KUALA LUMPUR – Pharmaniaga Bhd’s wholly-owned unit, Pharmaniaga Logistic Sdn Bhd (PLSB), has announced that it is entering into a concession agreement (CA) with the Health Ministry to handle its medical supply logistics services.
In a bourse filing today, Pharmaniaga Bhd, under Bursa Malaysia’s Practice Note 17 (PN17), said that the agreement takes effect retrospectively from July 1, 2023, and will remain in force for a period of seven years until June 30, 2030, subject to earlier termination.
It also states that under the agreement, PLSB is granted the rights and authorities to undertake the procurement, storage, supply, and delivery of medical products to public sector customers.
It is also authorised to carry out pharmacy information system services and construct or acquire four new warehouses for the storage of medical products.
PLSB also said the CA will serve as a platform for the company to support the nation in the logistics and distribution of medical products to the public sector.
“It will also provide the company with another income stream, which will contribute to the profitability of the company,” it stated.
PLSB, however, did not disclose the value of the contract, as it noted that the information provided under the agreement needs to be kept fully confidential.
On July 12, last year, Pharmaniaga announced that the Health Ministry had issued a letter to PLSB for the new seven-year concession agreement to provide medical supply logistics services to the ministry.
It was reported that Pharmaniaga has been classified as a PN17 company since February 2023 after incurring losses resulting from a substantial half-billion-ringgit impairment.
The group reported a net loss of RM49.34 million for the third quarter ended September 30, 2023, more than double the RM13.99 million quarterly net loss it logged a year earlier. – January 4, 2023