Pharma will go beyond RM20 by next year with this business, 2m invested. Buy now or regret. Next week limit up.
We are positive on Pharmaniaga’s ability to take part in the Covid-19 vaccine fill and finish process. We feel that it has the capacity, capabilities and expertise. We keep our forecasts unchanged at this juncture, and will revisit when more clarity is given on the Covid-19 vaccines bottling process.
With more plans unveiled on its “vaccine foray”, coupled with strong sentiment on such plays, we raise our PE target from 18x (+1SD to 5 year mean) to 21.5x (+2SD). This raises our TP from RM4.95 to RM5.94. BUY rating maintained. Our TP is de rived from P/E target of 21.5x (+2SD above 5 year mean) pegged to mid FY21 EPS.
We attended Pharmaniaga’s briefing and the following are some key takeaways:
World’s first halal vaccine facility. Pharmaniaga’s journey to have the world’s first halal vaccine facility started back in 2018. It has visited and established partnership with vaccine producers from China, India, Russia and Thailand.
It aims to trade 12 general vaccines, and already have 1 product registered. The first floor of their Puchong plant will be made to cater for the vaccine facility (12 general vaccines; 5 fill and finish process and 6 trading vaccines) is expected to be ready in 2022.
3 phases of execution. Pharmaniaga is focused on going into the above in 3 phases. Firstly, it will venture into this via registration and trading; registering the vaccine would approximately takes 2 years and then only it can be traded. Secondly, fill and finish in new prefilled syringes lines (RM100m investment), of which the vaccine will be put into individual syringes instead of in a bottle, and product development of new vaccines.
For the latter, we understand that a new patented vaccine is projected to be ready in 2024. Lastly, a new vaccine manufacturing plant (RM100m investment) is expected to be ready in 2026.
Covid-19 vaccine fill and finish. In Malaysia, there are not many companies with the capabilities to do a “fill and finish” process. To have a facility and getting it to be up and running would take about 3 years. The registration process itself would take about 2 years to obtain.
Pharmaniaga’s Small Volume Injectable (SVI) plant is suitable for Covid-19 fill and finish for inactivated/killed vaccine. This facility is a sterile GMP approved plant and the only SVI plant in Malaysia with EU GMP. For Pharmaniaga, the plan is that when the government has gotten a vaccine, Pharmaniaga would repurpose its ground floor plant located in Puchong to be able to do the fill and finish process; this plant has the required capacity and capabilities. While some changes are needed to be done (i.e. additional attachment equipment), it will roughly cost less than RM2m, and the period to implement the changes is fast (c.1 month).
Current projected capacity from this is 10m doses per month on 10 doses vial (1 bottle having 10 doses). Pharmaniaga is of the opinion that the earliest bottling process for Covid19 vaccine would be in 1Q21. While the government has yet to announce the participation of Pharmaniaga in Covid-19 vaccine, we are positive that Pharmaniaga will be the ideal choice, having all the capabilities intact.
Looking ahead. Pharmaniaga intends to increase its presence in the private sector by increasing its product range, especially in the over-the-counter segment. To remain competitive, Pharmaniaga is looking into therapeutics, vaccines, and insulins.
Forecast. We keep our forecasts at this juncture, as the fill and finish process will not start immediately and there are still multiple things that needs to be panned out first, most importantly, an actual discovery of the vaccine.
Maintain BUY, TP: RM5.94. With more plans unveiled on its “vaccine foray”, coupled with strong sentiment on such plays, we raise our PE target from 18x (+1SD to 5 year mean) to 21.5x (+2SD). This raises our TP from RM4.95 to RM5.94. We maintain BUY. Our TP is derived from P/E target of 21.5x (+2SD above 5 year mean) pegged to mid FY21 EPS.
Source: Hong Leong Investment Bank Research - 25 Aug 2020
Top rated: RM25 within 18 months. Trust Khairy kao kao
All hands on deck to re-purpose existing plants for Covid-19 vaccine, says Pharmaniaga Author: savemalaysia | Publish date: Sun, 23 Aug 2020, 11:30 AM
KUALA LUMPUR, Aug 23 — Pharmaniaga Bhd says it is all geared up to make the necessary changes to its existing plants that would enable them to undertake fill and finish process for Covid-19 vaccine as soon as it is developed, its acting managing director, Mohamed Iqbal Abdul Rahman said.
He said the group had presented to the National Science Council its plan, capacity and capabilities for the purpose.
“This is part of the short-term plan of the group in addressing the urgent need for the Covid-19 vaccine,” he told Bernama in a written reply when asked on Pharmaniaga’s future plans.
Last month, Science, Technology and Innovation Minister Khairy Jamaluddin said the government had agreed that the facilities owned by Duopharma Biotech Bhd and Pharmaniaga be used for bottling the vaccine.
Khairy reportedly explained that the two companies were chosen as both are government-linked — Duopharma is owned by Permodalan Nasional Bhd and Pharmaniaga is owned by Boustead Holdings Bhd — and currently have unused capacity that can be directed towards this purpose.
Going forward, Mohamed Iqbal said Pharmaniaga, Malaysia’s largest pharmaceutical company, was on track to establish the world’s first halal vaccine facility, targeted for completion by 2022.
“In 2018, Pharmaniaga announced plans to establish a vaccine plant. We have since completed conducting the necessary due diligence and secured partnerships with international vaccine producers,” he said.
In addition, Pharmaniaga has long-term plans for sustainable growth and has put in place six strategic thrusts to drive the company to the next level.
As a government-linked company, Pharmaniaga is committed to continuously provide the highest standard of service to allow the Ministry of Health to focus on healthcare delivery, with Pharmaniaga as its preferred logistics partner.
“Although we have secured a logistics and distribution contract until November 2024, we are hopeful that our proven track record, ready infrastructure, integrated information technology, and most importantly, experienced human capital, will position us well to secure a potential extension following this period,” he said.
Mohammed Iqbal said Pharmaniaga also benefitted significantly from the group’s digitalisation efforts which have taken place over the past few years, ensuring minimal disruptions during the Movement Control Order (MCO) period.
In an effort to augment the group, he said Pharmaniaga will also be expanding its product portfolio with new products to be manufactured in-house, as well as strengthen its agency and distributorship segment and expand its one-stop centre facilitation.
“With over 300 alliances and more than 6,000 private hospitals, general practitioners and pharmacy outlets, Pharmaniaga has a very strong base to build on and further strengthen customer loyalty,” he added.
Additionally, in an effort to strengthen human capital, the group will continue to equip its employees with the necessary training and support to comply with all regulatory and statutory requirements.
“With a workforce of more than 3,500, our human capital is our most valuable asset. We are also committed to prioritising local employment, with a workforce comprising 99.5 per cent locals, supported by specialised international talent mainly in our research and development team.
“We are also adapting to the ‘new normal’ post- Covid-19 and harnessing positive learnings from the MCO. Online meetings and work from home have given us the opportunity to ‘do more for less’ as we have less travelling cost and more productive time,” he added.
For the six-month financial period ended June 30, 2020, Pharmaniaga recorded a net profit of RM32.38 million as compared with RM28.89 million year-on-year (y-o-y), while revenue jumped to RM1.47 billion versus RM1.39 billion registered in the same period in 2019.
He said despite recording revenue growth y-o-y, the group’s Indonesian operations have been loss-making over the years, although there has been some slight improvement.
During the second quarter of 2020 especially, the Indonesia division recorded a deficit of RM2 million, mainly due to higher finance costs as a result of the delay in payments from government hospitals, currently affecting Indonesia’s healthcare industry.
“The division was further impacted by the republic’s large-scale social restrictions in response to the Covid-19 pandemic, which resulted in limited access to doctors, clinics, pharmacies and hospitals,” it said in a filing to Bursa Malaysia.
Mohamed Iqbal said to mitigate this, the company is seeking solutions to manage the delays in payment by government hospitals for the distribution business.
As for the manufacturing facility in Bandung, Pharmaniaga
Pls read carefully, this is current report by the Edge Markets, Reporting time :20:28, 11August 2020
On the current situation by Boustead, Malaysia on the Court actions on totally 5 previous Board of Directors (including the previous MD) for BREACHING THEIR FIDUCIARY OBLIGATIONS AS DIRECTORS UNDER COMPANIES ACT 1965 SUM INVOLVED RM 35.37 millions
======================================= Remarks (i) sum involved is RM 35.37millions and not small amount (ii) AND NOT OLD REPORT thru WhatsApp, etc (iii) To be honest, some of my close investors have interest to invest in the pharmaceutical stocks, and upon ongoing researches manage to find the skeletons in the closet.
Sincerely,
When some of the investors in this forum requested for further information, the necessary replies as per their request. Likely, when the management of some rubber gloves stocks run into some BAD malpractices, the necessary reports will be issued, too.
I don't have pharma but i know many supporters are here. so i cannot talk bad about vaccine, not good to talk bad. So i choose to support you all. Please buy as many as possible if you trust all vaccine companies.
Don't miss the boat. The boat is about to start sailing. Time to sailang before it start sailing.
Read the positive on vaccine enough. The negative info may be fake. Don't believe negative comments. We need to selectively choosing what we believe only.
Sinovac's coronavirus vaccine candidate approved for emergency use in China — source Roxanne Liu / Reuters
August 29, 2020 19:54 pm +08
State media Xinhua reported late on Friday that two vaccine candidates were approved in June for the emergency use program launched in July, without identifying the specific products.
Officially, China has given little details on which vaccine candidates have been given to high-risk people under the emergency use programme and how many people have been vaccinated.
In June, prior to the emergency use programme, employees at state firms travelling overseas were allowed to take one of the two vaccines being developed by CNBG, state media Global Times reported. China's military had also approved the use of CanSino Biologics' vaccine candidate.
Seven vaccines against the coronavirus are in final trial stages around the world, and four of them are from China.
But no vaccine has yet passed the final stage of trials proving it is safe and effective — conditions usually required to be met to get regulatory approval for mass use. Covid-19 has killed over 800,000 people worldwide.
Since vaccine in China have started used in June/July, and now no reported negative report, then potential to find successful vaccine become probility much higher.
Still better than buy gloves (gloves risk chase high, sell low - masuk penthouse). Pharmaceutical has limited downward risks and market worries compared to gloves (IB haircut, windfall tax, increasing competitions, vaccine news, FDA queries, unsustainable future earnings etc etc.
Still remember the next day market reaction on Putin's Russian Sputnik V announcement?
Waterfall on gloves.
What about announcement by US, China, Germany, Japan, France, UK, Singapore, India?
Anyone have any idea how the vaccine would be applied to public once available? Is it compulsory everyone to receive jab even healthy one? how many jab suffices when there were mutation detected?
Suprnoob, it depends on government policy. Preferably the whole population of Malaysia get vaccinated but the supply won't be able to meet the demand initially. So as a start maybe the health care personnel will get the vaccine first, followed by those above 50 to 60 years old (because they are more serious if infected with covid), then only all other groups. At least 2 jabs are needed to boost the immunity. The vaccines likely can cover for mutant strains as well. Please refer to: Vaccine candidates likely remain effective against mutations, By Leng Shumei and Hu Yuwei Source: Global Times Published: 2020/8/17
@pantor looks like there is still big gray area how the govt policy going to be implemented which I opined would strongly pivots pharma's vaccine revenue stream profitability and sustainability. I reckon govt will position it as rather strategic in seedling greater economic growth in the long run thus initial profit would be low.
Ok u don trust solution but never don trust cansino covid19 vaccine mah!
Csnsino is the best vaccine u can find mah...!!
Fully endorsed by China Military loh...!!
China will never endanger its military people mah...!!
Cansino Vaccine is the best mah..!!
SOLUTION IS THE CANSINO DISTRIBUTOR MAH...!!
Posted by Hafidz Pisex > Aug 30, 2020 11:26 AM | Report Abuse
Both pharma and dpharma is good but never solution. Solution is a joke. Even thestar said so.
Covid-19 impact on business
A STANDING joke among listed company officials these days is to say in jest their company is getting involved in some kind of Covid-19 related business. It doesn’t matter how serious, big or small the venture is, what’s important is making that announcement will likely lead to a surge in the said company’s share price.
BODOH LOH...U THINK SOLUTION DIRECTORS DARE SIMPLY SAY AH ??
THEY WANT TO GO TO JAIL & MAKAN CURRY RICE EVERYDAY MEH ?
SURELY MOU...MUST BE REAL BARU CAKAP MAH...!!
Posted by Hafidz Pisex > Aug 30, 2020 11:53 AM | Report Abuse
I dare you to post announcement from cansino itself here. Saying they work with solution in malaysia. Not the other way around. If u have that i follow u.
CHINA MILITARY PEOPLE ARE HONEST, HONORABLE & LOYAL PEOPLE MAH..!!
THEY ARE VERY INTELLIGENT & BRIGHTEST PEOPLE U CAN TRUST MAH...!!
CANSINO VACCINE IS THE BEST & SOLUTION THEIR DISTRIBUTOR MAH..!!
Posted by 817065 > Aug 30, 2020 12:13 PM | Report Abuse
Let's be honest to ourselves. Say if a covid-19 vaccine is available in Malaysia today, will you want to be vaccinated since it's a new vaccine with unknown long term effects? Would you want to take the risk?
Posted by President > Aug 30, 2020 5:16 PM | Report Abuse
i like stokraider to spam here, base on record, since stockraider spam here from RM4.3. pharma price has spark to RM6.6 if with the present of stockraider, means a sign of pharma going uptrend further, and vice versa
someone said pakatan might win back at sabah, chances 50 -50 east malaysia may still support pakatan, but west malaysian already change. next PRU, BN will win back.
now PN rules,bursa is live, during LGE as finance minister, bursa like death rat, whom willing to see LGE return to be finance minister again?
Chinese pharmaceutical maker in talks for early Covid-19 vaccine approval
(Aug 29): Chinese pharmaceutical maker CanSino Biologics Inc is in talks with several countries to allow its coronavirus vaccine that’s in development to be used on small groups of people before large-scale safety and effectiveness trials are completed, the Wall Street Journal reported.
The company is speaking to Pakistan, several Latin America countries and some developed nations, the paper said, citing Pierre Morgon, senior vice president for international business at CanSino. Doses could be administered to health-care and other frontline workers if emergency approval is granted, the report said, adding that none have agreed to allow it yet.
The Chinese military has permitted the use of the CanSino vaccine before the completion of large-scale final testing, the report said, citing a company filing.
NOTE : Doses could be administered to health-care and other frontline workers if emergency approval is granted, the report said, adding that none have agreed to allow it yet.
Vaccine usually use a weakened state of the virus so trigger reaction from immune system to create antibody to kill the virus however, if the vaccine has different strain of the virus it can be fatal as it put 2 different strain of COVID-19 and causes more complication to the infected!
So vaccine may worsen the condition of infected...
Sinovac's coronavirus vaccine candidate approved for emergency use in China — source Roxanne Liu / Reuters
August 29, 2020 19:54 pm +08
State media Xinhua reported late on Friday that two vaccine candidates were approved in June for the emergency use program launched in July, without identifying the specific products.
Officially, China has given little details on which vaccine candidates have been given to high-risk people under the emergency use programme and how many people have been vaccinated.
In June, prior to the emergency use programme, employees at state firms travelling overseas were allowed to take one of the two vaccines being developed by CNBG, state media Global Times reported. China's military had also approved the use of CanSino Biologics' vaccine candidate.
Seven vaccines against the coronavirus are in final trial stages around the world, and four of them are from China.
But no vaccine has yet passed the final stage of trials proving it is safe and effective — conditions usually required to be met to get regulatory approval for mass use. Covid-19 has killed over 800,000 people worldwide.
NOTE:But no vaccine has yet passed the final stage of trials proving it is safe and effective — conditions usually required to be met to get regulatory approval for mass use. Covid-19 has killed over 800,000 people worldwide.
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Posted by Yu_and_Mee > 2020-08-29 21:42 | Report Abuse
Pharma will go beyond RM20 by next year with this business, 2m invested. Buy now or regret.
Next week limit up.
We are positive on Pharmaniaga’s ability to take part in the Covid-19 vaccine fill and finish process. We feel that it has the capacity, capabilities and expertise. We keep our forecasts unchanged at this juncture, and will revisit when more clarity is given on the Covid-19 vaccines bottling process.
With more plans unveiled on its “vaccine foray”, coupled with strong sentiment on such plays, we raise our PE target from 18x (+1SD to 5 year mean) to 21.5x (+2SD). This raises our TP from RM4.95 to RM5.94. BUY rating maintained. Our TP is de rived from P/E target of 21.5x (+2SD above 5 year mean) pegged to mid FY21 EPS.
We attended Pharmaniaga’s briefing and the following are some key takeaways:
World’s first halal vaccine facility. Pharmaniaga’s journey to have the world’s first halal vaccine facility started back in 2018. It has visited and established partnership with vaccine producers from China, India, Russia and Thailand.
It aims to trade 12 general vaccines, and already have 1 product registered. The first floor of their Puchong plant will be made to cater for the vaccine facility (12 general vaccines; 5 fill and finish process and 6 trading vaccines) is expected to be ready in 2022.
3 phases of execution. Pharmaniaga is focused on going into the above in 3 phases. Firstly, it will venture into this via registration and trading; registering the vaccine would approximately takes 2 years and then only it can be traded. Secondly, fill and finish in new prefilled syringes lines (RM100m investment), of which the vaccine will be put into individual syringes instead of in a bottle, and product development of new vaccines.
For the latter, we understand that a new patented vaccine is projected to be ready in 2024. Lastly, a new vaccine manufacturing plant (RM100m investment) is expected to be ready in 2026.
Covid-19 vaccine fill and finish. In Malaysia, there are not many companies with the capabilities to do a “fill and finish” process. To have a facility and getting it to be up and running would take about 3 years. The registration process itself would take about 2 years to obtain.
Pharmaniaga’s Small Volume Injectable (SVI) plant is suitable for Covid-19 fill and finish for inactivated/killed vaccine. This facility is a sterile GMP approved plant and the only SVI plant in Malaysia with EU GMP. For Pharmaniaga, the plan is that when the government has gotten a vaccine, Pharmaniaga would repurpose its ground floor plant located in Puchong to be able to do the fill and finish process; this plant has the required capacity and capabilities. While some changes are needed to be done (i.e. additional attachment equipment), it will roughly cost less than RM2m, and the period to implement the changes is fast (c.1 month).
Current projected capacity from this is 10m doses per month on 10 doses vial (1 bottle having 10 doses). Pharmaniaga is of the opinion that the earliest bottling process for Covid19 vaccine would be in 1Q21. While the government has yet to announce the participation of Pharmaniaga in Covid-19 vaccine, we are positive that Pharmaniaga will be the ideal choice, having all the capabilities intact.
Looking ahead. Pharmaniaga intends to increase its presence in the private sector by increasing its product range, especially in the over-the-counter segment. To remain competitive, Pharmaniaga is looking into therapeutics, vaccines, and insulins.
Forecast. We keep our forecasts at this juncture, as the fill and finish process will not start immediately and there are still multiple things that needs to be panned out first, most importantly, an actual discovery of the vaccine.
Maintain BUY, TP: RM5.94. With more plans unveiled on its “vaccine foray”, coupled with strong sentiment on such plays, we raise our PE target from 18x (+1SD to 5 year mean) to 21.5x (+2SD). This raises our TP from RM4.95 to RM5.94. We maintain BUY. Our TP is derived from P/E target of 21.5x (+2SD above 5 year mean) pegged to mid FY21 EPS.
Source: Hong Leong Investment Bank Research - 25 Aug 2020