PACRA Maintains the Entity Ratings of Medipak Limited with Positive Outlook

Medipak Limited (hereafter ‘Medipak’ or ‘the Company’) is a prominent and the only public limited company specializing in life-saving intravenous (IV) infusion therapy solutions, offered in both LDPE (Low-Density Polyethylene) and PP (Polypropylene) packaging. The Company boasts a diverse product portfolio, with a primary focus on IV solutions and administration sets, complemented by ophthalmic preparations, dialysis, and irrigation solutions. The ratings reflect the Company's established position in the domestic IV solutions market, supported by its pioneering status and sole-player position in the manufacturing of double euro-cap IV bottles. Medipak, in collaboration with Fresenius AG, has established operational excellence in the competitive Pakistani IV infusion market, driven by rising healthcare awareness, improved access, an aging population, and chronic disease prevalence. Back in 1982, Medipak contributed to creating self-reliance within infusion therapy in Pakistan by pioneering local manufacturing at the Kot Lakhpat (KLP) plant in Quaid-e-Azam Industrial Estate, which includes a wide range of production facilities. During 2015, the Company carried out CAPEX to develop a second facility in Sundar Industrial Estate, developed with Chinese technology, with exclusive double euro-cap manufacturing. Both facilities are compliant with current Good Manufacturing Practices (cGMP) and are supported by ISO 17025-certified laboratories, along with integrated ISO 9001, 14001, and 45001-certified quality management systems. The local IV solutions market remains competitive, with an installed capacity of ~550 mln units, against which actual production stood at ~300 mln units during 9MFY26, indicating ample spare capacity within a fragmented competitive landscape. Against this backdrop, Medipak strengthened its competitive position, ranking 2nd with its market share increasing to ~13.22% during 9MFY26, from ~12.46% in 9MFY25. During 9MFY26, the Company’s topline grew by ~7.4% year-on-year, reversing the ~6.9% decline recorded in FY25, as disruptions associated with BMR-related plant upgradation progressively subsided and production volumes improved. Gross, operating, and pre-tax margins improved, supported by better cost absorption on the back of the revenue recovery, operational efficiencies, and a reduction in finance costs. The Company’s sponsors have a solid understanding of the business with decades of experience. However, the board consists of close family members and lacks independent oversight, indicating room for improvement. The Company is managed by professional leadership, and an in-house internal control department implements and monitors the policies and procedures of the organization. Medipak continues to invest in BMR and capacity-enhancement initiatives, including the recent installation of new molds, compressors, and solar power capacity, to support production efficiency and long-term sustainability. The financial risk profile has strengthened further, reflected in improved coverage ratios and a continued decline in the leverage ratio, with the capital structure remaining low-leveraged and predominantly short-term in nature.
The ratings remain contingent on the Company’s ability to improve topline and margin trajectory, translate ongoing capacity-enhancement initiatives into demonstrated volumetric and earnings growth, and maintain its strengthened financial risk profile. Continued progress on governance, particularly board independence, alongside prudent financial management consistent with the Company’s budgeted plans, shall remain imperative.

About the Entity
Medipak Limited was founded in Pakistan on January 14th, 1982, as a public limited company. It is a leading Pakistani manufacturer and marketer of life-saving infusion therapy solutions. Established by Dr. Khalid J. Chowdhry, the Company offers a comprehensive range of products, including IV administration sets, dialysis solutions, and various pharmaceuticals. Mr. Naveed K. Chowdhry holds the position of CEO, while Ms. Naureen Khalid is the MD, and Mr. Nasir is the CFO of the Company. Together, they lead a team of qualified and skilled professionals from diverse backgrounds.