AGP Limited has announced a major corporate reorganization that will merge multiple pharmaceutical businesses into a single integrated healthcare platform, a move expected to add Rs. 37.5 billion in annual revenue and elevate the company into Pakistan’s top 10 pharmaceutical firms.
According to a disclosure submitted to the Pakistan Stock Exchange, AGP’s board has approved the merger of OBS AGP, OBS Pakistan and the substantive business operations of OBS Pharma into AGP Limited, alongside a restructuring involving parent company Aitkenstuart Pakistan. The transaction remains subject to shareholder, regulatory and court approvals.
The company said the proposed arrangement would increase the merged entity’s annual revenue by approximately Rs. 37.5 billion, taking combined sales to around Rs. 87 billion. Profit before tax is projected to rise by about Rs. 1.9 billion to more than Rs. 5.6 billion based on pro forma 2025 financial statements.
According to JS Global Research, the transaction will result in the issuance of approximately 108.7 million new AGP shares, increasing the company’s outstanding shares from 280 million to nearly 389 million. The merged platform is expected to trade at an implied price-to-earnings ratio of about 9.3x based on CY25 earnings.
The merger will bring together several high profile pharmaceutical portfolios, including products originating from Sandoz, Viatris and Bayer businesses. AGP is expected to gain stronger positions in gynecology, consumer healthcare and dermatology while adding blockbuster brands such as Ciproxin, Primolut N, Gravibinan, Travocort, Travogen, Skinoren, Noctamid, Testoviron and Utrogestan.
The company also plans to expand its manufacturing footprint from three facilities to four. A specialized manufacturing plant located in Lahore’s Quaid-e-Azam Industrial Estate, spread across more than three acres, will be added to the group. The facility focuses on hormonal and psychotropic products, strengthening AGP’s capabilities in higher value therapeutic categories.
AGP expects the merger to be value accretive for shareholders by approximately 10.5 percent while simplifying the group’s corporate structure, improving capital allocation and generating operational synergies across manufacturing, distribution, procurement and commercial operations.
Founded in 1989, AGP has grown into one of Pakistan’s leading pharmaceutical companies with operations spanning prescription medicines, consumer healthcare and specialty therapies. The company markets a portfolio of local and international brands and has steadily expanded its presence across key therapeutic segments.
