PHARMANIAGA Bhd is optimistic with its COVID-19 vaccine roll-out plans given the fill and finish process are progressing well while its small volume injectable plant in Puchong is about 80% ready.
Moreover, Pharmaniaga is also confident of having sufficient capacity to distribute vaccines nationwide – something that it has been doing since 1994.
In this regard, the integrated pharmaceutical company has a readily-available facility and proper methodology that allows the transportation of vaccines to be carried out swiftly.
The company currently has a five-year contract to provide logistics and distribution services for the Health Ministry up to end-November 2024.
Hong Leong Investment Bank (HLIB) Research noted that Pharmaniaga is familiar with the handling of vaccines between 2-8°C, as well as is equipped to handle cold chain transportation of up to -80°C.
“For ultra cold chain (UCC) of -70°C, Pharmaniaga will be able to transport the UCC to customers’ premise but the challenge would be for them (customers) to store the vaccines,” wrote Farah Diyana Kamaludin in a company update following a recent virtual briefing with Pharmaniaga’s management.
“Hence, we feel it would be a challenge if the Government opts for the vaccine that requires UCC as evidently not all government hospitals would have the capabilities and facilities to store the vaccine.”
Looking ahead, HLIB Research noted that Pharmaniaga expects better performance in its 4Q FY2020, driven by the potential increase in personal protective equipment sales due to the third wave of COVID-19 cases in Malaysia.
“Pharmaniaga’s target of having its own vaccine license by 2024 and a vaccine manufacturing plant by 2026 is right on track,” Farah Diyana pointed out.
On Oct 26, Pharmaniaga inked a memorandum of understanding with Serum Institute of India Pte Ltd, the world’s largest vaccine manufacturer by number of doses produced, to further strengthen its vaccine business.
All-in, HLIB Research maintained its “hold” rating on Pharmaniaga with an unchanged target price of RM5.70 as its briefing with the company’s management “yields no major surprises”.
At 12.15pm, Pharmaniaga was down five sen or 0.89% to RM5.54 with 381,900 shares traded, thus valuing the company at RM1.45 bil. – Nov 23, 2020
