Citi Pharma to Acquire Lahore-Based Medicine Manufacturer in Strategic Expansion Move

Citi Pharma to Acquire Lahore-Based Medicine Manufacturer in Strategic Expansion Move

Citi Pharma Limited (PSX: CPHL), one of Pakistan’s largest manufacturers of active pharmaceutical ingredients (APIs), has announced plans to acquire 100% shareholding of Pakheim International Pharmaceuticals (Private) Limited, a Lahore-based medicine manufacturer. The proposed acquisition, approved by the Board of Directors on May 6, 2026, marks a significant step in the company’s long-term growth strategy to strengthen its manufacturing capacity, expand its product portfolio, and broaden its market footprint.

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The transaction includes Pakheim’s associated assets, licenses, and operations, and is subject to regulatory approvals, completion of legal, financial, and tax due diligence, and all requisite clearances under applicable laws. Financing for the deal will be arranged through a combination of internal cash resources and available banking facilities, with the payment plan extending until December 31, 2026.

Acquisition DetailInformation
AcquirerCiti Pharma Limited (PSX: CPHL)
TargetPakheim International Pharmaceuticals (Private) Limited
Acquisition Size100% shareholding
Target Annual Revenue~Rs. 500 million
FinancingInternal cash resources + banking facilities
Payment TimelineUntil December 31, 2026
StatusBoard approved; subject to due diligence and regulatory approvals

Strategic Rationale

Pakheim International Pharmaceuticals operates an established pharmaceutical manufacturing facility and holds multiple DRAP-registered products. The acquisition is expected to generate significant operational synergies, optimize production efficiencies, and support expansion in both local and international markets. Notably, the acquired operations will source APIs directly from Citi Pharma, improving capacity utilization and supporting higher API sales.

Citi Pharma has outlined a long-term growth strategy targeting revenue of Rs. 5 billion over the next five years through portfolio expansion, stronger distribution networks, and continued investment in manufacturing and product development.

About Pakheim International Pharmaceuticals

Pakheim International Pharmaceuticals (Private) Limited is a Lahore-based medicine manufacturer with an established production facility and multiple DRAP-registered pharmaceutical products. The company currently generates annual revenue of approximately Rs. 500 million.

About Citi Pharma Limited

Citi Pharma Limited (PSX: CPHL) is the largest API manufacturer in Pakistan, with a track record of excellence spanning over 13 years. The company delivers one of the broadest portfolios in the API industry, including nutraceuticals, general formulations, and biologics. Headquartered in Lahore and established in 2012, Citi Pharma has a market capitalization of approximately Rs. 18.22 billion and is listed on the Pakistan Stock Exchange. The company is also developing Pakistan’s largest state-of-the-art research and development laboratory.

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