KUALA LUMPUR: Financially troubled Pharmaniaga Berhad plans to place out 131 million new shares representing 10 per cent of total issued shares to raise gross proceeds of RM44 million for working capital purposes, confident that the Ministry of Health will renew its concession to provide medicine and medical supplies, by end of June 2023.

A  Practice Note 17 (PN17) company, Pharmaniaga has until February 2024 to submit its financial regularisation plan to Bursa Malaysia Securities. 

The integrated pharmaceutical company in a filing with the stock exchange said it is optimistic with its future prospects amid its strategic plan to recover from the PN17 classification of which the group is currently formulating the regularisation plans with its appointed advisers. 

"Alongside the financial rejuvenation efforts, Pharmaniaga aims to strengthen its presence within the public sector. As the final stage of negotiation with the Ministry of Health for concession renewal nears completion, Pharmaniaga anticipates concluding the agreement by the end of June 2023. The group remains committed to leverage on its experience and expertise to continue providing excellent services and timely delivery of drugs and non-drugs products to government facilities throughout the country. 

Aside from biopharmaceuticals, Pharmaniaga intends to intensify its research and development (R&D) activities to formulate new high-value pharmaceutical products.

 Currently, the group has 101 new products in its 5-year product development pipeline, which includes, amongst others, cardiovascular system products, anti-diabetic products and supplement products.

The group's future plan and business strategy to intensify its R&D activities may enable the group to become one of the early market leaders of off-patent originator products and obtain early market share as well as further expand its product offerings.

Its share price closed unchanged at RM0.38 yesterday.

https://www.nst.com.my/business/2023/06/919875/pharmaniaga-plans-private-placement-hopes-secure-moh-concession-end-june