KUALA LUMPUR: Pharmaniaga Bhd expects to have a clear plan for its operations to get back to "normal" by year end.

The company which completed the first tranche of its private placement to third party investors last Friday, is planning a second tranche of 10 per cent to be taken up by the Armed Forces Fund Board (LTAT), subject to shareholders' approval.

Executive committee chairman Shahredzuan Mohd Shariff said the company will come up with its regularisation plan in the third quarter of this year and is progressing well.

"You have probably heard in the market whereby we have announced two private share placements.

"One is completed and another one is awaiting shareholders' approval. "We are confident and we are actually stabilising the company, almost everything is on the way up.

"By year end we have clear plan of at least (bringing) Pharmaniaga back to normal," he told reporters after the signing ceremony with China's Pharmaceutical Group Limited (CSPC).

In February, the pharmaceutical company was classified as a Practice Note 17 (PN17) company after posting a net loss of RM654.39 million in the fourth quarter of financial year 2022, and having to make provisions of RM552.3 million for unsold Covid-19 vaccine stock.

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.

Pharmaniaga has until February 2024 to submit its financial regularisation plan to Bursa Malaysia Securities.

Yesterday, Pharmaniaga's subsidiary Pharmaniaga LifeScience Sdn Bhd (PLS) inked a memorandum of understanding (MoU) with CSPC Ouyi Pharmaceutical Co. Ltd. to enhance the production of CSPC's biopharmaceutical portfolio, focusing on its advanced mRNA vaccines over the next two years.

Shahredzuan said the MoU strengthens the pre-existing relationship between Pharmaniaga and CSPC.

"Pharmaniaga currently acquires the Active Pharmaceutical Ingredient (API) for Azithromycin Dihydrate (antibiotics used to treat various bacterial infections) from CSPC OUYI," he said.

Under the MoU, the companies plan to venture into various pharmaceutical products within the realms of anti-infective, cardiovascular, neurology, gastroenterology, immunology, and pulmonary treatments.

https://www.nst.com.my/business/2023/07/935341/pharmaniaga-sees-clear-plan-end-year