AGP Limited (AGP) reported consolidated earnings per share of PKR 13.34 for CY25, compared to earnings per share of PKR 9.53 in FY24. Furthermore, in 1QCY26, the company reported earnings per share of PKR 3.06, compared to earnings per share of PKR 3.04 in the same period last year (SPLY)
The company operates three manufacturing facilities in Karachi, comprising a general medicine facility, a dedicated cephalosporin plant, and a nutraceutical manufacturing facility. The portfolio’s leading blockbuster brand is Azomax, contributing approximately PKR 4.8bn in sales, followed by Rigix PKR 4.3bn, Osnate PKR 2.4bn, and Norvasc PKR 2.0bn. AGP has entered into a new strategic alliance with Stada, a German entity, for the Olatum consumer healthcare and skincare portfolio, which includes lotions, washes, and baby soaps. The company has secured marketing rights for Viagra and Xanax from OBS Group, with commercialization commencing this month.
AGP is currently establishing a biotech facility, which is expected to become operational by 4QCY26. The plant will manufacture Semaglutide and Tirzepatide, GLP-1 molecules similar to Ozempic and Mounjaro, along with a range of insulin products. Management disclosed that the total capex for the biotech facility is estimated at PKR 500–600mn, primarily due to the availability of existing land and basic infrastructure. Despite land border closures with Afghanistan, AGP exported approximately PKR 2.5bn worth of products to the country during 2025 through air transportation. In 2026, the company has already achieved sales of PKR 1.2bn to the market.
Management believes the border is likely to reopen eventually, citing the risk of an impending healthcare crisis in Afghanistan. The company is also diversifying geographically by expanding into 31 new international markets across Africa, South America, and Asia to reduce dependence on a single export region. For 2026, management is targeting growth of more than 15%, compared to the industry growth outlook of 12–13%.
Management highlighted that although overall industry volumes were impacted by a shorter winter season and elevated inflation, AGP’s performance remained resilient due to its strategy of prioritizing volumetric growth over massiveprice increases.
Currently, around 85% of APIs are imported, primarily from China. Management explained that local API manufacturing remains a high volume, low margin business, requiring consistent government policy support over a 10–15 year horizon to become commercially viable
The company’s 2025 sales mix comprised 85% trade sales, 6% institutional sales, 9% exports, and 1% toll supply. Institutional sales during 1Q2026 stood at approximately PKR 650mn, representing nearly 9.5% of total sales. Management noted that Afghanistan previously attempted to source medicines from Uzbekistan through land routes; however, the initiative was unsuccessful. On a consolidated basis, approximately 65–70% of AGP’s portfolio comprises non-essential products.
AGP also leverages the broader group’s procurement scale to negotiate better API pricing through bulk purchases. Management highlighted that the elimination of input sales tax remains a key discussion point with the government. Since pharmaceutical companies are unable to charge sales tax on their final products, the input tax effectively becomes a significant cost burden.
Management noted that the taxation framework for exports was recently shifted from a fixed 1% tax regime to the normal tax regime. The company is lobbying for the restoration of the 1% fixed tax structure to support export oriented growth.
Important Disclosures
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