Pharmaniaga unveils Vision 525 to enhance ops

PETALING JAYA: Practice Note 17 flagged Pharmaniaga Bhd has introduced a strategic plan, dubbed Vision 525, which is aimed at achieving the company’s goals through actionable and measurable objectives.

The plan comprises five pillars including strengthening its public-sector business, building its biopharmaceutical capability, optimising cost aggressively, growing the private market and reinventing the Indonesian market.

In a statement, the pharmaceutical company said it will continue to leverage improving operational efficiency and stringent cost-control measures, which have proven to help the group remain resilient and emerge stronger amidst its challenging financial situation.

Its executive director Zulkifli Jafar said the initiatives taken in 2023 have started bearing fruit, as evident in the company’s performance in the first quarter ended March 31, 2024 (1Q24), where net profit rose almost ten-fold to RM25.6mil from RM2.6mil in 1Q23.

“Pharmaniaga’s remarkable operational and business fortitude played a crucial role in paving the way for the group’s resurgence and recovery,” he noted.

He said Pharmaniaga was able to strategically direct its organisational resources by identifying key areas of focus, driving transformative change and achieving sustainable growth.

Notable events throughout the group’s financial year ended Dec 31, 2023 (FY23) include the extension of the concession agreement with the Health Ministry for seven years, retrospectively from July 1, 2023, and the establishment of manufacturing facilities for vaccines and insulin to expand the biopharmaceutical business.

Additionally, the group implemented comprehensive cost-optimisation exercises across its business divisions, launched new products for the private market, and expanded its business operations in Indonesia by opening two new distribution centres in Purwakarta and Mataram.

Its chairman Izaddeen Daud said the board has endorsed Vision 525, which creates hope for the future.

“We will continue to support the management in implementing the initiatives under this vision,” he said.

In 1Q24, Pharmaniaga’s Indonesian division registered a pre-tax profit of RM2.2mil, an improvement compared to the RM1.9mil in the previous corresponding period.

This was driven by higher revenue from products of existing principals and additional sales generated from the opening of two new branches in February 2024.

The group’s operational efficiency was further improved through ongoing stock optimisation and aggressive payment collection.

In an earlier statement, Pharmaniaga said Indonesia’s economy is projected to maintain stable growth at 5% in 2024, underpinned by strong domestic consumption, infrastructural investments and a favourable business environment.

It remains cautiously optimistic on the outlook for the global economy this year.