Another director resigns from Pharmaniaga’s board

KUALA LUMPUR (May 8): Pharmaniaga Bhd has announced the resignation of an independent and non-executive director Datuk Dr Azhar Ahmad, effective June 10, 2023.

In a bourse filing, Pharmaniaga said Azhar Ahmad, 60, is vacating the position “to pursue other interests”.

Since the beginning of this year, Pharmaniaga has seen a slew of boardroom changes.

In January this year, Pharmaniaga announced the resignation of its non-independent and non-executive chairman Datuk Seri Zainal Abidin Mohd Rafique and independent and non-executive director Datuk Dr Najmil Faiz Mohamed Aris.

In the following month, Datuk Zulkarnain Md Eusope was redesignated as Pharmaniaga’s CEO — who later resigned from the position in March this year — while Zulkifli Jafar was redesignated as deputy CEO of Pharmaniaga.

Izaddeen Daud was redesignated as Pharmaniaga’s non-independent non-executive chairman, while Mohamed Iqbal Abdul Rahman was redesignated as Pharmaniaga’s chief operating officer. Dr Abdul Razak Ahmad was redesignated as a senior independent non-executive director.

Meanwhile, Boustead chief reinvention and strategy officer Ahmad Shahredzuan Mohd Shariff was appointed as Pharmaniaga’s new non-independent non-executive director.

Pharmaniaga slipped into Practice Note 17 company (PN 17) status on Feb 27, as it was affected by massive impairment of Covid-19 vaccines worth RM552.3 million.

The impairment of Covid-19 vaccines has dragged the group to post the largest ever quarterly net loss of RM664.39 million, or loss per share of 49.19 sen in the fourth quarter ended Dec 31, 2022 (4QFY2022).

This is in contrast to its net profit of RM85.48 million in 4QFY2021. The huge losses in 4QFY2022 were despite the 21.22% growth in quarterly revenue to RM862.72 million quarter-on-quarter.

Amid weaker quarterly earnings, Pharmaniaga sank into the red with a net loss of RM607.32 million for the financial year ended Dec 31, 2022 (FY2022), compared with RM172.15 million in the same period last year, as revenue contracted 27% to RM3.51 billion from RM4.81 billion.

Shares in Pharmaniga closed up one sen or 2.82% to 36.5 sen on Monday (May 8), giving the group a market capitalisation of RM478 million.

Year-to-date, the stock has fallen 33% from 54.5 sen on Jan 3 this year.