Citi Pharma boosts API production with infrastructure upgrades

February 11, 2025 (MLN): Citi Pharma Limited (PSX: CPHL) has made significant progress in expanding its Active Pharmaceutical Ingredients (API) segment, completing civil works for API facilities, including paracetamol and a new multi-purpose API facility for Ascorbic Acid, Chloroquine Phosphate, and Hydroxy Chloroquine Phosphate.

These developments were highlighted in Citi Pharma Limited’s annual progress report, released in compliance with the Public Offering Regulations, 2017, detailing its financial and operational performance following its Initial Public Offering (IPO) in July 2021.

According to the report, Citi Pharma successfully disclosed all required financial information and expansion details for the period from January 1, 2024, to June 30, 2024.

The audit, conducted by Aslam Malik & Co., confirmed that the financial records aligned with the company's IPO prospectus.

The Formulation Segment also saw major developments.

Civil works for the Cephalosporin unit were finalized, and essential plant and machinery, including clean rooms, vial filling machines, high-performance liquid chromatography (HPLC) equipment, and automated capsule filling machines, were acquired.

Additionally, the company has procured essential machinery such as boilers and fluid bed dryers.

Despite these advancements, the Hospital Facility Project has faced significant delays due to regulatory constraints imposed by the Lahore Development Authority (LDA), the report noted.

Initially planned for Gulberg, Lahore, the project was relocated to DHA Rahbar, Raiwind Road, Lahore, due to space limitations and regulatory challenges.

The company is currently in the process of commercializing the new land, the report added.

Financially, Citi Pharma reported that IPO funds were utilized as planned, generating a total of Rs2.035 billion.

While investments in the API and Formulation segments progressed as projected, no amount has yet been allocated toward the hospital facility.

The company also allocated funds toward working capital and loan repayments, with the working capital funds fully utilized and rolled over multiple times in the business cycle.

The Board of Directors has authorized capital expenditures in line with Citi Pharma’s strategic growth initiatives.

The company aims to continue its expansion efforts while addressing challenges in the hospital project to ensure compliance with regulatory and operational standards, the report stated.

Ghulam Dastgeer, Company Secretary, and Asif Iqbal, Chief Financial Officer, signed off on the report, affirming the company's commitment to transparency and long-term growth.

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