PETALING JAYA: Pharmaniaga Bhd, which plans to embark on mergers and acquisitions (M&A) by the end of this year, is at a preliminary stage of considering M&A activities with a company engaged in bioequivalence as well as another company involved in research & development, according to its group managing director Datuk Zulkarnain Md Eusope.
“We want to see whether the M&A would be more palatable to us and the direction of our business plans,” Zulkarnain told the media during a virtual briefing yesterday.
Nonetheless, he acknowledged that the process will take time and should every step run smoothly, the M&A will happen this year.
“However, we are very careful, as not all M&A will be successful as there is a need to consider the valuation and due diligence thoroughly.”
Moving forward, the group has set its sights on an international expansion as part of its strategic direction, starting with the Asean region.
In Indonesia, it has already established a presence via PT Millennium Pharmacon International Tbk (PTMPI), an Indonesian-listed entity engaged in logistics & distribution and PT Errita Pharma which has manufacturing facilities in Bandung. Operations in the archipelago have seen revenue growth since 2004.
To further its business, he identified the need to understand the local marketing nuances and norms of doing business in Indonesia. To this end, it has appointed a local business figure as the PTMPI’s chairman of commissaries and will also appoint a local as the president director of Errita soon.
“We don’t want to miss the boat of almost 300 million people, a big market that is Indonesia. If we position our products properly we can export our R&D via our Errita plant and distribute it through PT MPI. This is one of our strategies in Indonesia,” explained Zulkarnain.
Apart from the republic, the group has also set its sights on Thailand and the Philippines by establishing collaborations.
“We expect to conclude deals with Thailand before the end of February and the Philippines by H1’22,” he said.
Zulkarnain said that it is going step by step with the expansion plan in Asean by capitalising on the immediate neighbouring countries.
“If we can capture 5% of this 700 million market, it is more than the total population in Malaysia. This is the way we’re going to expand our business.”
The next destination for Pharmaniaga is the Middle East and North Africa region, where it has begun the registration process for some of its products in Dubai and the UAE. Apart from that it has already received approval from some of its products in Portugal.
“With our plans in the international market, we hope to get it to market in two or three years’ time and have identified some distribution partners in these countries.”
In line with the plans to venture into the international market, Zulkarnain stated that it aims to bolster the group’s regulatory affairs division.
“This will be done by setting up a new Scientific Advisory Group consisting of world-renowned scientists, and their names will be announced soon,” he said.
