KUALA LUMPUR (Oct 10): Pharmaniaga Bhd (KL:PHARMA) on Friday said it has secured funding from the government for research and development (R&D) of vaccines through the National Vaccine Production Development and Strengthening Fund (DPVN).

The pharmaceutical group's wholly owned unit Pharmaniaga Lifescience Sdn Bhd (PLS) has entered into a fund agreement with the National Institutes of Biotechnology Malaysia on behalf of the Ministry of Science, Technology and Innovation (Mosti), it said in a filing to Bursa Malaysia.

The fund agreement is effective from March 1, 2024, until May 31, 2027, or subject to earlier termination. The Practice Note (PN17) company, however, did not mention the value of the fund.

DVPN provides grants to applicants with the objective of allowing Malaysia to achieve end-to-end local vaccine production capabilities underlined in the National Vaccine Development Roadmap (PPVN). Launched in November 2021, PPVN targeted Malaysia to be a vaccine production hub in 10 years.  

DVPN provides up to RM15 million grant for R&D, and RM30 million grant for clinical studies, with a funding period of three years, Mosti's website showed.

The fund, Pharmaniaga said, aims to support R&D projects under the DPVN programme, such as hexavalent vaccine development containing novel acellular pertussis and inactivated polio antigens project, and the development and technology transfer for Malaysia’s first pneumococcal conjugated vaccine project.

“PLS is granted the fund to carry out among others, the formulation, research, clinical and manufacturing activities to facilitate the execution of the project under DPVN programme,” it said.

Lembaga Tabung Angkatan Tentera (LTAT), or the Armed Forces Fund Board, is the largest shareholder in Pharmaniaga, with its wholly owned flagship Boustead Holdings Bhd holding a collective 54.9% stake in the company.

Last month, Pharmaniaga managing director Zulkifli Jafar said it is awaiting approval from Bursa Malaysia for its regularisation plan within this month to lift the group from its PN17 status.

The group slipped into PN17 status in February 2023 amid massive impairment after being unable to sell RM552.3 million worth of Covid-19 vaccines.

At the time of writing, shares of Pharmaniaga were traded half a sen or 1.3% lower at 38 sen, valuing the company at RM547.67 million.