PHARMANIAGA SHARES SLIGHTLY LOWER IN EARLY TRADE

KUALA LUMPUR, Nov 22  -- Shares of Pharmaniaga Bhd were marginally lower in the early trading session despite recording a better third quarter financial performance ended Sept 30, 2021 (Q3FY21).

As at 10.30am, the integrated pharmaceutical group’s share price inched down half-a-sen to 84 sen, with 3.89 million units done.

In a filing with Bursa Malaysia on Friday, Pharmaniaga announced that its net profit widened to RM49.83 million from RM1.44 million registered in the same quarter a year ago.

The group’s revenue for the quarter also jumped to RM2.13 billion from RM624.80 million, attributed to the positive growth across the group's concession, non-concession and Indonesian businesses.

The non-concession business was a key driver due to the sales of the Sinovac COVID-19 vaccine to the Ministry of Health (MOH), as well as the private sector.

Kenanga Research said despite recording bumper profits in Q3FY21, it did not expect sequential net profit growth in the fourth quarter since most of the vaccine deliveries were completed in the third quarter.

It added that the majority of Sinovac recipients received their second dose between June and September. As such, the requirement for a booster shot could potentially start from December onwards.

The research firm said Pharmaniaga’s earnings visibility could come from the possibility that Sinovac vaccines were approved as booster shots and for adolescent use, likely in the first half of 2022.

“We are factoring in concession extension beyond the interim extended concession period from Dec 1, 2019 to Dec 31, 2021 for procurement of drugs to ensure no supply chain disruption in the supply and distribution of medicines nationwide.

“This is in view of Pharmaniaga’s infrastructure setup via computerised system such as Pharmacy Information System (PHIS) which is an integral role in ensuring the distribution of drugs to patients and effective management of stock levels,” Kenanga Research said in a research note today. 

It noted that Pharmaniaga also highlighted that a series of discussions and negotiations for the renewal of the concession has been carried out and the outcome is very positive.

-- BERNAMA