KUALA LUMPUR: Pharmaniaga Bhd's stock rose 1.5 sen to end at 39.5 sen at midday today after announcing specific steps to optimise business operations and exit Practise Note 17 (PN17) status.

A total of 10.66 million shares were traded.

  The company's stock has lost 16 sen, or 28.18 per cent, so far this year. At the time of writing, it had a market value of RM517.53 million.

Pharmaniaga was classified as a PN17 company in February this year after posting a net loss of RM664.39 million in the fourth quarter of FY2022, and having to make provisions of RM552.3 million for unsold COVID-19 vaccines in stock.

  Its revenue fell to RM3.51 billion from RM4.81 billion in FY2021.

  A PN17 company is a listed company that does not have a core business or has failed to meet the minimum capital or equity requirements and shareholders' funds.

Executive committee chairman Ahmad Shahredzuan Mohd Shariff said in a statement yesterday that the company will find synergies across all of its business groups and optimise its entire business operations and costs.

  He said the group has placed great emphasis on expanding its 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.

  He said the group anticipates that talks with the Health Ministry (MoH) to renew the concession will end "very soon", in addition to identifying synergies across each of its business units.

  "We have been engaged in positive dialogue with the MoH, and building upon our exceptional 28-year track record in logistics and distribution, we will continue to provide exceptional service.

  "In the private generic drug market, Pharmaniaga commands a significant market share of close to 10 per cent. Our projected growth in the private market for the year 2023 stands at an impressive 20 per cent, surpassing the annual market growth rate of seven per cent" he said.

  On the international front, Ahmad Shahredzuan said that PT Millenium Pharmacon International Tbk (MPI), the group's logistics and distribution arm in Indonesia, is aiming for double digit sales, compared to last year's success.

He said that as part of MPI's overall expansion strategy, Pharmaniaga will open new branches in 2023 to further boost the logistics and distribution capabilities in the region.

https://www.nst.com.my/business/2023/06/919591/pharmaniaga-marginally-after-announcing-plans-exit-pn17-status