Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Jan 14): CGS-CIMB said Friday (Jan 14) Pharmaniaga Bhd did not forecast any major revenue impact from the implementation of a vaccine ceiling price as its current average selling price for the Sinovac vaccine to the private market is close to the new wholesale ceiling price of RM62 per dose.

However, CGS-CIMB cut its revenue for the financial year ended Dec 31, 2021 (FY21)/FY22 forecast revenue by 3%/6% and core earnings per share by 7%/12% due to lower revenue per dose.

“We had previously assumed a higher average selling price of about RM140 for the sale of the filled-and-finished vaccine to the private sector in the second half ended Dec 31, 2021 (2HFY21) and FY22, which we now reduce to RM62 per dose,” it said.

“We keep our projections intact for about 14 million/3 million doses of the filled-and-finished vaccine to be supplied in FY21/FY22. We now forecast revenue contribution of RM1.73 billion/RM186 million (35%/5% of total revenue) from the supply of the filled-and-finished vaccine in FY21/FY22 (previous: RM1.88 billion/RM421 million).

“Nonetheless, we note that our assumptions for revenue per dose and number of doses supplied for the vaccine remain fluid and may be subject to future revisions, pending updates from Pharmaniaga,” the research house said.

The government announced Thursday that a ceiling price will be imposed on the sale of the Sinovac (CoronaVac) Covid-19 vaccine to the private market, effective from Jan 15. The wholesale price for the vaccine will be capped at RM62 per dose while its retail price cap will be RM77 per dose.

As its earnings cuts mainly affect FY21 to FY22, CGS-CIMB reiterated its "add" rating on Pharmaniaga with an unchanged target price of RM1.

“Pharmaniaga is our top pharmaceutical pick,” it said.

At the time of writing, Pharmaniaga slipped one sen or 1.27% to 77.5 sen, valuing the group at 1.03 billion.

Edited BySurin Murugiah
      Print
      Text Size
      Share