, Sematide, Noxane, and Zeptide. During 9MFY26, BFBIO reported revenues of ~PKR 7,236mln, registering a growth of ~71.7% over 9MFY25 (~PKR 4,214mln). This increase is primarily attributable to volume scale-up following the full-scale commercialization and ramp-up of Line-II, materially enhancing the Company’s production capacity and market supply, alongside contributions from new product introductions. In 9MFY26, the Company’s gross margin improved; however, operating and net margins declined. BFBIO’s financial risk profile is characterized by an adequate working capital cycle, cash flow generation, and strong coverage ratios. The capital structure is moderately leveraged, with borrowings primarily consisting of long-term debt to support CAPEX.
The ratings remain dependent on the Company’s ability to sustain growth in topline revenues, strengthen its standalone market share. The adequacy of operating cash flows, effective management of the working capital cycle, and maintenance of comfortable debt service coverage metrics will continue to be closely monitored. Furthermore, steady progress toward SRA certifications and diversification of export markets will be viewed positively.

About the Entity
BF Biosciences Limited (BFBIO) is a publicly listed company operating in Pakistan’s pharmaceutical sector since 2006. The parent company, Ferozsons Laboratories Limited holds ~57.36% and the Bago Group holds a stake of ~14.34% in the Company. The Board of Directors comprises seven members, including four non-executive, two independent (has one casual vacancy after one director resigned which will be filled in due course), and one executive director. Mr. Sebastian Martin Ferrarassi serves as the Chairman, while Mr. Muhammad Farhan Rafiq holds the position of Chief Executive Officer.