KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaway: Pharmaniaga Bhd is on track to exit its PN17 status by 1Q2026 following a successful regularisation plan, with MBSB Research upgrading the stock to a “buy” call and setting a target price of 32 sen.
Pharmaniaga Bhd is expected to leave its financially distressed PN17 status by the first quarter of 2026, according to a note from MBSB Research. The brokerage upgraded its recommendation on the stock to “buy,” citing improved fundamentals and stronger growth prospects post-regularisation.
The group’s turnaround strategy included a capital reduction and a large private placement, which brought in 19 new investors. As a result, Pharmaniaga’s issued shares ballooned from 1.441 billion to 6.557 billion, while major shareholders saw their stakes diluted from 55% to 44%. Despite the dilution, the move successfully recapitalised the company, providing it with a stronger balance sheet and healthier cash flows.
Looking ahead, Pharmaniaga is guiding 10%-12% year-on-year growth in stock-keeping-unit (SKU) volumes for its logistics and distribution arm in the second half of FY2025, which is expected to translate into 15%-20% revenue growth. MBSB believes that uninterrupted operations, expansion plans, and continued government support via concessions and regulations will underpin performance.
A key catalyst lies in the group’s biopharmaceutical push. Pharmaniaga is expected to add more than 91 new biopharmaceutical products over the next five years, with contributions set to kick in meaningfully from 2HFY2026. These higher-margin products will complement its generic drug portfolio, which already positions the company well as governments and healthcare providers push for cost-effective treatment options.
On the manufacturing front, Pharmaniaga is targeting the launch of at least 10 new products per year, a significant step up from its previous pace of just 2–3 annually. This acceleration aligns with efforts by the National Pharmaceutical Regulatory Agency (NPRA) and the Malaysian Organisation of Pharmaceutical Industries (MOPI) to fast-track approvals for essential medicines while maintaining compliance standards.
Bottom Line: With its balance sheet recapitalised, logistics operations expanding, and a stronger pipeline in generics and biopharmaceuticals, Pharmaniaga looks well-positioned for recovery. Exiting PN17 by early 2026 could be a turning point, offering investors exposure to a healthcare player riding structural growth in Malaysia’s pharmaceutical sector.
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