Citi Pharma Ltd. — M&A Activity 2026

May 6, 2026

Citi Pharma Limited

The General Manager
Pakistan Stock Exchange Limited
Stock Exchange Building
Stock Exchange Road
Karachi

May 06, 2026

SUBJECT: MATERIAL INFORMATION – PROPOSED ACQUISITION OF PAKHEIM INTERNATIONAL PHARMACEUTICALS (PRIVATE) LIMITED

Dear Sir,

In accordance with Section 96 of the Securities Act, 2015 and Clause 5.6.1 of the PSX Rule Book, we hereby convey the following material information:

The Board of Directors of the Company, on 06 May 2026, has approved a proposal for the acquisition of 100% shareholding of Pakheim International Pharmaceuticals (Private) Limited, along with its associated assets, licenses, and operations, for a consideration which is subject to the formal approval of concerned authorities.

Pakheim International Pharmaceuticals (Private) Limited is engaged in pharmaceutical manufacturing and holds multiple DRAP registered products with an established production facility. The proposed acquisition is intended to strengthen the Company’s manufacturing capacity, product portfolio, and market footprint, and is expected to generate operational synergies and long term strategic value.

The transaction shall be subject to, inter alia Completion of legal, financial, and tax due diligence and requisite approvals as required under the applicable laws and regulations. The consideration for the proposed transaction shall be financed through a combination of internal cash resources and available banking facilities.

The Company shall continue to keep the Exchange informed of any material developments in respect of the above transaction in due course.

You may please disseminate the above information to the TRE Certificate Holders of the Exchange accordingly.

For and on behalf of
Citi Pharma Limited

Company Secretary

CC:
Executive Director / HOD
Corporate Supervision Department
Securities and Exchange Commission of Pakistan

588 - Q, Johar Town, Lahore - Pakisatn
3KM. Head Balloki Road, Phool Nagar, District Kasur - Pakistan
Head Office: +92.42.35316587 - 90 | Factory: +92.49.4510189, +92.49.4513392
www.citipharma.com.pk
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Citi Pharma Limited

Citi Pharma Limited Announces Strategic Expansion through Acquisition

Lahore: Citi Pharma Limited (PSX: CPHL) and is pleased to announce a 100% acquisition of Pakheim International Pharmaceuticals Pvt Ltd as part of its ongoing growth and expansion strategy within the pharmaceutical sector. This strategic move reflects the company's commitment to strengthening its market position, enhancing operational capabilities, and expanding its presence across multiple business segments.

The acquired business currently generates an annual revenue of approximately PKR 500 million. Through this acquisition, Citi Pharma aims to leverage operational synergies, optimize production efficiencies, and significantly expand its footprint in both local and international markets.

The management of Citi Pharma has outlined an ambitious growth plan to scale this business, targeting a revenue increase to PKR 5 billion over the next five years. This growth will be driven through portfolio expansion, improved distribution networks, and continued investment in advanced manufacturing and product development.

The transaction has been structured with a flexible payment plan extending until 31st December 2026, whereby Citi Pharma will fulfill its financial commitments through its own operational cash flows, ensuring financial discipline and sustainability.

Furthermore, this acquisition is expected to strengthen Citi Pharma's API business, as the acquired operations will source APIs directly from Citi Pharma, contributing to increased API sales and improved capacity utilization.

In addition, the acquisition will provide Citi Pharma with a new brand identity within the trading segment, enabling the company to enhance its market presence, expand its customer base, and significantly increase its trading volumes and overall footprint.

Commenting on the development, the management stated that this strategic expansion aligns with Citi Pharma's long-term vision of becoming a leading pharmaceutical group in the region, while creating sustainable value for its shareholders.

This initiative further reinforces Citi Pharma's commitment to innovation, growth, and excellence.

588 - Q, Johar Town, Lahore - Pakisatn

3KM. Head Balloki Road, Phool Nagar, District Kasur - Pakistan

Head Office: +92.42.35316587 - 90 | Factory: +92.49.4510189, +92.49.4513392

www.citipharma.com.pk

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