KUALA LUMPUR (Jan 4): Pharmaniaga Bhd's stock price surged as much as 13.2% to 43 sen on Thursday, following the pharmaceutical company's signing of a seven-year concession agreement with the Ministry of Health (MOH) for medical supply logistics services.

At market close, the stock pared some gains to trade at 40.5 sen, still up three sen or 8%, giving it a market valuation of RM583.7 million.

Trading volume stood at 11.17 million, almost triple its 200-day average volume of 4.19 million.

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Earlier on Thursday, Pharmaniaga Bhd's wholly-owned unit, Pharmaniaga Logistic Sdn Bhd (PLSB), entered into a concession agreement with MOH for medical supply logistics services.

The Practice Note 17 (PN17) company stated that the agreement would be effective retrospectively from July 1, 2023, and remain in force for seven years until June 30, 2030, subject to earlier termination.

Under the agreement, PLSB is granted the right and authority to undertake the procurement, storage, supply and delivery of medical products to public sector customers. PLSB is also authorised to carry out Pharmacy Information System services and construct or acquire four new warehouses for the storage of medical products.

The value of the contract, however, was not disclosed, as the pharmaceutical company said that the information provided under the agreement needs to be kept fully confidential.

The group reported a net loss of RM49.34 million for the third quarter ended Sept 30, 2023 (3QFY2023), more than double the RM13.99 million quarterly net loss from a year earlier, while quarterly revenue was marginally lower at RM885.49 million, compared to RM894.94 million last year. 

https://www.theedgemarkets.com/node/696186