Lahore, October 20, 2022 (PPI-OT):CCL Pharmaceuticals (Pvt.) Limited (hereinafter referred as ‘CCL’ or ‘the Company’) is primarily engaged in the development, manufacturing, and marketing of branded generic pharmaceuticals products. The ratings reflect Company’s reputable business profile in pharmaceutical industry of Pakistan with legacy built 50+ years and exports in 22+ countries worldwide. With population growth rate and rising health issues, the sector grew by ~12% YoY. Dependency on imported APIs (basic raw material) is significant, thus sustaining efficient supply chain is of utmost priority for local manufacturers.
However, non-reliance on any single country for imported APIs provides mitigation against potential disruptions. The Company’s flagship products include brands like Sita Met, Pulmonol, Maxflow, Paraxyl CR and Orinase Met, contributing the highest in revenues. CCL has installed state-of-the-art GMP compliant manufacturing facility enabling to produce dry powder, liquid orals, solid orals, liquid injectable, and powder injectable. Besides, substantial CapEx is underway to upgrade manufacturing facility aligned with PICs and other international compliances.
It has been accredited as one of the fast-growing pharmaceutical entities among top 25 players in Pakistan following sponsors’ vision to capitalize growth trajectory. The Company is governed by qualified professionals having diversified experience at upper-level hierarchy in MNCs and reputed local pharmaceutical setups. CCL is cognizance of corporate governance structure; reflected by committees formed at board and management level. The oversight role is played by the stockholders in collaboration with independent advisors on the board.
As per the management accounts, CCL recorded revenue growth of ~25% at end June’22 with adequate margins. The ratings draw comfort from constant demand of products and strong market share in Anti-Diabetic, Anti-Depressants and Expectorants. According to IQVIA report, CCL’s ranking improved to 17th on YTD basis. Financial risk profile is demonstrated by efficient working capital management and healthy cash flows. Capital structure is leveraged to support BMR (to align with PICs and other international compliances) and capacity expansions.
The Company benefits from more formal group structure with incorporation of CCL Holdings. Going forward, CCL attempts to (a) ramp up its market share with new molecules and through brand acquisitions (b) explore export destinations after aligning with PICs and other international compliances. The ratings are dependent on upheld profits and market share while retaining sufficient cash flows and coverages. Nevertheless, adherence to maintain its debt metrics at an acceptable level is a prerequisite.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com