Pharmaniaga quarterly performance improves
PETALING JAYA: Pharmaniaga Bhd 's net profit for the first quarter ended March 31, 2025 (1Q25) rose to RM29.58mil from RM25.65mil in the previous corresponding quarter, while revenue during the period grew to RM1.1bil, compared to RM965mil in the previous quarter.
In a statement, the pharmaceutical group said the 9.4% increase in revenue was mainly supported by the manufacturing division that contributes 65% to the group's profit.
Pharmaniaga's Indonesian division, however, recorded lower earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter under review due to the weakening of the rupiah against the ringgit.
'Excluding the impact of currency translation, the Ebitda showed an increase of 1.6%, driven by higher revenue from products of existing principals and additional sales generated from the opening of two new branches in February 2024 and one branch in October 2024,' the group said.
Moving forward, the group added that it will continue the implementation of its regularisation plan to exit its Practice Note 17 status following shareholders' approval of resolutions.
'With these strategic initiatives in motion, Pharmaniaga remains focused on delivering its growth targets for 2025 and reinforcing its market position across core business segments,' it noted.
As for Indonesia, the group will continue to strengthen its logistics network and manufacturing capabilities.
'Renovation of its central warehouse in Bekasi is progressing as planned and is expected to improve operational efficiency upon completion by 4Q25.
'The group has also commenced contract manufacturing activities, with additional projects in the pipeline under contract development manufacturing organisation arrangements.'
Pharmaniaga managing director Zulkifli Jafar said the group was making significant progress in expanding its non-concession government business.
'During the quarter, we were awarded two major Health Ministry tenders for the supply of high-value specialty injectable medicines, Secukinumab and Enoxaparin Sodium with a combined contract value of RM97.5mil over three years,' added Zulkifli.
Furthermore, he said that the group secured a RM139mil contract to supply dialysis solutions for the Social Security Organisation through 2029.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Sapura Energy's final push
KUALA LUMPUR: Sapura Energy Bhd –soon to be renamed Vantris Energy Bhd – is calling on shareholders to support its high-stakes regularisation plan at its EGM on July 30, marking one of its final milestone in its multi-year effort to exit Practice Note 17 (PN17) status. Its chief executive officer (CEO) Muhammad Zamri Jusoh told StarBiz that the group has done 'the heavy lifting' with its lenders and even secured a white knight investor, leaving shareholder approval as the last piece of the puzzle. 'We've gone so far into this journey. The lenders now believe this company is worth restructuring. Having that much interest and confidence in us speaks volumes about the company,' said Zamri, who was appointed CEO in January this year. 'If shareholders support the plan, they'll be able to hold on to value. If they don't, the alternative is liquidation.' Zamri, previously helmed the now-divested SapuraOMV Upstream Sdn Bhd, said shareholders will vote on four resolutions at the EGM. This includes a special resolution to cancel RM11.85bil in share capital – a 99.99% reduction – followed by a 20-to-1 share consolidation. This move is to clear out accumulated losses, clean up the capital base and prepare for fresh equity issuance. The other resolution is on debt restructuring, which aims to slash Sapura's borrowings from RM10.8bil to RM5.6bill, saving an estimated RM521.2mil in annual interest – equivalent to more than 60% of total interest costs. According to chief financial officer Ganesh Gunaratnam, the group's annual interest cost is about RM800mil now, down from close to RM200mil in the first quarter alone. 'Even though the business is generating earnings before interest, tax, depreciation and amortisation (Ebitda), that interest load is not sustainable. 'Post-restructuring, once interest costs come down, the path to profitability becomes clearer,' Ganesh said. The debt restructuring plan involves multiple components with about RM784mil owed to unsecured creditors will be written off. Meanwhile, around RM2.25bil will be settled through the proceeds from the divestment of SapuraOMV. To settle the remaining dues, creditors will receive RM1.77bil worth of redeemable convertible unsecured Islamic debt securities (RCUIDS), and RM1.37bil in new shares, effectively swapping debt for equity. Another RM5.23bil will be retained as 'sustainable debt', with repayments stretched over time and tied to future project cash flows. On top of that, Malaysia Development Holding Sdn Bhd (MDH) – a vehicle under the Minister of Finance (Inc) – will inject up to RM1.1bil via redeemable convertible loan stocks (RCLS), with a coupon rate of between 2% and 4%. These funds are earmarked specifically for paying debts to Malaysian oil and gas service vendors. MDH will become a strategic investor with over 33% shareholding upon full conversion of the RCLS and will seek exemption from making a general offer, subject to shareholder approval. While Ganesh addressed the dilution of shareholding, he explained that 'it's about owning a smaller slice of a much larger, deleveraged cake. If the company performs well, the overall value to shareholders improves.' On the company's proposed name change to Vantris Energy Bhd, Zamri said this reflects the culmination of a broader transformation rather than a pivot. 'If you look at our journey, the reset really began in 2022. That's when the major shift happened and since then, we've been gradually implementing changes in how we operate and how we see the business evolving,' he said. 'The name change isn't the start – it's a reflection of everything we've done to get here.' ''Van' comes from 'vanguard', meaning to lead from the front. 'Tris' stands for the power of three – our three business segments, three guiding principles, and three core values. Together, these define the way we operate.' Sapura Energy, which has long operated in engineering and construction (E&C), operations and maintenance (O&M), and drilling, is recalibrating how it runs each division. For E&C, the focus has shifted to transportation and installation jobs, which are mostly reimbursable or day-rate contracts. 'These jobs are less risky and capital-intensive compared to engineering, procurement, construction, installation and commissioning (EPCIC) contracts, which require large upfront commitments,' Zamri said. Drilling remains a strong contributor, with nine of 11 rigs in operation. 'Drilling has always been a high-yield, cash-intensive business — it's all about utilisation. The recent contracts we've signed came with much-improved day rates.' The O&M segment, meanwhile, has also seen a turnaround, with Ebitda surging to RM144mil in FY25 from RM23mil in the previous year. 'It's a steady business. Last year, it turned the corner — Ebitda grew more than six times. Today, they're actually growing.' Sapura Energy's target is to grow the O&M segment into a billion-ringgit revenue contributor, with gradual expansion across South-East Asia. Over the years, Zamri said the company has shifted its strategic focus towards the Eastern Hemisphere in a bid to de-risk its operations and build on regional familiarity. 'Our concentration now — both in the bid book and order book — is very heavily skewed towards the Eastern Hemisphere. This was a conscious decision we made in the past couple of years. We're essentially hunkering down and focusing on geographies we know well, and where we've been actively operating,' he said. As at April 30, Sapura Energy's order book stood at RM7.9bil, with 78% or RM6.2bil from the Eastern Hemisphere. Of the total orderbook, 49% is from the drilling segment, followed by E&C at 28%, and O&M at 23%. These figures exclude RM4.8bil in orderbook under its joint ventures (JVs) and associates, particularly the Seabras Sapura JV in Brazil with Paratus Energy Services Ltd, where Sapura Energy holds a 50% stake. Zamri said the order book would be progressively recognised with 40% slated for FY26, 22% in FY27, and the remainder in FY28 and beyond. 'That JV has always been healthy and continues to be a very significant contributor to the group. While we only recognise our share of profit, they remain an important part of our overall portfolio,' he added. On tenderbook, Zamri said the group's active bids currently total RM29.9bil, with 81% or RM24.1bil also concentrated in the Eastern Hemisphere. 'Despite the challenges we face — limited working capital, fundraising constraints — our order book has consistently stayed above RM6bil (excluding JVs) over the past five years. This remains a viable and sustainable business,' he said. For the first quarter ended April 30, 2025 (1Q26), Sapura Energy's topline dropped to RM801.37mil from RM1.18bil in 1Q25. Bottomline slipped into the red, recording a net loss of RM477.96mil from a net profit of RM82.13mil in the previous corresponding quarter. Zamri said Sapura Energy's first quarter was marked by a typically slow period, impacted by seasonal and structural factors. 'One of the challenges is that clients are only just starting their business plans for the year, so contract awards have been slow. We're also coming out of the monsoon season, which limits mobilisation and offshore activity,' he said. He added that a project in Angola had also weighed on performance due to a mismatch between cost and revenue. 'We're making progress. By progress, I mean we are spending money. Some variation orders have yet to be formalised, and we're in active discussions with the client to reflect those changes.' Sapura Energy has no plans to re-enter the exploration and production (E&P) space in the near term, despite Zamri's own E&P background. Instead, the company is eyeing two adjacencies – asset decommissioning — through its Kita Solutions JV — and renewable energy, particularly engineering services for carbon capture, utilisation and storage (CCUS). Addressing the oil price cycle, Zamri noted that Sapura is less sensitive to short-term swings. 'Our clients make decisions based on long-term oil price scenarios. Investment will continue because energy demand continues to grow.' Operationally, Zamri said the company now focuses on discipline and margin preservation over chasing revenue growth. 'We're no longer aiming to be a giant like before,' Zamri said. 'We're taking baby steps. It's now a margin game, not just top line.' 'Can we grow back to the giant we were before? The real question is: do we want to?' he added. Chief restructuring officer Andy Chew Seng Heng acknowledged the role of the corporate debt restructuring committee (CDRC) in securing a balanced deal. 'Through CDRC mediation, we had a bigger voice to sell our story. In the end, figures speak for themselves — in liquidation, lenders would've gotten less than 30%. With this plan, they're getting well over 60%, plus equity, 'Chew said. Ganesh added if that scenario [liquidation] happens, the shareholder basically gets nothing. Concluding the interview, Zamri underscored the importance of shareholder backing, noting that it would reinforce the company's ability to move forward with greater confidence. 'Please, stand up at the EGM and vote in favour of the plan. The stronger the support, the stronger we move forward.'
New Straits Times
20 hours ago
- New Straits Times
Govt to hire more contract doctors, fill over 4,000 healthcare vacancies
KUALA LUMPUR: The Health Ministry is working to fill over 4,352 positions at healthcare facilities nationwide — particularly for contract doctors — by the end of this year, Prime Minister Datuk Seri Anwar Ibrahim said. He said the government had increased the number of posts for doctors and medical officers to ensure the people receive the best possible healthcare services. Anwar, who is also Finance Minister, said the country's strong economic growth has enabled various initiatives aimed at improving people's livelihoods. He said Malaysia's economy remains on a strong and convincing path, as reflected not only by domestic performance but also by international recognition. "The ringgit's value reflects growing confidence, having strengthened by over five per cent against the US dollar as of mid-year. "The ringgit currently stands at RM4.23, placing it among the top five performing Asian currencies this year. "Gross Domestic Product (GDP) growth for the first quarter stood at 4.4 per cent, and based on early estimates, the second quarter is expected to reach 4.5 per cent," he said in a nationally televised address today. In his address, Anwar announced a series of initiatives aimed at easing the rising cost of living, calling it an "extraordinary tribute" to Malaysians and a reflection of the Madani government's commitment to public welfare. They include Anwar added that the country's economic recovery is also being recognised globally. "Malaysia climbed 11 spots to 23rd place in the International Institute for Management Development (IMD) World Competitiveness Ranking 2025. "Last year, we recorded the highest approved investments in history at RM384 billion — a 17 per cent increase from 2023 — and this figure is expected to rise further this year," he said.
Focus Malaysia
20 hours ago
- Focus Malaysia
Southeast Asia pharma market set to outgrow global average
SOUTHASIA Asia (SEA) presents a substantial future prospect for the pharmaceutical market. Its projected growth rate significantly outpaces the global average and other major established markets. As of calendar year 2024 (CY24), global total market size for pharmaceuticals is estimated at USD1.5 tri. In comparison, SEA's total market size is estimated at USD27 bil. The significant growth for SEA indicates that ASEAN is a prime growth engine for the global pharmaceutical industry. This makes it an attractive destination for investment and market expansion. The Philippines and Malaysia show steady growth in a biosimilar export potential, reaching USD 111 mil and USD 70 mil respectively by 2027. Malaysia's growth, though robust, is relatively smaller in absolute terms compared to Thailand, Vietnam, and Indonesia. However, companies like Duopharma and Pharmaniaga are actively developing Halal-certified biosimilars. Overall, biosimilars is an untapped potential due to increasing healthcare demands and cost pressure. 'We believe that investing in local manufacturing of biosimilars can open avenues for SEA countries to export,' said MBSB Research. Countries that prioritise and invest in local biosimilar production are likely to become stronger exporters in this field. This aligns with the broader trends of high pharmaceutical market growth in SEA driven by demographics, NCDs, and the increasing sophistication of healthcare systems, all of which necessitate tailored and creative market strategies. Malaysia's pharmaceutical sector boasts a strong and strategically recognized local manufacturing base that significantly contributes to medicine security, especially for generics and essential medicines. While Malaysia demonstrates capabilities in exporting to highly regulated markets like the USA, it remains heavily reliant on imports for patented drugs, biologics, vaccines, and key APIs. The main challenge for Malaysia lies in bridging this gap by further boosting local R&D, attracting more sophisticated manufacturing capabilities, and strengthening its position in the global pharmaceutical value chain beyond just generics. 79% of total volume of generic medicines and 47% of items listed in National Essential Medicines List (NEML) are locally produced. However, most drugs, notably patented medicaments, immunoglobulins, human vaccines and insulins, are still dependent on imports. Malaysia consistently shows widening trade deficit underscores Malaysia's high reliance on imported pharmaceuticals. While local production is strong in generics, the country still depends heavily on foreign sources for innovative, patented, and specialised medicines. This reinforces the government's strategic focus on local manufacturing and technology transfer to enhance medicine security and reduce import dependency in the long run. The overall trend in the regional and local pharmaceutical market suggests that both domestic and foreign investors will see growing opportunities in Malaysia. The 51% FDI / 49% DDI ratio suggests a healthy balance between local commitment, and global capital and expertise. FDI indicates that Malaysia is highly attractive to foreign pharmaceutical companies, bringing in capital, technology, and global best practices, while DDI signifies robust local entrepreneurship and investment from Malaysian companies, demonstrating confidence in the domestic market and capabilities. We opine that the untapped drug manufacturing ecosystem will continue to follow the megatrend of new innovative drugs – including biologics, biosimilars and cell & gene therapy drugs – and open more opportunities for Malaysia to be a major healthcare hub in the region. While direct pharmaceutical exports from Malaysia to the US might face immediate headwinds from tariffs, the broader impact on Malaysia's healthcare subsector could come from indirect effects on global pharmaceutical supply chains and procurement costs. This would affect the affordability and availability of medicines within Malaysia for all citizens and healthcare providers. The Malaysian government and industry players are already responding by prioritizing supply chain diversification and exploring domestic production enhancements to mitigate these risks. Meanwhile, we believe a multi-pronged approach involving government action, industry adaptation, and consumer awareness will be crucial. Overall, we maintain positive on the healthcare sector. The pharmaceutical market is fundamentally driven by robust demographic trends, which naturally increases the demand for healthcare services and medicines. —July 23, 2025 Main image: Daily Sabah
