Baltoro Growth Fund acquires a substantial minority stake in AGP Limited

August 2016

OBS Pakistan (Private) Limited, a pharmaceutical manufacturing company in Pakistan, and Baltoro Growth Fund (a Pakistan-focussed Private Equity Fund specializing in growth equity investments), today announced a deal under which Baltoro will acquire a substantial minority stake in AGP Limited, a subsidiary of OBS Pakistan.

This investment is part of Baltoro’s long-term strategy to expand its economic footprint by investing in high growth potential companies in Pakistan that have a meaningful impact on the commercial effectiveness of the economy.

Through Baltoro’s investment, AGP Limited will have access to the financial and operating resources necessary to expand rapidly in the pursuit of organic and inorganic growth with significant cost-saving opportunities that will, together, enhance the accessibility, affordability, and sustainability of pharmaceuticals in Pakistan.

The pharmaceutical industry in Pakistan is characterized by a high degree of under-penetration, where the average annual pharmaceutical expenditure per capital is USD 36, well below the global average of USD 1,061 per capita (China: USD 420, India: USD 75; Sri Lanka: USD 127; and Afghanistan: USD 57). Hence, the financial returns associated with investments in the industry are directly proportional with the value created for the larger community in terms of greater access to healthcare.

Furthermore, the pharmaceutical industry currently employs over 100,000 people in Pakistan, and Baltoro’s investment in the growth story of OBS Pakistan is expected to have a significant impact on new jobs created.

Baltoro’s investment in AGP marks the first investment under USAID’s Pakistan Private Investment Initiative which is expected to create the market for more private equity investors to join and provide capital to the hitherto neglected Small and Medium Enterprises of Pakistan.

About Baltoro Growth Fund: Baltoro is a Mauritius-based Private Equity Fund with a focus on growth equity investments in Pakistan. Baltoro was launched by Indus Basin Holding in January 2016 under the Pakistan Private Investment Initiative of USAID, with a matching investment from Bank Alfalah Limited.

About OBS Pakistan (Private) Limited: OBS is ranked among the top 20 pharmaceutical players amongst 695 companies with a strong presence in Pakistan and Sri Lanka. It is among the very few companies in Pakistan which has specialized in developing strategic business alliances with reputed international firms like Organon, Merck & Co. Inc. USA and Schering Plough by providing a full range of high-quality professional services encompassing manufacturing, marketing and sales of pharmaceutical and consumer health products.