VIS holds stable outlook on Searle

September 30, 2025 (MLN): VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of The Searle Company Limited (PSX: SEARL) at ‘AA-/A1’ (Double A Minus/A One) with a Stable outlook. The previous rating action came on July 10, 2024.

The long-term rating of ‘AA-’ indicates high credit quality with strong protection factors, while the short-term rating of ‘A1’ reflects a strong likelihood of timely repayment of obligations supported by excellent liquidity.

Incorporated in 1965 and listed on the Pakistan Stock Exchange since 1993, SEARL is among the country’s leading pharmaceutical manufacturers and marketers.

As of May 2025, it ranked fifth by value and third by volume in the domestic pharmaceutical market, commanding a 4.1% share. Its portfolio spans pharmaceuticals and consumer healthcare products, with recent expansion into biosimilars and intravenous therapies.

The Searle Company is backed by International Brands Limited (IBL) Group, which holds a 50.25% controlling stake. As of March 2025, SEARL’s investment portfolio accounted for 46.6% of its non-current assets, following the Group’s disposal of its subsidiary, Searle Pakistan Limited (SPL).

VIS noted that the reaffirmed ratings reflect SEARL’s established market presence, well-diversified therapeutic offerings, and continued sponsor support from the IBL Group.

The Company has maintained topline growth and robust gross margins, though profitability has been impacted by financing costs linked to the leveraged buyout of its subsidiary and one-off impairment charges from divestment.

Sector fundamentals remain favorable, supported by resilient domestic demand, ongoing pricing reforms, and growing export opportunities.

However, exchange rate volatility and uncertainty over the continuation of pricing deregulation pose potential risks.

Copyright Mettis Link News