Karachi: BF Biosciences Ltd. (BFBL), Pakistan's inaugural biotech pharmaceutical company, is poised for its initial public offering (IPO) with a book-building process scheduled for September 25-26, 2024. The company aims to raise PKR 1.38 billion by offering 25 million ordinary shares, representing 28.3% of its post-IPO holdings, at a floor price of PKR 55 per share.

According to AKD Securities Limited, the proceeds from the IPO are earmarked for purchasing plant and machinery to enhance operational efficiencies and expand the product base. Additional funds will be allocated for working capital to support post-expansion activities and to acquire export-related certifications. BFBL, a subsidiary of Ferozsons Laboratories Ltd., currently holds a significant market presence in antifungal treatments, hepatology, and chronic kidney disease management.

The pharmaceutical sector in Pakistan has seen a positive shift following the deregulation of non-essential drugs and a CPI-based price adjustment authorized by the Drug Regulatory Authority of Pakistan (DRAP) last year. These changes have led to improved gross margins across the industry, with BFBL’s margins increasing to 43% during the first nine months of fiscal year 2024, up from 25% in fiscal year 2023.

The upcoming expansion with Line-II, set to begin operations in September 2024, is expected to substantially increase the company's production capacity. This expansion is strategically timed as the company has been operating at full capacity for the past two years, indicating a robust demand for its offerings.

BFBL is also anticipating significant growth in its top brands, with projections showing substantial revenue increases in key segments. The company remains a dominant player in the hepatology market and is set to expand its reach in the antifungal segment and beyond.