KUALA LUMPUR (April 18): The Ministry of Health (MOH) will continue its concession agreement with Practice Note 17’s (PN17) Pharmaniaga Bhd for the provision of medicines and medical supplies to MOH facilities.
Health Minister Dr Zaliha Mustafa said that Pharmaniaga has been in a long term concession agreement with the MOH, hence, the ministry will continue the agreement with the pharmaceutical company.
“We (MOH and Pharmaniaga) are actually working closely — we have adopted a long (service) on the logistic matter with Pharmaniaga.
“So indeed we really need them (Pharmaniaga) and I think it is our responsibility under the government to try to help, and we have decided to continue our consensus with Pharmaniaga,” she told a press conference after attending a townhall meeting on Health White Paper at the central region on Tuesday (April 18).
Pharmaniaga’s wholly-owned subsidiary Pharmaniaga Logistics Sdn Bhd was initially granted a concession agreement to supply public health facilities with medicines and medical supplies by the MOH in 1994.
Its concession agreement with MoH was extended by six months last December until end-June to facilitate a new agreement.
When asked on the duration for the MOH to continue the concession agreement with Pharmaniaga, Dr Zaliha disclosed that the concession will continue “for another ten years”.
Pharmaniaga fell into PN17 status after it recorded negative equity following its largest ever quarterly net loss of RM664.39 million for the fourth quarter ended Dec 31, 2022 (4QFY22), from a net profit of RM85.47 million in 4QFY21, while revenue improved 21.2% to RM862.72 million.
Pharmaniaga is 52%-owned by Boustead Holdings Bhd, which in turn is 75.05%-owned by Lembaga Tabung Angkatan Tentera (LTAT). LTAT also has a direct 8.6% interest in Pharmaniaga.
LTAT is in the midst of taking Boustead private and has been mopping up shares of the latter in the open market after extending a voluntary takeover offer in March for Boustead shares it didn't own at 85.5 sen apiece. At the time the offer was extended, the armed forces pension fund held 59.42% in Boustead.
Pharmaniaga's share price closed six sen or 19.05% higher at 38 sen on Tuesday, its highest level since Feb 28. It saw 40.44 million shares traded, compared to 21.65 million on Monday (April 17), and its 200-day average of 38.75 million shares.
At the current share price, the pharmaceutical group has a market capitalisation of RM491.33 million.
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