Pharmaniaga Bhd (KLSE: PHARMA) has taken a major step forward on its turnaround journey after completing its regularisation plan, positioning the group for a potential PN17 exit by 1QCY2026. This development has caught the attention of analysts, with MBSB Research upgrading Pharmaniaga to a “Buy” call and setting a target price (TP) of RM0.32.
Regularisation Plan Recapitalises Pharmaniaga
The regularisation plan involved a capital reduction exercise and a massive private placement. As a result, Pharmaniaga’s issued shares surged from 1.441 billion to 6.557 billion, with 19 new investors onboard.
While this diluted major shareholders’ stakes from 55% to 44%, the recapitalisation has successfully strengthened the company’s balance sheet. This fresh capital infusion sets the stage for Pharmaniaga to focus on its logistics & distribution (L&D) and pharmaceutical manufacturing operations.
Logistics & Distribution Growth Outlook
For its core logistics & distribution (L&D) segment, Pharmaniaga is guiding 10%-12% y-o-y SKU volume growth in 2HFY2025, translating into 15%-20% revenue growth. This steady expansion is expected to be a key earnings driver as the company leverages its strong nationwide supply chain.
Manufacturing Segment to Accelerate
Pharmaniaga’s manufacturing division is set for a significant shift. Historically producing fewer generic drugs compared to peers, the group now plans to launch at least 10 products annually, a sharp increase from the previous 2-3 products per year.
At the same time, Pharmaniaga is venturing aggressively into biopharmaceuticals, with over 91 new products in the pipeline for the next five years. According to MBSB, biopharmaceuticals are expected to provide stronger margins compared to traditional generic drugs, enhancing profitability.
Regulatory Tailwinds
Positive regulatory developments also support this pivot. Both the National Pharmaceutical Regulatory Agency (NPRA) and the Malaysian Organisation of Pharmaceutical Industries (MOPI) are stepping up efforts to fast-track drug approvals, while ensuring compliance and quality standards. This creates a favourable environment for Pharmaniaga’s pipeline to reach the market faster.
Investment Outlook – Buy with TP RM0.32
With the completion of its regularisation plan, stronger capital structure, and ambitious product pipeline, Pharmaniaga is well-positioned to recover from its PN17 status. The upgraded “Buy” call by MBSB Research reflects renewed investor confidence in its long-term growth trajectory.
Key Catalysts to Watch:
- PN17 exit progress towards 1QCY2026
- Stronger L&D segment growth (15%-20% y-o-y)
- Biopharmaceutical launches (91 products in 5 years)
- Regulatory fast-tracking of approvals
At RM0.32 target price, Pharmaniaga offers a turnaround play for investors eyeing recovery stories on Bursa Malaysia.
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