Pharmaniaga shares down on news that concession for MOH will end

Pharmaniaga Bhd shares on Bursa Malaysia fell 36 sen to RM2.14 as at 2.53pm following the announcement that its concession to distribute drugs and medical supplies for the Health Ministry (MOH) will end.

A total of 536,700 shares were transacted.

Announcing the news today, Health Minister Dzulkefly Ahmad said there would no longer be a concessionaire for logistics and distribution services as an open tender system would be introduced.

Pharmaniaga’s concession to purchase, store, supply and distribute at least 700 pharmaceutical products on the Approved Product Purchase List (APPL) will end on Nov 30.

According to Pharmaniaga's 2018 annual report, sales of its APPL products to MOH grew by nine percent last year to RM1.2 billion. 

For the financial year ended Dec 31, 2018, the group recorded a net attributable profit of RM42.47 million on revenue of RM2.38 billion.

The company said the 2017-2019 APPL product review included 136 new products, expanding the range of APPL products by 20 percent to almost 750 products.

- Bernama