KUALA LUMPUR, March 20 (Bernama) – Pharmaniaga Bhd is moving forward with its regularisation plan to exit Practice Note 17 (PN17) status following shareholders’ approval of three key resolutions at the group’s extraordinary general meeting (EGM) today.
The three resolutions, aimed at strengthening its financial position and supporting business expansion, are a rights issue to raise gross proceeds of up to RM353.5 million; a private placement of up to RM300 million with a minimum of RM215 million; and a capital reduction through the cancellation of RM520 million in issued share capital.
Pharmaniaga’s “largest shareholders, Boustead Holdings Bhd and Lembaga Tabung Angkatan Tentera, which hold 47.1 per cent and 7.8 per cent respectively, have undertaken to subscribe to their entitlements under the rights issue,” it said in a statement.
Pharmaniaga said 51.3 per cent of the proceeds will be used to reduce borrowings, leading to estimated interest savings of RM16.8 million annually, while 34 per cent will be allocated for business expansion, including acquiring four new warehouses in Malaysia. Funds have also been set aside for the development of human insulin, vaccines, and other generic drugs.
Managing director Zulkifli Jafar said the approval marked a key step in resolving the group’s PN17 status and restoring financial stability. "We have been actively engaging with stakeholders on the regularisation plan, and we believe the rights and placement shares have garnered strong interest.”
He noted that their biopharmaceutical initiatives, particularly in human insulin and vaccine production, have also received positive feedback. He revealed that Pharmaniaga’s human insulin manufacturing plant, launched in September last year, is expected to commence commercial production in the fourth quarter of 2025.
He highlighted that the group’s logistics and distribution concession with the Ministry of Health and steady growth in Indonesia place Pharmaniaga on a strong path toward financial revitalisation.
Since being classified as a PN17 company in February 2023, Pharmaniaga has implemented various initiatives to improve operational efficiency and cost optimisation.
The group reported a profit after zakat and taxation of RM133.8 million for the financial year ended Dec 31, 2024, a significant turnaround from a loss after zakat and taxation of RM78.7 million in FY2023.
— BERNAMA
