PHARMANIAGA Bhd has received approval from Bursa Malaysia Securities Bhd for its regularisation plan (RP), a critical step toward exiting Practice Note 17 (PN17) status and ensuring long-term business viability.

Pharmaniaga’s MD, Zulkifli Jafar, said the plan’s approval enables the company to move forward with its financial and operational restructuring efforts.

“The approval from Bursa Malaysia paves the way for Pharmaniaga to implement its comprehensive RP, designed to strengthen the group’s financial position, enhance operational efficiencies, and secure long-term growth,” he said.

“With this latest development, we are now fully focused on executing the RP and achieving a swift exit from PN17,” he added.

The RP includes initiatives such as a rights issue to allow shareholders to reinvest in the company, a private placement to attract strategic investors, and a capital reduction exercise to realign the Group’s share capital.

These measures aim to address Pharmaniaga’s financial challenges and reinforce its core operations.

The company recently reported improved financial results for the third quarter ended September 30, 2024, posting a profit after tax (PAT) of RM101.3 million.

This marks a significant recovery compared to the RM49 million loss recorded in the same quarter of the previous year.

The turnaround highlights the progress made under the restructuring initiatives.

Zulkifli emphasised the company’s commitment to maintaining service quality during the transition.

“The Group assures its stakeholders, including customers, investors, and business partners, that we remain committed to maintaining the highest standards of service and product quality throughout this period of transformation,” he said. –TMR