Apex Healthcare Bhd’s wholly owned subsidiary Xepa-Soul Pattinson (Malaysia) Sdn Bhd will be constructing a new oral solid dosage manufacturing facility (SPP NOVO) that will cost RM68 million on its land in Malacca.
SPP NOVO will be a newly constructed stand-alone facility adjacent to Xepa’s current manufacturing facilities on the same campus at Cheng Industrial Estate. The estimated cost of SPP NOVO includes production machinery and an integrated multi-storey carpark.
“The construction of SPP NOVO will be funded through a combination of internally generated funds and external borrowings. At this juncture, the company has not finalised the terms and quantum of borrowings required,” Apex said in a stock exchange filing.
Xepa is a leading manufacturer of off-patent pharmaceuticals in Malaysia. Its current production facilities for oral solid dosage forms, designed and commissioned in 1996, are reaching optimal designed capacity and cannot be further retrofitted economically to increase output.
The construction of SPP NOVO is expected to commence in the fourth quarter of 2016 and commissioned in the first half of 2018. Detailed engineering design has been completed and tenders for construction and equipping are expected to be issued in the current quarter.
“The board of directors of Apex is of the opinion that SPP NOVO is a vital infrastructure that will enable Apex to execute and achieve its strategic plans for the future. It is in the best interest of the company.”
As of Sept 15, 2016, Xepa has secured preliminary approval from the Centre for Compliance and Licensing, National Pharmaceutical Regulatory Agency, Ministry of Health for the design and layout of SPP NOVO.
/theSTAR 16-09-2016
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