KUALA LUMPUR, Nov 5 — Pharmaniaga Bhd’s shares are on the rise in early trade after declining 11.6 per cent last Thursday following the possible end of its concession agreement with the government.
At 10.20am, the stock rose half-a-sen to RM2.13 with 319,700 shares changing hands.
Boustead Holdings is the majority shareholder of the pharmaceutical giant, owning 55.93 per cent of the company, while Lembaga Tabung Angkatan Tentera (LTAT) hold 11.12 per cent.
Meanwhile, LTAT owned a controlling stake in Boustead Holdings.
An analyst said Pharmaniaga has been the sole concessionaire providing services ranging from warehousing and distribution of pharmaceutical and medical products, manufacturing of generic pharmaceuticals, marketing and sales; research and development and many others which had boosted the local pharmaceutical industry.
Recently, the Health Ministry said Pharmaniaga’s concession to distribute drugs and medical supplies for the ministry would end.
“The rationalisation on ending Pharmaniaga’s concession as the ministry decides on the mechanism to manage the services via an open tender. However, the pullout would affect the performance of its main company which is Boustead and leave an impact on LTAT’s performance if the cabinet decides to end it (the concession),” she said.
As of 10.20am, Boustead shares declined half-a-sen to 97.5 sen, continuing its slide from RM2.86 recorded early last year.
Pharmaniaga in a statement after the ministry’s announcement last Thursday said business remained as usual and the company is optimistic of its capabilities to continue serving the nation.
“As the government believes in meritocracy, the company is confident that its performance will be the key factor to continue its services either through the extension of concession or open tender contract.
“Pending cabinet’s decision, it is business as usual and we will continue to provide our best services for the rakyat, consistent with our tagline Passion for Patients,” it said. — Bernama