Pakistan’s listed pharmaceutical sector recorded its highest-ever profitability in 2025, with net earnings rising 78% year-on-year to Rs. 42.2 billion, according to a report by Topline Securities.
The strong performance was driven by higher sales, lower input costs, and reduced finance charges.
On a quarterly basis, profits increased by 53% to Rs. 14.2 billion in the fourth quarter of 2025, compared to Rs. 9.3 billion in the same period last year.
Net sales for the year grew 14% to Rs. 365.7 billion, mainly due to price increases following deregulation of non-essential drugs.
Major contributors to total sales included Abbott Laboratories, GlaxoSmithKline Pakistan, Haleon Pakistan, and The Searle Company. Profitability was further supported by improved margins, with gross margins rising to 41% in 2025 from 35% in 2024.
The improvement was partly due to lower active pharmaceutical ingredient costs, which declined for more than half of the products. Finance costs also dropped significantly by 49% to Rs. 4.2 billion, supported by lower interest rates.
At the company level, AGP, Highnoon Laboratories, and The Searle Company reported the highest margins.
The sector’s tax rate remained stable, while companies distributed Rs. 21.1 billion in dividends, reflecting strong financial performance and investor returns.