Pharmaniaga is now a PN17 company

PETALING JAYA: Pharmaniaga Bhd has been classified as an affected listed issuer under Practice Note 17 (PN17) of the Main Market Listing Requirements of Bursa Malaysia.

In a filing with the stock exchange yesterday, the pharmaceutical company said it had triggered the PN17 criteria pursuant to its audited consolidated financial statements for the period ended Dec 31, 2022.

A PN17 company is a listed company that does not have a core business or has failed to meet the minimum capital or equity and companies’ shareholders’ funds.

Pharmaniaga said it will need to submit a regularisation plan to the Securities Commission Malaysia within 12 months if the plan will result in a significant change in the business direction or policy of the company.

It will also need to submit a regularisation plan to Bursa Malaysia if the plan will not result in a significant change in the business direction or policy of the company.

“As at the date of this announcement, the company is taking the necessary steps to address its PN17 status.

“The company is in the midst of formulating a plan to regularise its financial condition and the announcement on the same will be made in due course in accordance with the listing requirements”.

For the financial year ended Dec 31, 2022 (FY22), Pharmaniaga posted a net loss of RM607.3mil, or loss per share of 46.36 sen against a net profit of RM172.15mil, or 13.15 sen a year earlier.

Its revenue fell to RM3.51bil from RM4.81bil in FY21.

Due to the accounting treatment in accordance with the Malaysia Financial Reporting Standards requirements and Pharmaniaga’s good governance practice, the group had to provide for an amount of RM552.3mil on the stock of vaccines.

"This provision inevitably triggered the criteria of PN17 for Pharmaniaga," it said in a statement.

Addressing the matter in hands, Pharmaniaga is currently in focused talks with various parties, both local and overseas to purchase the vaccines. The group is optimistic of favourable outcomes from the negotiations.