PACRA Maintains Entity Ratings of Getz Pharma (Private) Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- December 31, 2020 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

Getz Pharma is the second-largest pharmaceutical company of Pakistan, by market share and sales revenues. The pharmaceutical industry has witnessed a high rate of sustained growth over the years. Cost-efficiencies as well as demand inelasticity are benefiting the industry players. CPI-linked pricing criteria has allowed an increase in prices with respect to inflation and indicated a positive sign for the sector. The strength of Getz Pharma is based on the product suite that it markets in the local market and also in the export.

The hallmark of the company is the accreditation that it has obtained from World Health Organization (WHO), Geneva as well as it is the first and only company in Pakistan that is certified and accredited by the European based Pharmaceutical Inspection Cooperation Scheme (PICs). The company has the research base in Pakistan as well as the production facilities; through which it feeds multiple countries around the globe.

Financial performance of the company remained unaffected during Covid-19 outbreak, rather the demand front gained momentum on account of it, enabling the company to reserve good revenues. With an adequate product concentration, the revenues are dominated by local market and the export window is diverse.

The profitability margins are strong with the history of dividend pay-outs. Lately, the debt...