Pharmaniaga gets one-year extension for supply of medicines to MoH facilities

KUALA LUMPUR (Dec 30): Pharmaniaga Bhd's services for the provision of medicines and medical supplies to the Ministry of Health's (MoH) facilities have been extended for another year until Dec 31, 2022.

Pharmaniaga gets one-year extension for supply of medicines to MoH facilities

Pharmaniaga said the extension was granted to its wholly-owned subsidiary Pharmaniaga Logistics Sdn Bhd (PLSB), pending the finalisation of a new logistics and distribution concession agreement.

"The scope of services to be provided by PLSB during this interim period of one year will remain the same as the terms stipulated in the concession agreement dated March 16, 2011," Pharmaniaga said in a statement.

"With the extension of the services, Pharmaniaga assures the logistics and distribution of medical supplies will continue as usual without any interruption," it added.

In November 2019, MoH extended PLSB's services for the provision of medicines and medical supplies to MoH facilities, from Dec 1, 2019 to Dec 31, 2021.

PLSB was also allowed to continue providing logistics and distribution services to MoH for five years ending Dec 31, 2024.

Pharmaniaga's major shareholders are Boustead Holdings Bhd and the Armed Forces Fund Board.

For the cumulative nine-month period ended Sept 30, 2021, Pharmaniaga's net profit rose 156.3% year-on-year to RM86.68 million from RM33.82 million, on the back of a 96% rise in revenue to RM4.1 billion from RM2.09 billion.

Pharmaniaga's shares closed up 0.66% or half a sen to 76 sen on Thursday, giving a market capitalisation of RM995.57 million. The counter has fallen 23.23% year to date.

source: theedgemarkets