Pharmaniaga unveils grand plan to exit from PN17 status

 

Pharmaniaga slipped into PN17 status in February after it posted a RM664.39 million net loss in Q4 FY2022, and had to make provisions amounting to RM552.3 million on unsold Covid-19 vaccines in stock.

PETALING JAYA: Pharmaniaga Bhd has outlined a strategic plan to address the challenges presented by its Practice Note 17 (PN17) status with a strong focus on financial recalibration and a resolute commitment to overcome obstacles.

The group said it has charted a path towards a “resilient recovery” across its business segments.

Its executive committee chairman Ahmad Shahredzuan Mohd Shariff said its plan encompasses targeted initiatives aimed at streamlining business activities, optimising overall business operations and costs, as well as finding synergies across all business units.

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“The group has placed emphasis on expanding our capabilities in the field of biopharmaceuticals, with a focus on the establishment of state-of-the-art manufacturing facilities for vaccines and insulin to address the increasing needs in these therapeutic areas.

“We are targeting vaccines primarily under the National Immunisation Programme. The work is progressing well and is scheduled for commercialisation in 2025 for vaccines and 2026 for insulin,” he said in a statement in conjunction with its 25th annual general meeting today.

He said the group is also expecting the negotiation process for its concession renewal to be concluded soon and has been engaged in positive discussions with the Health Ministry.

Pharmaniaga was classified as a PN17 company in February this year after it posted a net loss of RM664.39 million in the fourth quarter of FY2022, and had to make provisions amounting to RM552.3 million on unsold Covid-19 vaccines in stock.

On a separate issue, Ahmad Shahredzuan said the group has close to a 10% share in the private generic drugs market, which is significant.

“Our projected growth in the private market for 2023 stands at an impressive 20%, surpassing the annual market growth rate of 7%,” he said.

For its international footprint, he said the group’s logistics and distribution arm in Indonesia PT Millenium Pharmacon International Tbk is aiming at double digits sales compared to the last year’s achievement.

Chairman Izaddeen Daud said moving forward, the company’s goal is to diversify their business.

“To achieve this, we are continuously exploring non-concession healthcare opportunities and expanding our logistics business,” he said. - FMT