Pharma sector’s profit up 11 percent

KARACHI: Domestic pharmaceutical sector recorded a surge of 11 percent in the cumulative profit to Rs4.9 billion for the half-year ended June 30, 2017, analysis of companies, constituting 90 percent weight in the sector’s market capitalization, suggests on Friday.

According to a report issued by Arif Habib Limited, highest growth in profitability was achieved by Sanofi-Aventis, which went up 153 percent on the back of robust growth in vaccine business.

Glaxo’s earnings surged 56 percent, as it benefited from its presence in the consumer healthcare and participation in tenders of the Punjab government.

The profitability of SEARL grew 22 percent on the back of higher sales and lower effective taxation, whereas Abbot’s bottom-line grew 13 percent due to inability to pass on the full inflationary impact. Likewise, Ferozsons profit declined 98 percent, attributable to plunge in net revenues.

“The declining drug ‘SOVALDI’ (highest selling drug of FEROZ) was substituted by several cheaper generic brands of Sofsobuvir available in the market, which eroded the company’s top-line by 52 percent; hence, profitability tanked.

The Drug Pricing Committee (DPC) announced likely increase of three percent in prices, which would bode well for the pharmaceutical sector profitability, going forward.