KUALA LUMPUR (Nov 15): Pharmaniaga Holdings Bhd's net profit dropped 72.6% to RM3.58 million in the third quarter ended Sept 30, 2017 (3QFY17) from RM13.06 million a year ago, on lower off-take for in-house products.

Earnings per share for 3QFY17 fell to 1.38 sen from 5.04 sen in 3QFY16.

Quarterly revenue, however, rose 11.5% to RM574.5 million from RM515.22 million in 3QFY16, helped by increased orders from government hospitals and growth from its Indonesia operations.

Pharmaniaga also declared an interim dividend of 5 sen for the financial year ending Dec 31, 2017, payable on Dec 15.

The weak third-quarter earnings dragged down the group's net profit for the cumulative nine months (9MFY17), which dipped 31% to RM32.02 million from RM46.44 million a year ago. However, revenue was up 6.5% to RM1.71 billion in 9MFY17 from RM1.61 billion in 9MFY16.

On prospects, Pharmaniaga said driven by research and development efforts, the group is on track to deliver new product offerings for both local and overseas markets for the coming years ahead, which should further strengthen earnings potential.

It added that the initiatives introduced by the government in Budget 2018 bode well for Malaysia’s healthcare sector.

“Amid this encouraging backdrop, Pharmaniaga is well-prepared to tap these opportunities,” it said in a filing with Bursa Malaysia today.

At midday break, Pharmaniaga shares were traded at RM3.86, with 178,000 shares done.