Materia Medica Malaysiana

Pharmaniaga to gain from growth in biotech sector

PHARMANIAGA Bhd, one of Malaysia's largest integrated healthcare players, is well poised to take advantage of the vibrant growth in the pharmaceutical industry as well as the spillover effects from the growth in the biotech and medical tourism industries this year.
Given the group's bright prospects, analysts are recommending a “buy” on the stock with a 12-month target price of between RM5.95 and RM6.46 per share.
MIDF Sisma Securities in its recent research notes said Pharmaniaga's capacity for growth was unquestionable in view of the industry's potential and continuous efforts to enhance shareholder value via steady dividend payouts.
“We believe the company is making good progress by shifting its earnings dependence away from government concessions,” MIDF Sisma Securities said.
The Pharmaniaga group currently receives a steady income from a 14-year concession with the Health Ministry.