AGP set to enter Pakistan’s top 10 pharma firms

May 22, 2026 (MLN): AGP Limited (PSX: AGP) has revealed a sweeping corporate restructuring plan aimed at creating one of Pakistan’s largest integrated pharmaceutical platforms, in a move expected to lift annual revenue to nearly Rs37.5 billion and push the company into the country’s top 10 pharma players.

The company informed the Pakistan Stock Exchange on Friday that its Board of Directors approved a transformative merger and integration initiative involving its subsidiaries and associated businesses across multiple meetings held on May 15, 20, and 22.

The proposed arrangement includes the merger of OBS AGP (Private) Limited and OBS Pakistan (Private) Limited into AGP, alongside the integration of the substantive business operations of OBS Pharma (Private) Limited.

The restructuring also involves adjustments linked to Aitkenstuart Pakistan (Private) Limited, the parent company of AGP.

According to the company, the combined platform is expected to increase AGP’s topline by approximately Rs8.7bn to Rs37.5bn, while profit after tax is projected to jump by around Rs1.9bn to more than Rs5.6bn on a pro forma basis using audited 2025 financial statements.

AGP stated that the arrangement is expected to be around 10.5% accretive for existing shareholders and will significantly strengthen its market positioning through broader product depth, enhanced manufacturing capabilities, and operational synergies.

The merged entity is expected to climb from 15th position into the top 10 pharmaceutical companies in Pakistan based on IQVIA market data.

As part of the transaction structure, AGP plans to issue over 116 million ordinary shares to shareholders of the merging entities under approved swap ratios, while certain shares allocated to Aitkenstuart will be adjusted as part of the demerger process.

The company said the transaction will simplify group operations by eliminating overlapping corporate layers and consolidating manufacturing, commercial, distribution, and support functions under a unified platform.

AGP’s manufacturing footprint will expand from three to four facilities after the integration, including a specialized hormonal and psychotropic manufacturing plant located at Quaid-e-Azam Industrial Estate spread over three acres.

The merger will also diversify AGP’s portfolio through expansion into gynaecology and consumer healthcare dermatology while adding several blockbuster brands including Ciproxin, Primolut N, Gravibinan, Travocort, Travogen, Skinoren, Noctamid, Testoviron, and Utrogestan.

The company noted that the integration is expected to unlock long-term cost and operational synergies through procurement optimization, streamlined logistics, expanded distribution reach, and unified sales infrastructure.

To oversee the process, AGP constituted an independent “Merger Committee” comprising independent and non-executive directors, supported by external legal and financial advisors for valuation, swap ratios, structuring, and regulatory review.

The proposed arrangement will be implemented through a Scheme of Arrangement under the Companies Act, 2017, subject to shareholder, creditor, regulatory, and court approvals, including sanction from the High Court of Sindh.

If approved, the scheme will take effect retrospectively from January 1, 2026.

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