Citi Pharma Limited (CPHL), a Pakistani pharma company, has formed a strategic relationship with India’s Murli Krishna Pharma Private Ltd (MKPL).
Under the terms of the agreement, MKPL will supply Citi Pharma Limited with Active Pharmaceutical Ingredients (APIs) and products in Pakistan.
CPHL announced the development in a notification to the Pakistan Stock Exchange (PSX) on Tuesday.
Citi Pharma Limited is happy to announce that it has entered into an agreement with Murli Krishna Pharma Private Ltd, a business formed and operating under Indian laws, according to the notification.
Murli Krishna Pharma Private Ltd. is a 20-year-old company that offers a variety of creative solutions to improve the distribution of pharmaceutical products.
In its notice to the bourse, CPHL stated that the purpose of this exclusive strategic alliance is to create the terms and circumstances under which Murli Krishna Pharma Private Ltd would deliver high-quality APIs and products exclusively to CPHL in the Pakistan market.
Under the terms of this agreement, MKPL promises not to supply any of the APIs in N-1 form (the form they will deliver to us) to any other Pakistani firm other than Citi Pharma.
This exclusivity assures that Citi Pharma Limited has the unique right to market, distribute, and sell these exclusive pharmaceuticals in Pakistan, it noted.
According to the statement, Murli Krishna Pharma Private Ltd will supply the exclusive products to Citi Pharma Limited in “accordance with the highest standards of quality in the pharmaceutical industry, complying with British Pharmacopoeia (BP) or United States Pharmacopoeia (USP) standards, or as specified by our regulatory team.”
“This agreement is expected to bring in a turnover increase of Rs2.8 billion, with the cost of sales expected to rise by Rs2.38 billion,” according to Citi Pharma.
“The increase in operational expenses due to this agreement is projected to be not significant, as we will be leveraging Citi Pharma’s existing resources,” the company said.
According to the statement, after successfully completing phase one of this agreement (the first two years), the two firms have agreed to discuss and negotiate the extension of their supply chain to other countries, including but not limited to the United States and the Kingdom of Saudi Arabia.
