New Sinovac deal to MOH could add circa RM12 million to Pharmaniaga
KUCHING: Pharmaniaga Bhd (Pharmaniaga) supplying 11 million Sinovac vaccine doses to the Ministry of Health (MOH) could add circa RM12 million at the earnings before interest and taxes (EBIT) level, based on analysts’ calculations.
The research arm of Hong Leong Investment Bank Bhd (HLIB Research) recalled that Pharmaniaga has offered to supply Sinovac vaccine to the Ministry of Health (MOH), to cater to recipients who favour receiving it as their booster shots.
“The group currently is in its final stages of discussion to register Sinovac as a booster shot with the National Pharmaceutical Regulatory Agency (NPRA) and expects approval to be granted soon,” HLIB Research said.
“Sinovac recipients will be eligible for a booster shot three months after they have completed their vaccination, and considering that majority of the Sinovac recipients have received their second dose between the month of June and September, therefore booster shot supplies would be needed from December onwards.”
The research arm noted that thus far, Pharmaniaga has collectively supplied more than 22 million doses of Sinovac vaccines to the MOH and private sector, therefore there would be circa 11 million individuals eligible for a booster shot.
Meanwhile, HLIB Research gathered that Sinovac recipients are only given a heterologous booster shot currently with the Pfizer booster dose administered to eligible persons.
“However, Johor DAP leader, Dr Boo Cheng Hau noted that about a fifth of the booster dose recipients have refused a Pfizer booster, as they favour receiving the same vaccine for their third dose.
“Based on our back of the envelop calculations, supplying 11 million doses to MOH could add circa RM12 million at the EBIT level.
“This is based on an estimated purchase price of US$11 (RM44) per dose and an EBIT margin of 2.5 per cent (three-year average) for Pharmaniaga’s logistics and distribution division.”
Looking ahead, HLIB Research expects the positive news to stimulate buying interest on Pharmaniaga, although at the current juncture, there is no clarity as to how many doses Pharmaniaga could potentially be supplying to the MOH.
“We continue to like Pharmaniaga for the vaccination of adolescents in Malaysia, potential use of Sinovac as booster shots, potential use of Sinovac for to inoculate children between age 5 to 12 and also potential export of Sinovac vaccines to other countries.”