Lahore: Citi Pharma Limited has announced substantial cost savings and new strategic initiatives following a meeting held on February 06, 2025. The company reported significant financial efficiencies achieved across its major formulation projects, which are expected to bolster its commitment to sustainable growth and quality project execution.
On February 7, 2025, Citi Pharma Limited shared the outcomes of its recent meeting, highlighting the cost-saving measures implemented by leveraging existing resources such as land, buildings, and allied services. The company realized cost savings totaling PKR 1.19 billion from its three major formulation projects, with an average savings percentage of 52%.
The detailed breakdown of savings includes the Biotech Formulation (Ampoules) project, which had a total project cost of PKR 843.72 million and achieved savings of PKR 460.00 million, representing 55% in savings. The Carbapenem Formulation (3-sections) project saved PKR 360.00 million from a total cost of PKR 593.77 million, marking a 61% savings. The Penicillin Formulation (4-sections) project realized savings of PKR 370.00 million from a total cost of PKR 857.83 million, accounting for 43% in savings.
According to information available from the Pakistan Stock Exchange (PSX), these efforts underscore Citi Pharma Limited's dedication to financial prudence and strategic growth, while maintaining high standards of quality in its operations. The company is also set to establish the first Carbapenem API production facility in Pakistan, alongside its Carbapenem Formulation facility, signifying a major milestone in the country's pharmaceutical industry.
In a move to capitalize on its real estate assets, Citi Pharma Limited's board has approved the formation of a Real Estate Investment Trust (REIT) Management Company, to be a wholly owned subsidiary. This strategic initiative aims to unlock the value of real estate assets estimated at PKR 5.70 billion. The properties include land at Hali Road, Gulberg III, Lahore; land opposite DHA Rahbar, Lahore; and land near Islamabad Airport, covering substantial areas.
The REIT Management Company will integrate advanced infrastructure and a highly skilled professional team, employing an innovative hybrid structure that combines Citi Pharma Limited's pharmaceutical expertise with REIT operations. The introduction of investment schemes will be phased to ensure optimal returns for shareholders.
Citi Pharma Limited has emphasized that all projects will be financed through internal cash flows, negating the need for external financing. This approach highlights the company's commitment to financial sustainability and strategic value creation. The company expressed gratitude for the ongoing support and confidence of its stakeholders as it advances these initiatives.
As a part of the designated market category, Citi Pharma Limited continues to focus on strategic expansion and resource optimization to ensure long-term success and enhanced shareholder value.