CCM Duopharma - Poised to be the largest pharmaceutical manufacturer in Malaysia

CCM Duopharma Biotech Bhd (CCMD) is set to become one of Malaysia’s largest pharmaceutical manufacturers following its purchase of six pharmaceutical units from parent company, Chemical Company of Malaysia Bhd (CCM) for RM245.1 million.

CCMD will be taking over CCM Pharmaceuticals Sdn Bhd, CCM Pharma Sdn Bhd, Innovax Sdn Bhd, Upha Pharmaceutical Manufacturing (M) Sdn Bhd, CCM International (Philippines) Inc and CCM Pharmaceuticals (S) Pte Ltd.

The acquisition will allow CCMD to enhance its product offerings and scale via the combined production facilities.The deal will be beneficial for both CCMD and CCM and bring value to their shareholders, CCM said in a statement today.

“The acquisition will give us greater manufacturing capacity and flexibility to cater to the growing demand for generic medicines, thus allowing us to bid for larger contracts,” said CCMD Chief Executive Officer Leonard Ariff Abdul Shatar.

He said the company was confident of keeping its margins healthy as it ventures into new niche segments including biotherapy and biologics, specifically erythropoietin (EPO) and insulin.

CCMD, a subsidiary of CCM, will undertake a renounceable rights issue of 139.48 million new shares at RM1.40 each to raise RM195.27 million to fund the acquisition.

CCM is a key player in the fertilisers, chemicals and pharmaceuticals industries.

/Bernama 12-03-2015

Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

Post a Comment