Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has upheld the ratings for Ferozsons Laboratories Limited, highlighting the company's stability in the expanding pharmaceutical sector. Ferozsons, engaged in manufacturing and selling pharmaceutical products as well as importing medical devices, has demonstrated robust growth in both acute and chronic care segments, reflecting its strategic focus on diversified healthcare solutions.
According to PACRA, Ferozsons operates across more than 100 brands in specialized therapeutic areas such as gastroenterology, cardiology, and pediatrics, with a cGMP-compliant manufacturing facility ensuring high-quality standards. The company has established international partnerships with firms like Gilead Sciences Inc., Boston Scientific, and Nihon Kohden, which have expanded its revenue sources beyond core medicines. Its strategic investment in BF Biosciences Limited further positions it in the biotech arena.
The pharmaceutical sector in Pakistan is exhibiting strong growth, with a Moving Annual Total (MAT) industry growth of 15.2%, expected to reach a valuation of PKR 1.2 trillion by January 2026. This growth is driven by increasing population, rising chronic diseases, and enhanced healthcare access. While local manufacturers are gaining market share, the sector remains competitive with a reliance on imported APIs and exposure to currency volatility.
In the first half of FY26, Ferozsons reported consolidated sales of PKR 12,622 million, driven by a 33.9% annualized growth rate in the generic drug segment. The company's standalone topline increased by 18% compared to the previous year, with a bottom-line of PKR 354 million. The financial risk profile of Ferozsons is marked by strong cash flow generation, although it faces challenges with a stretched working capital cycle.
The sustained ratings are contingent upon continued growth in topline and profitability, along with improvements in cash flow adequacy and working capital management. The company's alignment with financial projections will be crucial for maintaining ratings in the future.