Pharmaniaga to focus on intensive recovery plan

Pharmaniaga said it will implement rigorous fiscal discipline initiatives across its operations and investments as part of its recovery plan.

PETALING JAYA: Pharmaniaga Bhd expects a well-executed turnaround despite the current challenges as it continues to focus on its strategic positioning and potential.

In a filing with Bursa Malaysia, the Practice Note 17-classified pharmaceutical group said it is preparing a comprehensive regulation plan to be submitted to Bursa Malaysia by the third quarter of 2023, and expects the initiative to be finalised by the first quarter of next year.

Pharmaniaga added that the plan will be aimed at supporting its growth ambitions, reinforcing the capacity to continue investing in its core competencies, and expanding business operations.

In line with the demands of the industry, Pharmaniaga said it is on track with its world’s first halal vaccine as well as its insulin manufacturing plant, which are expected to be completed in 2024 and 2025, respectively.

“Upon production commercialisation, which is set to hit the market by 2025, Pharmaniaga is committed to expanding its reach in the Asean market.

“This expansion is backed by strengthening its product portfolio with a focus on biological drugs,” it said.

Furthermore, it said its growth trajectory remains positive.

This is particularly in the non-concession segment, private sector and Indonesian operations.

“These segments have seen considerable growth in these markets, underpinned by aggressive sales efforts and a well-diversified product portfolio,” it noted.

Moving forward, Pharmaniaga said it will implement rigorous fiscal discipline initiatives across its operations and investments as part of its recovery plan.

“Integral to this effort are our measures to clean up the book, strengthen the governance and internal processes to ensure transparency in all business activities,” Pharmaniaga chairman Izaddeen Daud said in a statement.

He added the company will be embarking on a comprehensive review of all its segments.

‘This will include restructuring non-performing business units, streamlining business activities, as well as optimisation of asset utilisation and manpower.

“These initiatives may lead to adverse one-off financial impact in the upcoming quarter,” Izaddeen noted.

Meanwhile, the group posted a net profit of RM1.96mil for the quarter ended June 30, 2023 compared to RM722,000 for the same quarter last year.

Revenue for the period increased 12% year-on-year (y-o-y) to RM848mil on the back of higher sales in both the non-concession segments, as well as its operations in Indonesia in the second quarter.

Its logistics and distribution division posted a profit before zakat and taxation (PBT) of RM29mil for the six months ended June 30, 2023, while its manufacturing division recorded a lower PBT of RM3.3mil.

The Indonesian division registered a higher PBT of RM5.3mil for the financial period under review, compared with RM3.6mil in the corresponding period last year as a result of higher revenue.

Bursa Malaysia recently rejected Pharmaniaga’s plan to undertake a second private placement on a standalone basis.

Pharmaniaga had submitted an appeal on Aug 1 on the decision.

The pharma company had aimed to issue up to 144.12 million new shares to raise additional capital to bridge its capital working requirements while devising a plan to regularise its financial status.