Kathmandu: Quest Pharmaceuticals, one of Nepal’s leading drug manufacturers, has recorded a turnover of approximately Rs 1.37 billion during the first six months of the current fiscal year.
This performance follows a consistent growth trend over the past several years, with the company posting Rs 2.90 billion in the previous fiscal year, up from Rs 2.85 billion in 2024, Rs 2.54 billion in 2023, and Rs 2.32 billion in 2022. The steady rise in revenue highlights the company’s strengthening position in the domestic pharmaceutical market.
Founded in 1999, Quest Pharmaceuticals began its commercial journey by launching its first cardiovascular molecule, “Milod,” in 2001. Over the decades, it has evolved into a major industry player, now producing over 100 types of medicines across more than 25 therapeutic categories. While the company offers a wide range of general and specialized treatments, its core focus remains on high-demand segments such as cardiovascular health, diabetes, dermatology, and lipid-lowering medications.
To sustain its market leadership, the company has been aggressively investing in capital expenditure to boost production capacity. These investments are largely funded through internal cash flows supplemented by a conservative amount of external debt. Current strategic projects include the construction of an advanced Research and Development (R&D) centre in Kharipati, Bhaktapur, and the proposed establishment of a new, state-of-the-art production facility.
Recent credit rating reports suggest that while the massive capital expenditure required for the new production centre could strain the company’s financial profile in the medium term, the risk is mitigated by a phased implementation plan spanning the next four to five years. This gradual approach is expected to prevent sudden liquidity shocks. Currently, the company’s liquidity remains stable, with 53 per cent of its working capital limit still available for use. As of mid-January, the company maintained a working capital balance of 281 million NPR, providing a comfortable financial cushion for its ongoing operations.
The ownership of the company is distributed among 15 shareholders, with the core leadership consisting of four directors: Umesh Lal Shrestha, Prithvi Raj Bhandari, Uttam Kumar Shrestha, and Shailendra Prasad Verma. Together, these directors hold a 45% stake, while the remaining shares are held by their family members and other business associates. Reflecting its financial requirements, the company recently sought ratings for loans totalling Rs 1.532 billion, which includes Rs 802 million in long-term debt and Rs 730 million in short-term credit needs.
Quest Pharmaceuticals operates in a highly fragmented and competitive environment, characterized by the presence of over 50 domestic manufacturers. Despite the intense rivalry within the local industry, the company’s specialized focus on chronic disease management and its commitment to infrastructure expansion continue to distinguish it as a prominent leader in Nepal’s pharmaceutical landscape.
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