KUALA LUMPUR (Jan 11): Pharmaniaga Bhd said its wholly-owned subsidiary Pharmaniaga Logistics Sdn Bhd (PLSB) has received a letter from the Ministry of Health (MoH), agreeing in principle for the continuation of medical supply logistics services to MoH facilities for a period of 10 years.

The continuation of the logistics services is subject to the terms and conditions to be agreed between parties which will be discussed and finalised during the interim period ending Dec 31, 2022, according to the pharmaceutical company.

"Pharmaniaga thanks the government for continuing to place its trust in the company and recognise its good and strong performance in meeting all the stringent service standards set by MoH," it said in a statement on Tuesday (Jan 11).

On Dec 30, 2021,PLSB also received a letter from the MoH for the extension of services for another year until Dec 31, 2022, pending finalisation of the new logistics and distribution concession agreement.

In November 2019, MoH extended PLSB's services for the provision of medicines and medical supplies to MoH facilities, from Dec 1, 2019 to Dec 31, 2021. PLSB was also allowed to continue providing logistics and distribution services to the MoH for five years ending Dec 31, 2024.

Pharmaniaga's major shareholders are Boustead Holdings Bhd and the Armed Forces Fund Board.

For the cumulative nine-month period ended Sept 30, 2021, Pharmaniaga's net profit rose 156.3% year-on-year to RM86.68 million from RM33.82 million, on the back of a 96% rise in revenue to RM4.1 billion from RM2.09 billion.

On Tuesday, Pharmaniaga's shares were up two sen or 2.56% to 80 sen as at the time of writing.

At 80 sen, the company is valued at RM1.04 billion.