Pharmaniaga charts strategic initiatives to exit PN17 status

PETALING JAYA: Pharmaniaga Bhd will focus on targeted initiatives aimed at streamlining business activities to exit its Practice Note 17 (PN17) status.

In a statement, executive committee chairman Ahmad Shahredzuan Mohd Shariff said the pharmaceutical company will optimise its overall business operations and costs, as well as finding synergies across all of its business units.

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“The group has placed great emphasis on expanding our capabilities in the field of biopharmaceuticals, with a focus on the establishment of state-of-the-art manufacturing facilities for vaccines and insulin to address the increasing needs in these therapeutic areas.

“We are targeting vaccines primarily under the National Immunisation Programme. The work is progressing well and is scheduled for commercialisation in 2025 for vaccines and 2026 for insulin,” he said.

Ahmad Shahredzuan said the group is also expecting negotiations with the Health Ministry (MoH) on the concession renewal to be concluded “very soon.”

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“We have been engaged in positive discussions with the MoH and building upon our exceptional 28-year track record in logistics and distribution, we will continue to provide exceptional service.

“Meanwhile in the private generic drugs market, Pharmaniaga commands a significant market share of close to 10%. Our projected growth in the private market for the year 2023 stands at an impressive 20%, surpassing the annual market growth rate of 7%,” he said.

On the global front, Ahmad Shahredzuan said the group’s logistics and distribution arm in Indonesia PT Millenium Pharmacon International Tbk (MPI) is aiming for double digits sales, compared with last year’s achievement.

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“As part of MPI’s comprehensive expansion strategy, we are establishing new branches in 2023 to further strengthen our logistics and distribution capabilities throughout the region.

“Meanwhile, our manufacturing arm in Bandung, Pt Errita Pharma will focus on expanding its market penetration, as well increasing production capacity,” he said.

Pharmaniaga was admitted to the PN17 category on Bursa Malaysia on Feb 27.

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