Lahore, June 06, 2022 (PPI-OT):Martin Dow Marker Limited (herein referred as “MDM” or the “Company”) formerly known as Merck (Pvt.) Ltd, is a notable name in pharmaceutical segment of Pakistan operating since 1951. The Company operates under the umbrella of Martin Dow Group, one of the largest locally owned pharmaceutical companies, comprises three other companies and constitutes well-known brands under its domain: Rocephin, Concor, Evion and Glucophage and etc. The group is known for its high-end acquisitions and investments, denoting good financial strength.
According to the IQVIA’s (formerly IMS Health) latest report, local pharmaceutical industry size has reached up to PKR 638bln and reflects 26% YOY growth where MDM is classified among top 10 leading pharmaceutical companies. The leadership flows from its distinctive ownership that vest in the hands of two reputable families coming with enriched professional backgrounds; Marker’s and Akhai family, while MDM is mainly governed by the descendant of latter, demonstrating a profound business acumen. The industry is quality conscious driven by defined standards from DRAP. The assigned ratings of the Company take comfort from sustainable demand of product and strong market share in chronic diseases segment. During the year under review the Company has successfully launched new molecules in different Therapeutic Classes.
The Company’s association and strategic alliances with renowned multinational groups, predominantly with Merck, Sanofi and P and G, gives it an edge to vie in a competitive environment. From time to time the Company has invested in upgrading its manufacturing facilities as well, bringing-in new technology. Financial risk profile of the Company appears strong with healthy coverages and cashflows, working capital cycle of the Company is stretched which depicts industry norms. The management is mindful of the essence of corporate structure and is keen towards change for the better. This lends support to ratings.
The ratings are dependent on upheld sustainable profits and market share while retaining sufficient cash flows and coverages. However, adherence to maintain its debt metrics at an adequate level is a prerequisite. Improvement in governance structure remains important for the ratings.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com