Pharmaniaga’s new insulin, vaccine plant to raise FY2026 gross margin to 30%-35%
19 Sep 2024
Pharmaniaga Bhd’s newly launched biopharmaceutical plant is expected to lift its gross profit margin to about 30% to 35% for the financial year ending Dec 31, 2026 (FY2026).
The plant, located in Puchong and operated by Pharmaniaga Life Sciences Bhd, has an annual production capacity of up to 30 million doses of human insulin. It will also produce other essential biopharmaceuticals, including vaccines and biosimilars.
“For (human) insulin alone, we are looking for RM100 million per annum and we are also looking over about RM300 million per annum for vaccines. This is in terms of revenue,” Pharmaniaga managing director Zulkifli Jafar told reporters on Thursday.
“This new facility, which is the country’ first locally owned biopharmaceutical plant, will automatically lift up our revenue (going forward),” he said at a press conference after the launching of the new plant.
The RM300 million plant is part of Pharmaniaga’s move to improve its position as a leading pharmaceutical manufacturing company.
A huge part of the group’s business comprises government concession for pharmaceutical distribution. Its distribution segment has a gross margin of around 6% to 10%, Zulkifli told The Edge in a recent interview.
Pharmaniaga reported a net profit of RM28.44 million on revenue of RM1.8 billion for the first six months of 2024 (6MFY2024), marking a return to profitability after two consecutive years of losses. The company’s gross profit margin improved to 11.47% for 6MFY2024, up from 9.04% in FY2023.
The company slipped into Practice Note 17 status in February 2023 amid massive impairment caused by its failure to offload RM552.3 million worth of Covid-19 vaccines.
Lembaga Tabung Angkatan Tentera (LTAT), or the Armed Forces Fund, is the largest shareholder in Pharmaniaga, with its wholly owned flagship Boustead Holdings Bhd holding a collective 54.9% stake in the company.
Source: The Edge Malaysia
