Multinationals sell plants, local companies step up: what the ownership shift means
Five multinationals divested local manufacturing over three years, while national companies now hold nearly 80% of the market.
In this article
Pakistan’s pharmaceutical industry has quietly changed hands. Plants built by multinationals are increasingly owned and run by Pakistani companies.
The exits
Health Minister Syed Mustafa Kamal told the National Assembly in November 2025 that five multinational companies had divested or exited local manufacturing over the previous three years, ProPakistani reported. He described it as a “strategic shift” rather than closures, saying the facilities continue under new ownership so supply is not disrupted.
- Pfizer: Lucky Core Industries completed the acquisition of assets from Pfizer Pakistan in September 2024.
- Bayer: its Lahore unit was transferred in 2023 to a local company, as part of Bayer’s global strategy.
- Sanofi and Novartis sites were also named. Lucky Core Industries disputed that it had divested its own pharma unit.
National companies lead the market
Retail data for FY26 show national companies with sales of Rs998.54 billion — nearly 80% of the market — growing 16.53%, while multinationals held 20% and grew 8.76%. National companies’ unit sales rose 2.98% while multinationals’ fell 6.16%.
What it means
| For | Implication |
|---|---|
| Local manufacturers | Larger plants and portfolios to run and upgrade |
| Suppliers | Purchasing decisions made locally rather than at a global head office |
| Investors | Established sites and brands change hands as companies reshape |
Why multinationals are reshaping
Global pharmaceutical companies regularly review where they make their products. Many have concentrated manufacturing in fewer, larger sites and moved towards specialised medicines and biologics, while selling or outsourcing the production of older, established brands. In Pakistan, companies have also pointed to local factors in past years, including price controls on established products, currency movements and the cost of importing raw materials. Selling a plant to a local company with lower overheads can keep a product on the market that would otherwise be discontinued.
What changes for a plant under new owners
- Decision-making moves closer. Investment, purchasing and product choices are made in Pakistan rather than in a regional or global office.
- Brands and know-how transfer. Buyers often acquire well-known brands and experienced staff along with the buildings, sometimes with supply or licensing agreements with the former owner.
- Standards must be kept up. Plants built to multinational standards are a strong base, but equipment ages and requirements rise. Serialisation, PIC/S-aligned documentation and data integrity all need investment.
- Portfolios widen. New owners can use spare capacity for their own products or for contract manufacturing.
Is this good for patients?
Continuity of supply is the first test, and the minister’s point was that production continues under new ownership. The second is quality: whether new owners maintain and improve the standards they inherit. With DRAP moving inspections onto the PIC/S standard, the regulatory pressure to do so is increasing. The third is choice and price: a market led by competitive national companies can keep prices down, provided quality is assured.
What suppliers should know
For suppliers, a change of owner can open doors. Purchasing that was once tied to global framework contracts may now be open to local and regional suppliers, and new owners often review equipment, service contracts and materials as they integrate a plant. Equally, they will expect suppliers who can document quality, support validation and provide reliable local service.
What to watch
Inherited plants often need investment to keep up with rising standards such as PIC/S-aligned GMP and serialisation. That is where equipment and service suppliers come in — many of them at Pharma Asia 2026.
