While it's true that government will end concession with Pharma, it may also be true that the government can award to Pharma if is it deem to provide competitive price. Another important factor is supply chain which Pharma has vast experience with this.
I believe gov seeking to lower medical price and this could be a good way to do it. Pharma has been in the industry for many years so to wipe them off just like that, I don't think so.
There's a but though....
In terms of fundamental, Pharma debt-equity is of concern which is well not healthy. Also, the ROE over the years has been less than mediocre often between 1 - 3%. This is because despite high revenue returns, the margin for medicine is razor thin. So with the concessionaire pull out, you can expect the net margin will take another hit. To succeed, Pharma can't just concentrate of distribution chain alone but need to focus on generic medication to stay ahead.
So in view of both good and bad, you can pump or dump if you are the balls of King Kong. For Pappa, I will not touch this counter. If you want to be contrarian, you can go ahead and fight the tides. I don't like to fight tides anyway. I find it is easier to ride along with them :)
This is a spoon fed company. To me, its just a distribution channel for the health ministry, at best its a trading house. Now, no longer get the guaranteed concession, what is left is easy to guess. And all this while being spoon fed and i dun think they really know about medicine. Well they can go out buy a pharmaceutical company and then put their own label..sad...
Good luck finding cheaper drug logistic co to the whole malaysia and borneo. How many hospital/clinics to be delivered? (rivers, distance). The margin is already thin. As a matter of fact though most sales of pharma comes from this very low margin logistic arm...the bulk of its profits are from manufacturing and that is also the cheapest from many. Our gomen got more money to spend on for the sake of patience life and gamble on it? Yes please sell. I am buying
The name of the game is competitive advantage. Low cost provider and switching cost! Risk? Investing is risky but you may have to take some educated guess and have the nerve. Not for traders of course...
Ppl in the market will know only pharma can win back the open tender...they are too strong in term of logistics coverage...no other pharma company can give a fight...
1) However, to ensure that medical supplies and health services are not disrupted, Pharmaniaga's services will be extended until the Cabinet decides on the mechanism to manage the open tender.
2) Dzulkefly said that it would be presenting the matter to the Cabinet for it to decide on the mechanism for open tender, which is hoped to be ready by the first quarter of next year.
last but not least... Dang! DAng!! DANg!!! DANG!!!!
3) The existence of a concession company was the result of the privatisation initiative undertaken by Tun Dr Mahathir Mohamad in 1994. The privatisation involved the concessionaire taking over all the assets and manpower of the Government Medical Stores then under the Health Ministry, said Dr Salmah.
Wait for old horse! he say stop then stop... no one else can make the decision!
10 years ago when pharma at the end of its concession, the price went down, uem sold and bought by boustead...and then they develop the centralised drug inventory system (proprietary) that reduce wastage and efficient ordering, now same story again, even if pharma won another 5/10 years...it will go the same story each time. The key is whether they have delivered the job? I am in as i believe in its strength. Not for trader. Well what do i know? I just own 30k of pharma and buying...more. please sell
It seem some people just open their mouth to let something out, something without KNOWING the whole picture and setup, pity only the POOR RAAYAT will suffer. This also looks like a FAIL PROJET of MM 1994 or a fail decision of PH (Sorry before I forget the VIP VVIP AND VVVIP always goes to the SPECialist Ha ha ha
The privatisation involved the concessionaire taking over all the assets and manpower of the Government Medical Stores then under the Health Ministry, said Dr Salmah
it means...
I am you, you are me!
you now want to create another me/you? if so, then the new me/you will also need to taking over all the assets and manpower of the under me/you???!!!
or you want to absorb me into you again? if so, see next comment...
The existence of a concession company was the result of the privatisation initiative undertaken by Tun Dr Mahathir Mohamad in 1994
it means...
you denied a concession company... you denied old horse... directly... and mind you... the guy is not just live and kicking today...but doing as well as anyone of us... maybe better than some of us...
more importantly... that guy is your boss...
any right minded person will directly denied the boss???
Sorry can someone enlighten me if Pharma HAVE TAKEN OVER the MANPOWER and ASSETS during the initial STARTUP what will happen to the POOR civil staffs that was privatised ha aha reabsorb the old staffs ha ha
The fact that they can still make money with so thin margin makes them low cost provider. A competitive advantage, others are wellcome to bid but setting up networks to deliver drugs on time with all those hospitals using their own system to be integrated...will make them geleng kepala...it takes years to recoup those costs ....and then when time comes, bid again, until no one wins ahead and then problems creep up...usually a monopoly charge exorbitant premium. Not in the case of pharma...
In any low margin business, volume is the game. And malaysia is going to be an aging nation...we live longer but at the same time...lifestyle illnesses also increase, therefore, more demands...more drugs to be delivered on timely basis.
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
MQ Trader 881 views | 4 d ago
0:17
New IPO: An enterprise IT solutions provider that provides implementation services, maintenance, support and professional services, Vetece Holdings Bhd aims to list on the Ace Market!
MQ Trader 752 views | 8 d ago
0:17
New IPO: A manufacturing and trading of biomass fuel products, particularly PKS and wood pellets company, Elridge Energy Holdings Bhd aims to list on the Ace Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Wirajati
610 posts
Posted by Wirajati > 2019-10-31 16:57 | Report Abuse
Is it reflected yet on its performance? No
I am buying
...