KUALA LUMPUR: Hovid Bhd forecasts that its earnings per share (EPS) will fall 15.1% if the revocation of its manufacturing licences lasts until the end of March.
The pharmaceutical company, explaining the expected financial impact of the Health Ministry’s action against it, told Bursa Malaysia that its EPS would drop by 0.33 sen, from 2.18 sen to 1.85 sen. That equates to a total earnings drop of RM2.705mil.
Hovid said turnover per share would contract from 23.06 sen to 18.43 sen (-4.63 sen or -20.1%) while net assets per share would slip from 24.61 sen to 24.28 sen (-0.33 sen or -1.3%).
These estimates are based on the group’s audited results for the financial year ended June 30, 2016, and Hovid’s issued 819.66 million shares as at Dec 31, 2016.
Hovid is making the following assumptions:
* Hovid submits corrective actions to National Pharmaceutical Regulatory Authority (NPRA) by end January;
* It invites NPRA to audit its facilities and Current Good Manufacturing Practice (cGMP) immediately thereafter;
* The authority re-issues the manufacturing licences by end-March; and
* Hovid resumes production activities by April 1.
Hovid said the estimated timelines might change depending on the outcome of the audit by NPRA in due course.
“Hovid will continue to provide periodic updates should there be any material developments,” it said.
Hovid last week issued a recall of a batch of its Ternolol hypertension tablets. On Monday this week, the Health Ministry’s Pharmaceutical Services Division (PSD) informed it that its manufacturing licences had been revoked.
In its statement to the exchange on Monday, Hovid said its distribution subsidiaries in Malaysia, Hong Kong and the Philippines would continue to market and sell the existing stocks held by them respectively.
Hovid shares fell 4.5 sen, or 13%, to close at 30 sen on Tuesday, with 113.12 million shares changing hands.
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