By ALIFAH ZAINUDDIN / pic by MUHD AMIN NAHARUL
PHARMANIAGA Bhd is moving away from its traditional concession business by expanding its breadth in the private segment and exports in the region.
The pharmaceutical company is looking to bring in a range of new products to meet demands in the local private sector and widen its international reach through its Indonesian operations. The latter contributed 32% to the group’s revenue last year.
“We plan to increase our market share in the private sector by introducing more over-the-counter and consumer healthcare products. We are doing it aggressively this year to further reduce our dependency on the concession business,” MD Datuk Farshila Emran (picture) told reporters after the company’s AGM in Damansara earlier today.
In 2017, its non-concession business contributed 51% to the company’s overall turnover, up from 49% the previous year. The company has allocated RM75 million in capex this year to be used for machinery upgrades, new warehouse facilities and the development of new products.
Pharmaniaga currently has portfolio of over 200 products with more being developed under its R&D unit. The group is targeting an excess of 250 products by 2024, with new therapeutic categories to be included.
Chairman Tan Sri Lodin Wok Kamaruddin, however, said the group’s renewed focus on its non-concession business was not an indication of a reduction in supplies under its concession agreement with the government.
The pharmaceutical group has a 10-year concession agreement with the Ministy of Health, which began on Dec 1, 2009. The contract involve the purchasing, storage, supply as well as distribution of approved drugs and medical products to government hospitals and clinics.
Lodin said he is confident the concession will be renewed.