Pfizer Sells Pakistan Facility, Brands Amid Denial of Total Exit
M. Waqar Bhatti
Islamabad: Despite the deregulation of medicine prices by the government of Pakistan, another multinational pharmaceutical company Pfizer exited Pakistan by selling its manufacturing facility in the SITE area of Karachi along with ‘selected pharmaceutical products’ to Lucky Core Industries (LCI), officials announced on Saturday.
Prior to Pfizer’s exit, several other multinational pharmaceutical companies including Sanofi, Roche, Eli Lilly, and German pharmaceutical firm Bayer have exited Pakistan during the last few years by selling their manufacturing facilities and products to local groups.
The Drug Regulatory Authority of Pakistan (DRAP) and Pfizer officials, however, refuted Pfizer’s ‘total exit’ from Pakistan saying Pfizer has only sold its manufacturing facility in Karachi and certain products, which is part of ‘routine business activities’ and ‘mergers and acquisitions’ which happen in the corporate world on the regular basis.
The Lucky Core Industries (LCI) in a letter submitted to Pakistan Stock Exchange Limited on May 10, 2024, said the Board of Directors of Lucky Core Industries Limited (the ‘Company’) has approved the purchase of a manufacturing facility owned by Pfizer Pakistan Limited located at B2 SITE Karachi, along with the acquisition of certain pharmaceutical products, and the acquisition of trademarks associated with the said pharmaceutical products (either through an outright assignment of the trademarks or a perpetual license to use the relevant trademarks) from relevant Pfizer group entities.
“The Board of Directors of the Company have further authorized the finalization and execution (as necessary) of the definitive transaction documents/agreements including the Asset Purchase Agreements, Trademark License Agreement, and all ancillary documents forming part of the transaction with Pfizer Pakistan Limited and/or its group entities (as applicable).
The completion of the transaction will be subject to receipt of necessary approvals and completion of formalities”, the letter to PSEL by LCI Company Secretary Laila Bhatia Bawany says.
LCI Chief Executive Asif Jooma in a letter circulating on social media announced that the LCI Board of Directors has approved an asset acquisition of a manufacturing facility owned by Pfizer Pakistan Limited located in Karachi.
“The transaction also entails the acquisition of select pharmaceutical products as well as associated trademarks from relevant Pfizer entities”.
The Board has authorized the finalization and execution of the definitive transaction documents/agreements. An announcement in this regard has been made to the Pakistan Stock Exchange earlier today, Asif Jooma further announced.
“As we embark on this exciting new chapter, I want to reflect on our journey in pharmaceutical manufacturing which began in 2016 with the acquisition of Cirin Pharmaceuticals (Private) Limited. Beverage Industry Trying to Derail Public Health Agenda
We subsequently expanded our portfolio by acquiring assets from Wyeth Pakistan Limited and Pfizer Pakistan Limited, integrating renowned brands like Mucaine, Citralka, and Lederplex, amongst others, thereby strengthening our position in the market”, he maintained.
This transaction will add another building block in our growth journey whilst we continue to enrich the lives of those around us by delivering quality medicines and healthcare products, enabling LCI to expand its manufacturing base, its reach through diversification of its product portfolio, implementing synergies and strengthening its position in the marketplace, Asif Jooma added.
Responding to speculations about Pfizer’s exit, DRAP and Pfizer officials emphasized that Pfizer has not completely exited Pakistan and is expected to issue an official statement regarding the acquisition to LCI.
“After the deregulation of medicine prices except for the essential medicines, the Pakistani pharmaceutical sector has become a lucrative sector and we are homing many more multinational companies to come to Pakistan.
As far as Pfizer is concerned, it is facing a crisis due to setbacks it’s suffered because of the COVID-19 vaccine it produced which is no more required”, an official of the DRAP claimed.
