In 2023, Pakistan’s pharmaceutical industry grappled with significant economic pressures. Soaring inflation, a steep currency devaluation, and shrinking profit margins created an environment where many companies found it difficult to survive. Amidst these challenges, however, Highnoon Laboratories Ltd emerged as a standout performer, defying industry trends with remarkable resilience and ambition.
Founded in 1984 in Lahore, Highnoon has grown from a modest local enterprise into one of Pakistan’s most reliable healthcare brands. Achieving an impressive 22.8% year-over-year revenue growth in 2023, reaching PKR 19.4 billion while maintaining earnings at PKR 2.4 billion (PKR 45/share). These results are particularly impressive in a year when the overall earnings of listed pharmaceutical companies in Pakistan fell by a staggering 42%.
Source: IQVIA Report
Over the years, the company has solidified its reputation as a trusted partner for healthcare, an investor favourite, and a consistent market performer. This achievement is rooted in Highnoon’s strategic agility. Its legacy brands like Ulsanic, Combivair, and Triforge continue to drive consistent demand, while its portfolio expansion has allowed it to tap into unmet needs in therapeutic categories. With a 10-year CAGR (Compound Annual Growth Rate) of 20%, the company has consistently outpaced the industry’s growth trajectory.
Now, with its sights set on international expansion, Highnoon is strategically diversifying its revenue streams to sustain and elevate its position.
Expanding Horizons
Pakistan’s pharmaceutical exports reached $341 million in 2023-24, a fraction of India’s $28 billion. Despite this disparity, a former chairman of the Pakistan Pharmaceutical Manufacturers’ Association (PPMA) stated that the country has the potential to grow exports to $3 billion within five years if supported by favorable policies. Highnoon is already contributing to this effort, steadily increasing its share of export revenue.
The company’s export revenue share has increased from approximately 4% in 2019 to around 6% in 2023, slightly ahead of industry hovering between 4%to 5% during this period. While this growth aligns with broader industry trends, it underscores Highnoon’s commitment to expanding its global footprint. The company now plans to accelerate this momentumand channel checks indicate that the export share proportion in the company’s revenue is expected to reach around 8% in 2024, with higher targets set for the upcoming periods.
The company’s efforts were further recognized with the Pakistan Pharma Export Summit & Awards
(PESA 2023), a testament to its role in driving Pakistan’s pharmaceutical footprint globally.
Policy Shifts: A Catalyst for Growth
The government’s historic focus on stringent price controls hindered growth and drove multinationals out of Pakistan. Companies like Merck, Roche, and Johnson & Johnson exited due to unsustainable pricing policies. However, recent revisions in the pricing framework, particularly for non-essential drugs, have given companies like Highnoon a competitive edge.
Highnoon stands out as one of the few companies whose share of non-essential drugs exceeds 50%, alongside peers like AGP, Abbott, and Haleon. According to IQVIA data, Highnoon’s unit growth is significantly higher than the industry average, indicating that while many companies have capitalized on price increases under the new drug policy, Highnoon has largely focused on driving growth through volume rather than price adjustments. This strategy leaves the company well positioned to continue benefiting from the policy shift.
BoldAspirations
With aspirations to rank among Pakistan’s top five pharmaceutical companies by 2027, Highnoon’s vision is both ambitious and achievable. The company plans to build on its legacy through portfolio diversification, strategic international expansion, and innovation-driven growth. By balancing its rich heritage with a forward-looking approach, Highnoon is shaping a future defined by sustainable success.
Recent accolades, including being recognized four times in the past five years by Forbes Asia’s Best Under a Billion, highlight the company’s commitment to excellence. With a unique blend of legacy and leadership, Highnoon is not just aiming for the future—it is setting the pace for the pharmaceutical industry in Pakistan.
Company’s take on Compliance and Ethical Practices
In an industry often scrutinized for legal and ethical challenges, Highnoon has made regulatory compliance and ethical standards central to its operations. The company’s leadership goes beyond business growth, ensuring adherence to all regulations and setting a benchmark for corporate integrity.
Highnoon on its Way to Enriching Life
From its humble beginnings in Lahore to its consistent growth, Highnoon has turned challenges into opportunities. The company is steadily advancing toward solidifying its position within the pharmaceutical landscape. By blending a rich legacy with forward-thinking leadership, Highnoon continues to shape the future of healthcare, quietly yet confidently contributing to the broader industry’s evolution.
