Citi Pharma Limited (PSX: CPHL) has entered into an exclusive supply agreement with India’s Murli Krishna Pharma (Private) Limited for the supply of high-quality Active Pharmaceutical Ingredients (APIs) and products exclusively to CPHL in the Pakistan market, the company informed PSX on Tuesday.
Under the terms of this Agreement, Murli Krishna Pharma Private Ltd has agreed not to supply any of the APIs in N-1 form (the form they will be supplying to CPHL) to any other company in Pakistan except Citi Pharma. This exclusivity ensures that Citi Pharma Limited will have the sole right to market, distribute, and sell these exclusive products within Pakistan, the filing stated.
The filing further explained, “Murli Krishna Pharma Private Ltd is committed to supplying the Exclusive Products to Citi Pharma Limited in accordance with the highest quality standards in the pharmaceutical industry, complying with British Pharmacopoeia (BP) or United States Pharmacopeia (USP) standards, or as specified by our regulatory team. This commitment to quality and exclusivity is a significant milestone for both companies and underscores our dedication to providing the best pharmaceutical products to the market”.
This Agreement is anticipated to generate a turnover increase of Rs. 2.8 billion, with the cost of sales expected to rise by Rs. 2.38 billion.
“The increase in operational costs due to this Agreement is projected to be minimal, as we will be leveraging Citi Pharma’s existing resources,” the filing added.
At the time of filing, CPHL’s scrip at the bourse was Rs. 32.19, up 9.01 percent or Rs. 2.66 with 5.19 million shares on Tuesday.
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Isn’t trade with India banned?
A good development if our authorities also control the importer (being the sole dealer) to sell the products at competitive rates. Otherwise it will not beneficial for the public.