Pakistan's pharma companies see unprecedented growth, hitting PKR 982 billion mark

Pakistan's pharmaceutical sector has rallied an impressive 194% year-to-date (YTD), significantly surpassing the performance of the benchmark KSE-100 Index, which has gained more than 84%.

After underperforming the market for three consecutive years (CY21-CY23), the sector's remarkable turnaround can be attributed to a hike in drug prices and the partial impact of deregulation of non-essential drug prices. This has led to a sequential improvement in gross margins and earnings, resulting in stellar stock performances.

Among the listed pharmaceutical companies, HALEON has emerged as a top performer, with a staggering 436% gain year-to-date (YTD), followed closely by GLAXO and MACTER, which have rallied 362% and 315%, respectively.

According to industry analysts, the sector's growth trajectory is expected to continue, driven by factors such as cost optimization, stable currency, lower raw material prices, and price hikes. The pharmaceutical sector's profit after taxation has improved significantly, reaching Rs18.2 billion, up 130% year-over-year (YoY) based on trailing four quarters.

Nearing PKR 1 trillion in value

Pakistan's pharmaceutical industry has reached PKR 982 billion in value terms as of October, posting a YoY growth of 22% and a four-year value compound annual growth rate (CAGR) of 19%. The industry has also reported a volumetric growth of 3.5% YoY, with projections indicating a significant improvement in earning prospects during the upcoming quarters.

The recent data shows that the drug and medicine price index has reported a growth of 15% YoY during November, compared to the consumer price index (CPI) of 4.9% during the same period. Industry experts expect this increase to continue, as pharmaceutical companies gradually raise prices, taking into account competition and other related factors.

AGP remains a top pick in the Pakistan pharmaceutical listed space, with a December 2025 target price of PKR 250, driven by its strong growth trajectory, well-established brands, cost optimizations, and industry-leading margins.