Zulkarnain: The group is finalising the logistics and distribution contract extension agreement with the MoH, slated to be completed by the end of 2022. (Photo by Low Yen Yeing/The Edge)

KUALA LUMPUR (June 13): Pharmaniaga Bhd’s new logistics and distribution concession agreement with the Ministry of Health (MoH) will be completed by the end of the year, said its group managing director Datuk Zulkarnain Md Eusope.

“The group is finalising the logistics and distribution contract extension agreement with the MoH, slated to be completed by the end of 2022,” he said during a media briefing on Pharmaniaga’s financial performance on Monday (June 13).

Previously, Pharmaniaga had said that the agreement was slated for completion in the third quarter of the year. The current concession agreement it has with the ministry is set to expire by the end of this year.

Pharmaniaga deputy managing director Mohamed Iqbal Abdul Rahman added that the company has positioned itself to pursue more opportunities under the agreement. He said Pharmaniaga aims to expand on the variety of products it supplies to government hospitals under the new agreement.

“We are now pursuing more opportunities. If we are delivering 100 products to a government hospital, if we deliver another 20 other products, it does not cost as much.

“So now we are pursuing more opportunities, working with more players to be able to distribute products from multiple suppliers to multiple clients as well,” he said.

Mohamed Iqbal went on to say that as Pharmaniaga eyes these opportunities, the company has also set its sights on potential mergers and acquisitions.

However, he did not disclose further details on these plans.

“We are also looking at potential mergers and acquisitions. We have not finalised anything yet, [but] we are working on a few and once we have some new development, then we will make the necessary announcement,” he said.

He added that Pharmaniaga expects a revenue of approximately RM1.5 billion and a growth of 2% per annum from the concession agreement if it is positive, while local distribution is to grow by “double-digit” moving forward.

“Unless there is a merger and acquisition, then we will [redo] our numbers,” he added.

At market close on Monday, shares in Pharmaniaga slipped 2.5 sen or 3.9% to 61.5 sen, giving the company a market capitalisation of RM805.62 million.