Telegram群组索引:Pharmaniaga to ride on high demand for its products

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MIDF Research said the group has increased its profitability in the last few months as demand for pharmaceutical products continued to rise well into the second half of the year.

KUALA LUMPUR: Pharmaniaga Bhd is expected to post positive earnings in financial years 2022 (FY22) and FY23 as demand for pharmaceutical products continues to increase.

In a note, MIDF Research said the group has increased its profitability in the last few months as demand for pharmaceutical products continued to rise well into the second half of the year.

“Despite having no problems with raw materials, Pharmaniaga has stated that the high demand has caused manufacturing to go beyond 100% capacity, and paracetamol production had increased to more than twice the normal capacity.

“Liquid drugs are also facing a demand and supply imbalance, as such, Pharmaniaga’s Indonesian plants have been requested to deliver the syrups,” the research house pointed out.

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MIDF Research also added that Pharmaniaga’s logistics segment will be renewing its concession agreement with the government in the fourth quarter of 2022, assuring a steady order of drugs for public hospitals in the near term.

Additionally, the group’s efforts to push its brands to become household names could reset the public sentiment that only certain brands of drugs would give out the same effect, hence boosting its future income.

“We are also optimistic on its vending machine venture which is part of the pharmaceutical sector’s solution to accessibility and digital healthcare,” it said. — Bernama


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