Pharmaniaga ... July 09

It aims to aggressively expand its market overseas, especially in the South-East Asian region, in the next three to five years to grow the business.

The pharmaceutical market in Malaysia is valued at about RM3.5bil, of which RM1.3bil to RM1.5bil is derived from the government sector.

The ratio for patented versus generic pharmaceutical products is 70:30. Pharmaniaga had a 15% share of the local generic pharmaceutical market last year (2008).

The pharmaceutical group currently exports to 30 countries but only about 12 to 15 countries are active with orders every six months. Exports contributed only about 1% to group revenue of RM1.3bil for the financial year ended Dec 31 (FY08).

Pharmaniaga has started the ball rolling on its overseas expansion plans. It already has one foot in Indonesia via its 55% subsidiary, distribution company PT Millennium Pharmacon International Tbk, and a sales and marketing office in Vietnam, which will be a platform for it to penetrate the Indochina market.

Pharmaniaga also plans to tap specific developed markets, such as the United States and Europe, via its new RM110mil manufacturing plant in Puchong, Selangor. The plant, which is not operational yet, will focus on small volume injectable products and should obtain certification for good manufacturing practice by the first quarter of 2010. However, the Puchong plant will initially cater to the local market as Pharmaniaga has already secured a contract of less than RM10mil from the Government.

The group’s other plant in Bangi will focus on solid dosage form products, such as tablets and capsules, and currently manufactures about 58 active (regularly produced) products.

On its concession agreement expiring Nov 30 2009, Pharmaniaga was currently in talks with the Health Ministry and was confident of securing the concession again as “we have met the overall requirements set by the Government.”

The group holds a 15-year concession to supply and distribute pharmaceutical and medical products to hospitals and medical institutions under the ministry. Currently, Pharmaniaga only manufactures 6% or 37 of the 570 products under the approved product price list under the concession, while the rest are procured from 83 vendors.

Pharmaniaga recorded a 21.7% drop in net profit to RM14.5mil for the first quarter ended March 31 versus the previous corresponding period while revenue was marginally higher by 1.3% at RM313.7mil.

Related:
CCM/Pharmaniaga .. July 2008