Citi Pharma Limited (CPHL), a Pakistani pharmaceutical company, has entered into a strategic partnership with India’s Murli Krishna Pharma Private Ltd (MKPL).
Under the agreement, MKPL will supply Active Pharmaceutical Ingredients (APIs) and products to Citi Pharma Limited in the Pakistani market.
CPHL shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“Citi Pharma Limited is pleased to announce that we have entered into an agreement with Murli Krishna Pharma Private Ltd, a company incorporated and existing under the relevant laws of India,” read the notice.
Murli Krishna Pharma Private Ltd. is a 20-year-old organisation that provides a range of innovative solutions to optimise the delivery of pharmaceutical preparations.
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In its notice to the bourse, CPHL said this exclusive strategic partnership aims to establish the terms and conditions under which Murli Krishna Pharma Private Ltd will supply high-quality APIs and products exclusively to CPHL in the Pakistan market.
“Under the terms of this agreement, MKPL agrees not to supply any of the APIs in N-1 form (the form they will be supplying to us) 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,” it added.
As per the statement, Murli Krishna Pharma Private Ltd would supply 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 agreement is anticipated to generate a turnover increase of Rs2.8 billion, with the cost of sales expected to rise by Rs2.38 billion,” Citi Pharma said.
“The increase in operational costs due to this agreement is projected to be minimal, as we will be leveraging Citi Pharma’s existing resources,” it added.
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The statement added that upon the successful completion of phase one of this agreement (the first two years), the two companies have agreed to discuss and negotiate the expansion of their supply chain to other countries, including but not limited to the USA and the Kingdom of Saudi Arabia.
“We are excited about this collaboration and the potential it holds for future growth and expansion. This partnership not only strengthens our product portfolio but also reaffirms our commitment to delivering high-quality pharmaceutical products to our customers,” read the notice.
Citi Pharma’s share price rose on Tuesday, closing at Rs32.19 after a gain of Rs2.66 during the session. Nearly 5.3 million shares changed hands.