Key Points
- Pakistan’s Citi Pharma plans to expand its business by acquiring another local company.
- The competition regulator approved the purchase of Pakheim International Pharma after reviewing its potential impact on market competition.
- Citi Pharma aims to increase Pakheim’s annual revenue tenfold within five years while boosting sales of pharmaceutical ingredients.
ISLAMABAD: Pakistan’s competition watchdog has approved pharmaceutical manufacturer Citi Pharma Limited’s proposed acquisition of 100 per cent of Pakheim International Pharma (Private) Limited, clearing a key regulatory hurdle for the deal.
Citi Pharma disclosed the approval in a filing to the Pakistan Stock Exchange on Monday, saying the Competition Commission of Pakistan (CCP) had authorised the transaction through an order dated October 9, 2026.
The commission reviewed the proposed acquisition and determined that it did not raise competition concerns, according to the filing. The approval was granted under Section 31(1)(d)(i) of Pakistan’s Competition Act, 2010.
“The acquisition shall proceed in accordance with the terms of the Share Purchase Agreement dated May 6, 2026, and upon completion of the applicable legal, regulatory and other formalities,” the company said.
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Citi Pharma announced the planned acquisition in May as part of its strategy to expand its pharmaceutical business, improve production efficiency and strengthen its presence in domestic and international markets.
At the time, the company said Pakheim generated annual revenue of about Rs500 million, equivalent to $1.8 million at an exchange rate of Rs280 to the dollar.
Citi Pharma aims to increase Pakheim’s annual revenue to Rs5 billion, or about $17.9 million at the same exchange rate, within five years.
The target represents a tenfold increase through an expanded product portfolio, improved distribution and investment in manufacturing.
The buyer has structured the transaction with a flexible payment plan extending until December 31, 2026, with payments to be met through operating cash flows, Citi Pharma said.
Pakistan focus on pharmaceutical ingredients
Citi Pharma expects the acquisition to strengthen its presence in active pharmaceutical ingredients (APIs), the substances responsible for the medicine’s therapeutic effects and essential components of drug manufacturing.
The company said Pakheim’s acquired operations would source APIs directly from Citi Pharma, a move expected to increase ingredient sales and improve utilisation of its manufacturing capacity.
The acquisition is also intended to expand Citi Pharma’s pharmaceutical trading business by adding a brand, broadening its customer base and increasing trading volumes.
Citi Pharma said the transaction would help generate operational synergies, improve production efficiency and extend its overall market presence.
The company’s revenue target for Pakheim will depend on its ability to expand sales, strengthen distribution and invest in manufacturing over the next five years.
The competition watchdog’s approval clears the transaction at the competition-review stage, but the acquisition remains subject to the completion of applicable legal, regulatory and contractual formalities.
For Citi Pharma, the deal offers a route to expand through an existing pharmaceutical business while creating an additional source of demand for its own ingredients and products.
