Citi Pharma Secures CCP Approval to Acquire Pakheim Pharma
The Competition Commission of Pakistan (CCP) has granted its approval to Citi Pharma Limited (CPHL) for the acquisition of Pakheim International Pharma (Private) Limited, according to a recent disclosure made by the company to the Pakistan Stock Exchange.
Details of the acquisition approval
The CCP’s authorization, issued on October 9, 2026, under Section 31(1)(d)(i) of the Competition Act, 2010, was based on an assessment that the merger does not adversely affect market competition. This acquisition consent follows the Share Purchase Agreement signed on May 6, 2026, and will proceed once all legal and regulatory formalities are addressed.
Citi Pharma first publicized its intent to acquire Pakheim earlier this year as a strategic component of its expansion plan. The firm anticipates leveraging operational synergies to enhance productivity and scale its footprint in both domestic and overseas pharmaceutical markets.
Strategic significance for Citi Pharma
Pakheim currently reports an annual revenue of approximately Rs500 million. Citi Pharma aims to elevate this figure to Rs5 billion within five years by broadening the product portfolio, optimizing distribution channels, and investing in manufacturing capacity.
The acquisition introduces a flexible payment arrangement, extendable until December 31, 2026, to be financed through Citi Pharma’s internal cash flows. Additionally, the deal is expected to boost Citi Pharma’s active pharmaceutical ingredient (API) business since Pakheim will source APIs directly from Citi Pharma, facilitating higher API sales and improved manufacturing efficiency.
Moreover, acquiring Pakheim enables Citi Pharma to establish a distinct brand in the trading segment, thereby expanding its customer base and increasing trading volumes.
Why this matters for Pakistan’s pharmaceutical sector
This transaction reflects growing consolidation in Pakistan’s pharmaceutical industry, signaling efforts by local companies to strengthen their market positions amid intensifying competition. The projected expansion in revenue and manufacturing capacity could increase the availability of domestically produced pharmaceutical ingredients and finished products, potentially reducing reliance on imports.
For Pakistani consumers and businesses, this development could lead to improved access to medicines and healthcare products. Additionally, the scaling-up of operational capabilities may encourage greater innovation and investment within the sector, supporting economic growth and employment.
Citi Pharma’s CEO succinctly expressed optimism regarding the merger’s benefits, stating it was a key step in the company’s growth trajectory.
