MIDF Research said while it was positive on the endeavour, the feasibility of the partnership and strategies would not be visible until at least next year.
PETALING JAYA: Pharmaniaga Bhd
’s new venture involving the production of halal medicines is expected to bear fruit earliest, by next year.
MIDF Research said while it was positive on the endeavour, the feasibility of the partnership and strategies would not be visible until at least next year.
“We make no changes to our earnings estimates for financial year 2022 (FY22) to FY23, thus maintaining our target price at 91 sen for Pharmaniaga.
“The development of the halal anti-coagulant would not be finalised until approval by the National Pharmaceutical Regulatory Agency by 2024, with the risk of a fallout still an immediate possibility,” it said in a report.
Pharmaniaga said last week that it would commercialise Malaysia’s halal ovine (sheep and goat) anti-coagulant (blood clot thinner) drug in Malaysia by 2024.
The venture is a collaboration with China’s Ronnsi Pharma Co Ltd.
MIDF in its report noted that Covid-19 had added to the need for anti-coagulants in a bid to prevent severe complications from thromboembolism.
“Additionally, ischaemic heart diseases had seen a significant increase by 24% from 2015 to 2020, adding to the need for anti-blood clot agent to ease heart surgery and minimise complication,” it said.
It also noted that the anti-coagulant market is expected to reach eight million dosages by 2026. There are big opportunities in halal market, it said.
“Anti-coagulants are used for invasive surgeries, as well as in preventive treatment for cardiovascular and cerebrovascular diseases.
“As most anti-coagulants in the market currently is derived from swine, the demand for halal anti-coagulants is expected to rise.”
It said the venture will position Pharmaniaga as the exclusive registration holder, distributor and manufacturer, with Ronnsi as the patent owner and developer.
It will also contribute to Malaysia’s potential as the first distributor and manufacturer of halal blood anti-coagulants, MIDF said.
In its report, MIDF pointed out that Ronnsi was founded in 2012 and is a pharma company focusing on complex drug research and development, with its main products being Heparin, Enoxaparin and Dalteparin salts.
“Ronnsi is the first developer of non-porcine-based enoxaparin, which has passed all approvals and is currently commercialised globally as an ovine-based anti-coagulant.
“Through this expertise, the group has collaborated with various international companies including from Indonesia, Pakistan, the United States and Italy.”
Still, there are threats to this partnership including pricing pressures and increased competition, MIDF said in its risk analysis.
It said that on the whole, it remained positive on the group’s strength due to its robust portfolio, despite the ongoing risk of increasing inflationary pressure on raw materials used in the industry.
