KUALA LUMPUR, May 16 — Pharmaniaga Berhad made a profit after tax of RM20 million in the first quarter this year, up by 12 per cent from last year’s corresponding quarter.
Malaysia’s largest Bumiputera tender agent in the pharmaceutical industry also enjoyed a higher profit before tax of RM13 million for its logistics and distribution division for Q1 this year, compared to RM10 million in the same quarter in 2018.
The company attributed the stronger performance to greater contributions from government hospitals, even as Pharmaniaga has received sole concession for 25 years since 1994 to distribute over a third of the government’s drug supply.
“The Group delivered solid results despite the challenging economic environment, driven by stronger demand from government and private hospitals in both Malaysia and Indonesia,” Pharmaniaga managing director Farshila Emran said in a statement.
“Prospects remain bright for Pharmaniaga as we build on our solid foundation to grow our concession and non-concession businesses. In particular, we aim to heighten our market presence in the private sector via strategic marketing initiatives,” she added.
Pharmaniaga’s manufacturing division posted profit before tax of RM19 million for the first quarter this year, slightly lower than RM20 million in last year’s corresponding quarter. This was primarily due to reduced contributions from the concession business.
Pharmaniaga’s 10-year concession agreement with the Ministry of Health (MOH) ends this November.
Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail said last month that a Cabinet committee on monopolies was investigating Pharmaniaga.
Pharmaniaga is the biggest Bumiputera tender agent in the country with exclusive concession to supply 700 items in the Approved Product Purchase List (APPL), determined by MOH, to government hospitals, institutions, and clinics.
Pharmaniaga’s concession provides distribution and logistics services for the products purchased under the APPL. According to the Malaysia Competition Commission (MyCC), Pharmaniaga supplied 38.5 per cent of the total cost of medicines procured for all MOH hospitals, institutions and clinics in 2015.
