Karachi September 20 2021: The management of Ferozsons Laboratories Limited is actively pursuing new products to enhance its growth, as per information shared at Pakistan Stock Exchange by the company.
To strengthen its existing generics base, Ferozsons Laboratories has launched new products in the Gastroenterology, Diabetes and Anti-Infective therapeutic areas during the year. The Company has also added Cardiac Rhythm Management and Neuromodulation segments in its medical devices portfolio and is exploring other partnerships in areas where unmet patient needs exist.
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Pakistan’s pharmaceutical sector has tremendous growth potential and can significantly contribute towards the growth and diversification of its export base. The Government of Pakistan has taken encouraging steps to support the industry’s expansion, including the State Bank of Pakistan’s Temporary Economic Refinance Scheme and the move by the Ministries of Commerce and Finance to support a 5% cap on the custom duties on import of plant and machinery by the registered pharmaceutical manufacturers.
However, Sales Tax on imports of plant and machinery, which constitutes 17% to 20% of the import cost, is the largest cost component in terms of import levies. This tax cannot be passed by the industry, since, in the case of pharmaceuticals, there is no GST on the finished product.
Keeping in view the growth potential of the industry, any relaxation in the Sales Tax on import of plant and machinery will significantly increase the pace of quality upgradation and expansion in the sector and increase the competitiveness of local companies in the export markets.
Stock rallied 8.6 percent since start of the year as its profitability closed at PKR 1.3 billion in fiscal year 2021 against PKR 422 million achieved last year.
The consolidated net sales of the Company closed at PKR 8,879 million, a growth of 43% over the last year. On a standalone basis, net sales of the Company closed at PKR 7,034 million, an increase of 30% over the last year.
The higher increase in consolidated net sales represents the added sale of Remidia Injections (Remdesivir) in export and local markets, produced by subsidiary company BF Biosciences Limited, under license from Gilead Sciences, Inc. In-market generic sales witnessed a growth of 18%, whereas institutional sales of generics and medical devices increased by 49%. Standalone exports sales of the Company also grew by 49% during the year under review.
