Pharmaniaga: 2013 Earnings

Pharmaniaga, a leading Malaysian healthcare company is driven by its core businesses namely, generic pharmaceuticals manufacturing and R & D, warehousing and distribution of pharmaceutical and medical products, sales & marketing as well as hospital projects.

Pharmaniaga has also created a niche in healthcare IT solutions which forms the backbone of its operations

Pharmaniaga Bhd's pre-tax profit for the financial year ended December 31, 2013 fell to RM93 million from RM103.31 million in the 2012 financial year ended December 31, 2012. Revenue rose to RM1.95 billion from RM1.81 billion.

For the fourth quarter, the pharmaceutical company's pre-tax profit rose to RM33.01 million from RM4.25 million in the same period in 2012, while revenue increased to RM567.86 million from RM482.40 million.

Pharmaniaga said the higher revenue for the current financial year was attributable to stronger contributions from its non-concession business with new tenders awarded during the year as well as an organic growth for its concession business.
 
On prospects, Pharmaniaga said its Logistics and Distribution Division is expected to contribute positively to the group's revenue, riding on strong demand for its concession products during the year.

"Similarly, the manufacturing division anticipates healthy growth despite the recent rise in operating costs such as for fuel and electricity, as this will be mitigated by prudent cost management," it said.

In line with its efforts to expand within emerging markets, the group intends to engage more overseas distributors and business partners as well as expand its overseas market footprint through acquisitions, it said.

"With our recently acquired new manufacturing plant in Indonesia, it is anticipated that the group's strategic manufacturing plans will contribute positively to the group's long-term revenue," it added.

Pharmaniaga said it will continue to transfer best practices from its domestic operations to accelerate business growth in its overseas operations.

"In the meantime, we will continue to devote effort to research and development of new products," it said.

Bernama: 24-02-2014.

 

 

 

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Birds of a Feather Flock Together

Do you want to be different and stand out in the crowd? Or are you the mediocre type who are easily contented and satisfied to be among the crowd - not seen, not heard ... not wanting to challenge the norms or "pushing the envelopes" in order to cross into a new space.

I trust that with the beginning of 2014, if you are the mediocre type or are afraid to make changes or lack confidence, yet desiring to be numbered among the "successful" and "heard", you should take the first bold step to position and differentiate yourself from the rest of the faceless crowd. 

How? Be God fearing and seek God for wisdom. Tell yourself that you want to be among the people who are successful. Seek these people out and be part of their community. Think like them and behave like them in a God fearing manner. Heard of the Law of Attraction?

It is said that long term success is like a deep-rooted sturdy tree. It is able to withstand the great tsunami of life. Shallow rooted and weak tree will be easily uprooted and blown away when the forces of nature come its way.

Similarly, our lives, to be successful, like the deep-rooted sturdy tree, we need to arm and equip ourselves with the relevant knowledge, skill and people network. We need to have positive attitude, behaviour, good values, humble, persevere and longsuffering.

Additionally, identify and seek out people who can encourage and keep you focus and move towards your goal ie look for a mentor and positive network! Do not grumble, whine or "talk negative" when there is a setback, for this will soon pass away. Instead, ask why and provide solutions!

Join and align with the winners, and NOT the "grumblers, whiners, finger-pointers" ... these are the losers and will be among the faceless, unhappy crowd.





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B Braun expands its Pharmaceutical Plant in Malaysia

In addition to the MYR 1.75 billion investment in 2010, B Braun Medical Industries Sdn Bhd announced, on 13-02-2014, a further investment of MYR 250 million into the expansion of its Pharmaceutical plant located at the Bayan Lepas Free Industrial Zone in Penang.   

The plant will manufacture sterile infusion solutions to cater to the increasing demand from both the local and the regional markets.
 

The expansion project with its state-of-the art automated equipment and technology will manufacture new formulations as well as  further add to the total capacity of the enlarged plant.  The increased capacity will be utilized for both local and export markets making B. Braun among the largest exporters of pharmaceutical products in Malaysia.

 

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CCM invests into PanGen: Biosimilars

Chemical Company of Malaysia Berhad (CCM) has accelerated its foray into the biosimilars business with the purchase of an 11.6 per cent equity stake in PanGen Biotech, Inc, (PanGen) a Korean biotechnology company.

The investment concluded through a share purchase agreement signed on 26 December 2013 also gives CCM exclusive marketing and commercialization rights in Malaysia, Singapore and Brunei for all biosimilar products developed by PanGen.

“The investment reaffirms CCM’s Pharmaceuticals Division’s commitment into biotechnology and specifically biosimilars, which are follow-on versions of existing biopharmaceutical products whose patents have expired,” said Encik Amirul Feisal Bin Wan Zahir, Group Managing Director of CCM.

“PanGen is not a stranger to CCM as it is already a partner in historic joint Phase III clinical trials for an Erythropoietin (EPO) biosimilar developed for use in the treatment of anemia in end stage kidney failure patients,” he added. The Clinical trial is currently underway and is aimed at assessing the safety and efficacy of the EPO biosimilars in patients with anemia arising from chronic renal failure.

The biosimilars business, which is dominated by global pharmaceutical players, is expected to expand at a compounded average growth rate of 12 per cent in Asia to an estimated RM8 billion in the South East Asia region by 2020.

In this regard, CCM’s equity stake in PanGen allows its Pharmaceuticals Division to have a strategic access to a biosimilars pipeline that is being produced as there are very few start-up biological companies globally with the expertise, track record and range of cell lines already developed by PanGen.

This latest development will also propel the CCM Group to compete for high value added partnership in the commercialization of biosimilars while eliminating the need to invest in very expensive clinical trials and long gestation periods to deliver the product to market.

 

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For Consideration: Moving to Greener Pasture ...

It is not unusual, at this time of the year, for employees to look outside their existing turfs for "greener pastures" outside. It will be a "merry-go-round" as employees "switch chairs" for another.

It would be appropriate, at this juncture, to remind job seekers to consider not only the basic remuneration but also the "performance-linked incentives and long-term rewards for the compensation mix" before making any decision to move on.

Assuming that you have received severable job offers, you will need to compare each Company's compensation plan against another. A great jump in the basic salary offered should not close your eyes to the overall package.

This would include (a) direct financials: salary, bonus, incentives, allowances, claims etc (b) indirect financials:  medical (out-patient and/or hospitalisation), insurance benefits (life and/or PA - self or including family), company car, sponsorship of part-time study, study leaves, annual leaves, compassionate leaves etc (c) non-financials: work culture and environment, Company policy, career opportunities, focus and direction of the Company etc

The highest salary that the Company offers, may not necessarily be the best package value for you. For example, medical and insurance packages may not translate into your immediate monthly "take home pay" but will be valuable benefits when unfortunate circumstances demand it. You need to look beyond immediate numbers to have a peace of mind as well. This will be to you and your loved ones.

Work environment and culture are also important considerations. They should be viewed as "additional compensations" eg  work ambience, entrepreneur, innovative and creative culture etc would add to the joy, productive and conducive work place.

Thus, there is a need to harmonise the non-financial benefits with the Company's performance-linked incentives and long-term rewards for the compensation mix in the decision making process. 



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Creating Effective Salary Packages for CEOs

CEOs and key top management staff are enjoying higher total salary packages as more organisations move towards performance-linked incentives and long-term rewards for the compensation mix, said management consulting firm Hay Group Malaysia.

"The era of fixed salaries for firms operating in Malaysia is waning. Bonuses too are seen as incentives which are too short-term focused, whereas longer term rewards are better at driving sustainable value creation for the organisation," said its director Shahrizal Suffian.

He added that CEO total salary benchmarks are not always linked to the organisation's profitability.

"Market reach, customer service levels and other business aims have become more important as firms are embracing a more holistic outlook, recognising profits are positive outcomes when key performance targets are achieved," he said.

Hay Group Malaysia, which has been involved in crafting CEO total remuneration packages for several major organisations have discovered that stock options are not always seen as attractive perks any more.

According to Hay Group Malaysia, the adoption of the International Financial Reporting Standards (IFRS) since 2006 has resulted in stock options becoming an expense item in the reporting of earnings, with an impact on revenue and profit when previously it was seen as "free" rewards that cost the company nothing.

Shahrizal said many companies had stock options in the past but the simplistic formula does not necessarily spur the CEO to drive growth while long-term incentives that are customised to business strategies and takes into account the firm's culture and operating nuances have produced far better results.

How do you craft long-term incentives to spur a CEO to grow the company? He suggested sophisticated profit-sharing models with features like hurdle rates and tiering of profits to trigger rewards.

 He said a retention mechanism should also be included, allowing the firm to better manage its cash flow for example "bonus banking" where CEOs don't get the rewards unless the company's targets are achieved and continuous growth of those targets are also maintained over a set number of years.
"For instance, if the CEO has achieved the targets in the previous five years, the sixth-year bonus can be huge. Conversely, the 'banked bonuses' will be lost if subsequent year targets are unmet," he said.

Shahrizal said a long-term incentive is especially useful for firms seeking to turn around operations and reduce losses as they would otherwise be unable to offer enough to attract top talents. He added that such a strategy would work if the CEO is able to institute the right team behaviour within the firm.

Source: theSUNdaily 05-02-2014

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Malaysia: Global 3rd best for Healthcare services

Malaysia is being rated as third best in the world for healthcare services

The Health Minister, Datuk Seri Dr S Subramaniam gave credit to the boom in the country’s medical tourism sector through strategic investments on good medical facilities and competitive rates compared to other parts of the world.

“Medical tourism has benefited the Government in terms of foreign direct investments and also spin-off effects in the hotel and shopping sectors,” he said.

A study by the American publication International Living rated Malaysia’s healthcare system as the third best out of 24 countries in its 2014 Global Retirement Index, beating Spain, Italy, Ireland and New Zealand among other countries.

The index, which was recently released by the Baltimore-based magazine, praised Malaysia’s healthcare, which scored 95 out of a possible 100 points, as the medical expertise of Malaysian healthcare practitioners is “equal to or better than what it is in most Western countries” according to InternationalLiving.com’s Asia correspondent Keith Hockton.

The top two countries, France and Uruguay, scored 97 and 96 points respectively.

On the methodology of the index’s ratings, the magazine said both the cost and quality of healthcare were evaluated.

Another report in International Medical Travel Journal News reported that medical tourism receipts in Malaysia from foreign patients totalled RM509.77mil in 2011 involving 578,403 patients.

Dr Subramaniam added that Malaysia remained competitive with players like Singapore and Thailand and the focus was to consolidate the country’s position.

He said the key towards improving the overall healthcare sector would be to focus on the preventive and primary healthcare divisions.

Source: theSTAR 11-02-2014

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