Think back to June 2023. It might seem like less than two years ago but in terms of the stock exchange, it feels like a lifetime. The index fell below the threshold of 40,000 points and there was a sense that the monotony would not break anytime soon. But then things did change and a rally was sparked. The rally that began in June of 2023 seems to be going strong still as the index is touching levels close to 120,000 in March of 2025. There are few indications that this rally has ended and there are experts who say that 125,000 is not far away either.
With the index tripling within two years, it is no wonder that the stocks listed in the market have also seen their prices increase manifolds. There are market performers which were languishing in the bear market but saw their prices increase steadily with the index. One such sector was the pharmaceutical industry which saw many of its scrips increase in value.
Companies like Liven Pharmaceuticals saw their share price jump by almost 20 times from Rs 9 in December of 2023 to Rs 220. The lower end of the spectrum saw returns of more than 200% as well in line with the increase in the index.Â
Pharmaceutical owed some of the increase to the fact that drug pricing was taken away from the purview of the Drug Regulatory Authority of Pakistan (DRAP) and handed over to the companies. This was a policy shift specifically for non essential medications which were being controlled and approved by DRAP in the past.
With the control of pricing being handed over to the companies, they were able to increase their revenues with the same levels of costs boosting their profits. The financials of many of the companies confirms this as they have seen their earnings jump upwards compared to last year. Better profitability meant better earnings and an increase in their stock price. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
