Citi Pharma Pakistan Inks Supply Agreement with Indian Company

Citi Pharma Pakistan Inks Supply Agreement with Indian Company

Karachi, July 2, 2024 – Citi Pharma Limited Pakistan has announced a landmark agreement with Murli Krishna Pharma Private Limited, an Indian company. The partnership, revealed on Tuesday, aims to enhance the pharmaceutical landscape in Pakistan through the supply of high-quality Active Pharmaceutical Ingredients (APIs) and products.

In a communication shared with the Pakistan Stock Exchange (PSX), Citi Pharma outlined the details of this exclusive strategic partnership. The agreement establishes the terms and conditions under which Murli Krishna Pharma will supply APIs exclusively to Citi Pharma Limited for the Pakistani market. This exclusivity clause ensures that Citi Pharma will have the sole right to market, distribute, and sell these products within Pakistan, setting a precedent in the industry for such a collaboration.

Under the agreement, Murli Krishna Pharma Private Limited commits not to supply the APIs in N-1 form—the form they will be providing to Citi Pharma—to any other company in Pakistan. This exclusivity is designed to give Citi Pharma a competitive edge in the market, allowing them to offer unique and high-quality pharmaceutical products.

Murli Krishna Pharma is dedicated to supplying these exclusive products in compliance with the highest industry standards. The company will adhere to the British Pharmacopoeia (BP) or United States Pharmacopeia (USP) standards, or as specified by Citi Pharma’s regulatory team. This commitment to quality underscores the significance of this partnership for both companies, highlighting their dedication to delivering top-tier pharmaceutical products.

The agreement is expected to have a significant financial impact. Citi Pharma anticipates a turnover increase of Rs. 2.8 billion, with the cost of sales expected to rise by Rs. 2.38 billion. Despite the increase in operational costs, the impact on the company’s overall expenses is projected to be minimal, thanks to the efficient utilization of existing resources within Citi Pharma.

“Upon successful completion of Phase One of this agreement (the first two years), Citi Pharma Limited and Murli Krishna Pharma Limited have agreed to discuss and negotiate the expansion of our supply chain to other countries, including but not limited to the USA and the Kingdom of Saudi Arabia,” the communication stated. This potential expansion indicates the long-term vision both companies share, aiming to broaden their reach and impact in the global pharmaceutical market.

The company expressed its excitement about the collaboration and the potential for future growth and expansion. This partnership is not only expected to strengthen Citi Pharma’s product portfolio but also reaffirms their commitment to providing high-quality pharmaceutical products to their customers. The exclusivity and quality assurance provided by Murli Krishna Pharma are seen as pivotal in achieving these goals.

The agreement between Citi Pharma Limited Pakistan and Murli Krishna Pharma Private Limited marks a significant milestone in the pharmaceutical industry. By securing exclusive rights to high-quality APIs and committing to stringent quality standards, both companies are set to enhance their market presence and deliver superior products to the Pakistani market. This partnership highlights the strategic importance of cross-border collaborations in the pharmaceutical sector, promising growth and innovation for both parties involved.