Pharmaniaga gets earnings visibility with job extension

Pharmaniaga received a conditional letter for the continuation of medicines and medical supplies to the Health Ministry (MoH) facilities for a period of 10 years last week. --fotoBERNAMA (2021) HAK CIPTA TERPELIHARA

PETALING JAYA: The 10-year extension for the provision of medicines and medical supplies to the government will provide Pharmaniaga Bhd with earnings clarity over the longer term.

Additionally, this presents a secure business for the company as analysts noted that the thin margins, coupled with the substantial upfront capital expenditure required to set up the infrastructure for distribution would deter other new entrants from participating in the concession business.