KUALA LUMPUR: Shares of Pharmaniga Bhd and Duopharma Biotech Bhd climbed in active trade on Wednesday as the companies sign agreement with the Government to supply Covid-19 vaccine.
Pharmaniaga, one of the top gainers on Bursa Malaysia this morning, rose 3.01%, or 15 sen to RM5.13. Duopharma added six sen to RM3.76.
Pharmaniaga said it would be supplying 12 million doses of Covid-19 vaccines developed by China’s Sinovac Life Sciences Co Ltd, while Duopharma said it would supply 6.4 million doses of Sputnik V developed by Russia’s Gamaleya Research Institute to the government.
Both companies yesterday said they had entered into a term sheet agreements to supply the Covid-19 vaccines to the Health Ministry.
Pharmaniaga said it would begin manufacturing Sinovac Covid-19 vaccines in February and will deliver the bottled vaccines to identified hospitals and other healthcare facilities nationwide by April 2021.
MIDF Research said it is making no changes to its FY20-21F earnings estimate on Pharmaniaga at this juncture.
It added that the agreement will not result in material change to Pharmaniaga’s earnings and earnings per share (EPS) for FY21.
“We are maintaining our target price at RM4.74 per share for now. Our TPis derived via pegging our unchanged FY21F EPS of 31.6sen to an unchanged target PER of 15.0x which is the average of its historical five-year rolling PER,” it said, adding that it is maintaining a neutral call with positive bias on Pharmaniaga.
Separately, Duopharma said the supply of 6.4 million doses of “Sputnik V” is subject to the vaccine being approved by the Drug Control Authority Malaysia through technical evaluation by the National Pharmaceutical Regulatory Agency.
Duopharma told Bursa Malaysia that it has signed two separate term sheet agreements for the project.
The first is with the Russian Direct Investment Fund (RDIF) to secure the 6.4 million doses of Sputnik V.
It also entered into a term sheet agreement with the Health Ministry to supply 6.4 million doses to vaccinate 3.2 million Malaysians.
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