1. Pakistan IPO Summit

2. OBS Group
AGP Limited
Pharmaceutical Industry of Pakistan

3. Companies under OBS Group
OBS Healthcare (formerly Organon Pakistan);
OBS Pakistan (formerly Merck Sharp & Dohme of Pakistan);
Schering Plough Pakistan;
Aklima Clinical Research;
AGP Limited;
Aspin Pharma (J&J Pharma)
Companies under OBS Group
Established in 1963, OBS is one of Pakistan’s leading corporations in the healthcare segment
OBS specializes in international partnerships and fostering strategic alliances with reputed international firms whose products touch the lives and well being of people around the world
OBS provides full range of high quality professional services including clinical research, manufacturing, marketing, sales and distribution of pharmaceutical & consumer healthcare products
It is currently ranked 11th pharmaceutical company out of 700+ multinational and local companies in Pakistan
Strong presence in Pakistan, Afghanistan and Sri Lanka and in process of expansion to CIS Countries, Myanmar, Cambodia and Africa
Annual Group Sales Turnover of ~ US$ 85million
OBS Group Financial Highlights
(PKR mn)
2012
2013
2014
2015
2016E
Turnover
2,143
2,629
6,433
7,997
8,697
PBT
347
218
965
942
2,096
Total Assets
2,535
3,071
13,001
16,922
17,230
Equity
541
664
4,388
4,978
6,338
Areas of Expertise
Anti-infectives
Cardiology
CNS
Diabetes & Metabolic
Disorders
Gastroenterology
Ophthalmology
Respiratory
Women Health (Infertility, HRT & Contraception)
Vaccines

4. OBS Journey 2006 2007 2008 2009 2010 2014 2015 2016 Sales Revenue
PKR 350mn
2016 E
~ PKR 8.7 bn
Market Ranking
58th
11th
OBS HEALTHCARE
Dedicated for Organon legacy products
Formerly a subsidiary of NV Organon, the Netherlands
OBS PAKISTAN
Dedicated for MSD legacy products
Formerly a subsidiary of Merck & Co. Inc, USA
OBS SRI LANKA
A strategic alliance with Merck & Co. Inc. USA to acquire part of their portfolio for Sri Lanka Operations
AGP
Acquired in July 2014
International alliances include Eli Lilly, GSK, UCB and Alcon
ASPIN PHARMA
Acquisition of Janssen Brands and Johnson & Johnson Pakistan Facility.
Acquired in July 2015
SANTEN PHARMA, JAPAN
A strategic alliance with Santen (a global ophthalmic company) to represent them in Pakistan
Launch in May 2016
2006
2007
2008
2009
2010
2014
2015
2016
OBS PHARMA
Incorporation of OBS Pharma (Pvt.) Ltd, a sister concern focusing on branded generic and consumer health products
AKLIMA CLINICAL RESEARCH
A joint venture with Norton Audits Inc. USA for clinical research services and trial management in Pakistan
SCHERING PLOUGH PAKISTAN
Dedicated for Schering Plough legacy products
Formerly a subsidiary of Schering Plough USA
MYLAN (USA)
A strategic alliance with MYLAN USA to promote their complete portfolio in Pakistan
Launched in March 2016

5. Top International Brands in OBS Group
xxx
xxx
AGPL
xxx
xxx
xxx
44 Brands
44 Brands
OBS Pakistan
11 Brands
11 Brands
Aspin Pharma
OBS Health Care

6. OBS Group
AGP Limited
Pharmaceutical Industry of Pakistan

7. OBS acquired AGP in July 2014
AGP Limited
The company began operations in 1989 and has performed by leaps & bounds ever since
AGP’s business comes from both the manufacturing, sale and marketing of products of international repute whilst marketing & manufacturing under its own brand
OBS acquired AGP in July 2014
AGP’s product portfolio comprises of over 110 variants of 44 products, which contributed to a top line of PKR 3.7 billion in 2015
International Affiliations
Historic Overview – Company Financials
(PKR Millions)
2012
2013
2014
2015
2016E
Turnover
2,699
3,110
3,338
3,748
4,250
Gross Profit
1,573
1,811
1,906
2,162
2,444
Profit after Tax
686
809
873
643
1,003
Total Assets
1,380
1,887
2,192
8,351
8,436
Equity
1,068
1,555
1,248
3,190
4,193
PKR
3.58
58%
24%
Gross Profit
Margin
Net Profit
Margin
*Expected EPS
2016

8. AGP Product Portfolio
AGP’s Portfolio consists of 44 brands products including 8 star products
AGP pursues an aggressive product development strategy and has a robust product pipeline
3 new products were launched in 2015
6 new products have been launched in to be launched by end of Nov 2016
Agreement signed with Mylan in products launched in 2016
Product registration in Sri Lanka, Myanmar and Tajikistan in process
At least six new launches planned in 2017
AGP’s Product Portfolio is divided into 5 Main Business Units
GYNAE A
Gynae / Orthopedic / Antibiotic Products
GYNAE B
Gynae, Pain management / Anti-Spasmodic
PAEDS
Antibiotics/ Anti Asthmatic drugs for children
INTERNAL MEDICINE A
General physician products, Gastro Enterology Products, Antiallergens
INTERNAL MEDICINE B
General physician products, Broad-Spectrum Antibiotics & Antiallergens
Total Sales Volume
(PKR Millions)

9. OBS Group
AGP Limited
Pharmaceutical Industry of Pakistan

10. Pharmaceutical Industry of Pakistan
Industry Analysis
Sales
Exports
2014
2015
2016
2017f
2018f
Pharmaceutical sales, USD bn
2.35
2.63
3.0
3.42
3.90
Sales, % of GDP
0.99%
1.02%
1.12%
1.19%
1.25%
Sales, % of health expenditure
35.3%
34.8%
34.0%
33.0%
31.9%
Health spending, USD bn
6.48
7.06
7.59
8.17
8.83
USD 3bn
USD 200mn+
Market Share
The domestic Pakistan market demonstrates more than 14.2% compound annual growth over the last five years comparing favorably to international growth rates
Market Size
700+ registered companies, including 400 pharmaceutical manufacturing units; 25 multinationals
Top Market players
GSK, Abbott Laboratories, Getz , Sami, Searl, Sanofi Aventis ,Pfizer Laboratories, Novartis, Hilton, Ferozsons, OBS
Domestically produced drugs
Pain killers, anti-stress and anti-depressants, anti-infective, homeopathic
Imported products
Antibiotics, vaccines, analgesics, tranquillizers, drugs for treating cardiovascular diseases and cancer
Import markets
US, UK, Germany, Switzerland, Japan, Netherlands, France, China and Indonesia
Regulator
Drug Regulatory Authority of Pakistan
Regional Analysis
Approximate value - USD 2.3 billion
Average manufacturing growth in volume over the past 5 years – 6.73%
Over 700 registered pharmaceutical manufacturing units
400 are producing finished drugs
25 multinationals
Just 0.4% of the budget is allocated to healthcare
Private spending accounts for more than 75% of total healthcare expenditure
Local industry meets more than 80% of the demand
Drugs are manufactured under the strict quality standards & cannot be marketed without being registered
Pakistan imports over 90% of raw material used to manufacture drugs
Pricing is regulated by the Drug Regulatory Authority
Source: Pakistan Pharmaceutical Manufacturers’ Association, Pakistan Economic Survey
Regional Analysis (in USD)
Pakistan
India
Bangladesh
Total Pharmaceutical Market
3.0bn
21bn
1.5bn
Growth Rate
14%
20%
12%
International Ranking Value Wise 45 13 58
Pharmaceutical Companies
700
25,000
210
USFDA / MHRA Approved Plants
523 4
Pharmaceutical Exports
>160mn
>15,500mn
50mn
Raw Material (API) Supply to own country
30%
70%
15%
Source: IMS, Pakistan Pharmaceutical Manufacturers’ Association, Pakistan Economic Survey & BMI Research

11. Local Sector Performance
The pharma sector performed very well in the past 5 years and this growth is expected to continue going forward due to:
Increasing foreign investor interest in pharma stocks
Diversion of focus to Consumer Healthcare Business
Focus on exports/New product launches
Population growth/increased per capita spending on health
Valuations have improved significantly with the sector currently trading at a P/E multiple of 23.7
Stability of PKR vs. USD would help keep costs of raw materials low as most raw materials are imported
Players are looking to diversify into Nutrition and Diagnostics products segment & adding them into the product portfolio mix for better margins
Price Earnings Multiple
Avg
Price to Sales Multiple
Avg
Price to Book Multiple
Avg

12. Muhammad Kamran Mirza
Head - Investment Banking Group
JS Bank Limited
1st Floor - Shaheen Commercial Complex
Dr. Ziauddin Ahmed Road
Karachi-74200, Pakistan
URL:
UAN: (+92 21) 111-JS BANK ( )
Tel: (+92 21)
Muhammad Kamran Nasir
CEO
JS Global Capital Limited
6th Floor - Faysal House
Main Shahra-e-Faisal
Karachi, Pakistan
URL:
UAN: (+92 21)
Tel: (+92 21)