NST Business
KUALA LUMPUR: Pharmaniaga Berhad, which is planning to place out new shares to raise up to RM44.21 million for working capital, has today clarified that it will be using the proceeds from the exercise to pay suppliers/trade creditors of the group.
The company's shares fell almost four per cent to a low of RM0.365 today from its closing of RM0.38 yesterday, after Pharmaniaga tagged a RM0.34 price to the planned shares placement.
On Tuesday, financially troubled Pharmaniaga said it plans to place out 131 million new shares representing 10 per cent of total issued shares confident that the Ministry of Health will renew its concession to provide medicine and medical supplies, by end of June 2023.
A Practice Note 17 (PN17) company, Pharmaniaga has until February 2024 to submit its financial regularisation plan to Bursa Malaysia Securities.
The company said aside from biopharmaceuticals, Pharmaniaga intends to intensify its research and development (R&D) activities to formulate new high-value pharmaceutical products.
Currently, the group has 101 new products in its 5-year product development pipeline, which includes, amongst others, cardiovascular system products, anti-diabetic products and supplement products.
Its R&D focus may enable the group to become one of the early market leaders of off-patent originator products and obtain early market share as well as further expand its product offerings.
Pharmaniaga expects the local private market to grow fuelled by the introduction of new drug launches such as Rabirox, Roxatin, SkyVaricella, Levozal and the continued success of market-leading brands including Safrosyn, Iqnyde and Aspira. Furthermore, Pharmaniaga is optimistic about its plans to expand in Indonesia.
Through its subsidiary PT Millennium Pharmacon International, the group is establishing new branches to strengthen its logistics and distribution capabilities. With a central warehouse in Jakarta and 33 branches throughout Indonesia.