Price-led growth lifts Pakistan pharma profits 28% to Rs42.2 billion in FY26

Listed drugmakers in Pakistan earned Rs42.2 billion in FY26, a 28% rise from a year earlier, according to Topline Pakistan Research as reported by Profit. Higher prices drove most of the growth, with sector sales rising 10% to Rs377.9 billion from Rs342.6 billion in FY25. Gross margins hit a record 42.8% in the year, up from 38.9%, while lower finance costs also helped earnings.

Abbott Laboratories Pakistan held the largest sales share at 20%, ahead of GlaxoSmithKline Pakistan at 18% and The Searle Company at 10%. AGP posted the top gross margin at 60.4%, while Highnoon Laboratories reached 56.1% and Searle 52%. Topline said selling and distribution costs climbed 21% to Rs69.5 billion, while finance costs fell 42% to Rs3.6 billion.

Stock performance lagged the earnings gain, as market capitalisation excluding Liven Pharma rose only 2.3% year on year by June 30, 2026. Quarterly profit fell 2% year on year in the fourth quarter of FY26 because of a loss at Searle, but excluding Searle the quarter's profit rose 6% to Rs9.3 billion. Topline expects volumes to recover in the first half of 2027, citing a low base in 2026 and wider product lines.