Pakistan IPO Summit -

2016
OBS Group

AGP Limited

Pharmaceutical Industry of
Pakistan
 OBS Group
Companies under OBS
Group
Established in 1963, OBS is one of Pakistans 1. OBS Healthcare (formerly
leading corporations in the healthcare Organon Pakistan);
2. OBS Pakistan (formerly Merck
segment Sharp & Dohme of Pakistan);
3. Schering Plough Pakistan;
OBS specializes in international partnerships 4. Aklima Clinical Research;
5. AGP Limited;
and fostering strategic alliances with reputed 6. Aspin Pharma (J&J Pharma)
international firms whose products touch the
lives and well being of people around the OBS Group Financial Highlights
world (PKR
2012 2013 2014 2015 2016E
mn)
Turnove
OBS provides full range of high quality 2,143 2,629 6,433 7,997 8,697
r
professional services including clinical PBT 347 218 965 942 2,096
Total 13,00 16,92 17,23
research, manufacturing, marketing, sales Assets
2,535 3,071
1 2 0
and distribution of pharmaceutical & Equity 541 664 4,388 4,978 6,338
consumer healthcare products

Expe

Area
rtise

s of
It is currently ranked 11th pharmaceutical
company out of 700+ multinational and local
1. Anti-infectives 7. Ophthalmology
companies in Pakistan 2. Cardiology 8. Respiratory
3. CNS 9. Women Health
4. Diabetes & (Infertility, HRT &
Strong presence in Pakistan, Afghanistan and Metabolic Contraception)
Sri Lanka and in process of expansion to CIS 5. Disorders 10. Vaccines
6. Gastroenterology
Countries, Myanmar, Cambodia and Africa
 OBS Journey
2006 Sales Revenue 2016 E
PKR 350mn ~ PKR 8.7
bn
58th Market Ranking 11th

OBS HEALTHCARE OBS PAKISTAN OBS SRI LANKA AGP ASPIN PHARMA SANTEN PHARMA,
Acquired in July JAPAN
Dedicated for Dedicated A strategic Acquisition of
Organon legacy for MSD alliance with 2014 Janssen A strategic
products legacy Merck & Co. International Brands and alliance with
products Inc. USA to alliances include Johnson & Santen (a global
Formerly a ophthalmic
acquire part Eli Lilly, GSK, Johnson
subsidiary of Formerly a company) to
of their UCB and Alcon Pakistan
NV Organon, subsidiary of represent them
portfolio for Facility.
the Netherlands Merck & Co. in Pakistan
Sri Lanka Acquired in
Inc, USA Launch in May
Operations
July 2015
2016
200 201 201
2006 2008 2009 2015 2016
7 0 4

OBS PHARMA AKLIMA CLINICAL SCHERING PLOUGH MYLAN (USA)

Incorporation
Incorporation of RESEARCH PAKISTAN A
A strategic
OBS Pharma A joint venture Dedicated
Dedicated for alliance with
(Pvt.) Ltd, a with Norton Schering Plough MYLAN USA to
sister concern Audits Inc. USA legacy products promote their
focusing on for clinical Formerly a complete
branded generic research subsidiary of portfolio in
and consumer services and Schering Plough Pakistan
health products trial USA Launched in
Top International Brands in OBS Group

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OBS Group

AGP Limited

Pharmaceutical Industry of
Pakistan
 AGP Limited
International
The company began Affiliations
operations in 1989 and has
performed by leaps &
bounds ever since

AGPs business comes

from both the
manufacturing, sale and
marketing of products of
international repute whilst
marketing & Historic Overview Company Financials
manufacturing under its (PKR
2012 2013 2014 2015 2016E
own brand Millions)
Turnover 2,699 3,110 3,338 3,748 4,250
Gross Profit 1,573 1,811 1,906 2,162 2,444
Profit after 686 809 873 643
OBS acquired AGP in July 1,003
Tax
2014 Total Assets 1,380 1,887 2,192 8,351 8,436
Equity 1,068 1,555 1,248 3,190 4,193

AGPs product portfolio 58% 24% PKR

comprises of over 110 3.58
variants of 44 products,
which contributed to a top
line of PKR 3.7 billion in Gross Profit Net Profit*Expected EPS
2015
Margin Margin 2016
 AGP Product Portfolio
AGPs Portfolio consists of 44 brands products including 8
star products
AGP pursues an aggressive product AGPs Product Portfolio is divided into 5
development strategy and has a Main Business Units
robust product pipeline GYNAE A Gynae / Orthopedic /
3 new products were launched in Antibiotic Products
2015
6 new products have been launched
in 2016 - 1 to be launched by end of GYNAE B Gynae, Pain
Nov 2016 management / Anti-
Agreement signed with Mylan in 2015 Spasmodic
- 2 products launched in 2016
Product registration in Sri Lanka, PAEDS Antibiotics/ Anti
Myanmar and Total Sales in process
Tajikistan Asthmatic drugs for
Volume
At least six new launches planned in children
3,744
2017
4,000 (PKR Millions)
3,338
3,110
3,500 INTERNAL General physician
3,000 MEDICINE A products, Gastro
2,500 Enterology Products,
2,000 Antiallergens
1,500
1,000 INTERNAL General physician
500 MEDICINE B products, Broad-
- Spectrum Antibiotics &
2013 2014 2015 Antiallergens
OBS Group

AGP Limited

Pharmaceutical Industry of
Pakistan
 Pharmaceutical Industry of
Pakistan Industry Analysis
Sales Exports
2014 2015 2016 2017f 2018f
USD 3bn USD Pharmaceutical sales,
USD bn 2.35 2.63 3.0 3.42 3.90
200mn+ Sales, % of GDP 0.99% 1.02% 1.12% 1.19% 1.25%
Sales, % of health
35.3% 34.8% 34.0% 33.0% 31.9%
expenditure
The domestic Pakistan market demonstrates
Local Companies more than 14.2%
Health spending, USD compound annual growth
3,500
Market MNCs (37%) bn over the last five years comparing
6.48 7.06 favorably
7.59 8.17 8.83
(63%)
Share 3,000 to international growth rates
2,500
2,000
1,500
700+ registered companies, 1,000
including 400 pharmaceutical
Market Size 500
manufacturing units; 25
multinationals 0
2,026
2012 2,177
2013 2,355
2014 2,633
2015 3,002
2016
GSK, Abbott Laboratories, Getz , Sami,
Top Market
Searl, Sanofi Aventis ,Pfizer Laboratories, Regional Analysis
players
Novartis, Hilton, Ferozsons, OBS
Regional Analysis (in Pakist Banglade
Domestically India
Pain killers, anti-stress and anti- USD) an sh
produced Total Pharmaceutical
depressants, anti-infective, homeopathic 3.0bn 21bn 1.5bn
drugs Market
Antibiotics, vaccines, analgesics, Growth Rate 14% 20% 12%
Imported International Ranking
tranquillizers, drugs for treating 45 13 58
products
cardiovascular diseases and cancer Value Wise
Pharmaceutical
US, UK, Germany, Switzerland, Japan, 700 25,000 210
Import Companies
Netherlands, France, China and
markets USFDA / MHRA Approved
Indonesia 0 523 4
Plants
Source: IMS, Pakistan Pharmaceutical Manufacturers Association, Pakistan Economic Survey & BMI Research
Regulator Drug Regulatory Authority of Pakistan >160m >15,500
Pharmaceutical Exports 50mn
 Local Sector
Performance
The pharma sector performed very well in the past 5 years and this growth is
expected to continue going forward due to:
Increasing foreign investor interest in pharma stocks
Diversion of focus to Consumer Healthcare Business
Focus on exports/New product launches
Population growth/increased per capita spending on health
Valuations have improved significantly with the sector currently trading at a P/E
multiple of 23.7
Stability of PKR vs. USD would help keep costs of raw materials low as most raw
materials are imported
Players are looking to diversify intoNutrition and Diagnosticsproducts segment &
adding them into the product portfolio mix for better margins
Price Earnings Price to Sales Price to Book
Multiple Multiple Multiple
Avg. 22.8 Avg. 3.44 Avg. 6.75
8.7
32.0 10.0 8.5
35.0 7.0 9.0 6.9
30.0 23.1 22.9 25.5 5.8 8.0
25.0 6.0 7.0 5.5
20.0 5.0 3.9 6.0 4.1
15.0 10.7 4.0 2.6 2.8 5.0
10.0 3.0 2.1 4.0
5.0 2.0 3.0
0.0 1.0 2.0
1.0
0.0 -
Muhammad Kamran Mirza
Head - Investment Banking Group
JS Bank Limited
1st Floor - Shaheen Commercial
Complex
Dr. Ziauddin Ahmed Road
Karachi-74200, Pakistan
URL: www.jsbl.com
UAN: (+92 21) 111-JS BANK (572-265)
Tel: (+92 21) 3227 2534
Muhammad Kamran Nasir
CEO
JS Global Capital Limited
6th Floor - Faysal House
Main Shahra-e-Faisal
Karachi, Pakistan
URL: www.jsgcl.com
UAN: (+92 21) 111-574-111
Tel: (+92 21) 3279 9558