“With the growing demand in the Asia-Pacific, establishing halal manufacturing plants in Malaysia will greatly reduce the dependency on imported halal products and reduce the cost of logistics for the group,” said MIDF Research.
PETALING JAYA: The growing global Muslim population is set to provide a wider consumer base to Pharmaniaga Bhd
’s halal product portfolio as it moves to complete its halal vaccine manufacturing plant.
It claimed to have the world’s first halal vaccine manufacturing plant, which is expected for completion by the third quarter of 2023 and commercialisation in 2024.
“With the growing demand in the Asia-Pacific, establishing halal manufacturing plants in Malaysia will greatly reduce the dependency on imported halal products and reduce the cost of logistics for the group,” said MIDF Research.
The global halal pharmaceutical market is expected to be valued at US$160bil (RM690bil) by 2050, in tandem with the expected growth in the Muslim population with a five-year compounded annual growth rate of 14%.
Additionally, the Asia-Pacific Muslim population is expected to remain the largest halal pharmaceutical consumers, despite an estimated drop in population numbers from 2030 to 2050.
Pharmaniaga, through its wholly-owned subsidiary, Pharmaniaga LifeScience Sdn Bhd (PLSB), has installed a pre-filled syringe (PFS) filling line – the first of its kind in Malaysia.
The line is part of PLSB’s ongoing expansion plan to become the world’s first halal vaccine manufacturing plant, it said.
Additionally, the plant has commissioned other PFS packing equipment, including a de-nester, an automatic visual inspection (AVI) machine, a plunger insertion machine, a labelling unit and two-in-one combination unit of washer-steriliser.
Pharmaniaga also announced that its ongoing halal insulin project is currently 82% completed.
The insulin plant would be located in the same building used to manufacture insulin cartridges.
Meanwhile, the factory acceptance tests (FATs) for labelling and blister packing machines were completed in December 2022.
Other FATs for insulin such as dispensing booths, washer-steriliser, solution manufacturing system, cartridge filling line and AVI machine are scheduled to begin this month.
The research house did not make any changes to its earnings estimates since the commercialisation of the halal products by Pharmaniaga will not take place until the manufacturing plant is fully online.
It retains its target price at 77 sen a share, based on pegging a price-earnings ratio of 14 times to the revised earnings per share of 5.4 sen and maintained its “buy’’ call on the stock.
It said Pharmaniaga continues to display its efforts in penetrating the halal pharmaceutical market.
Adding to the incline in an ageing population, the group is also leveraging on the halal market’s demand to treat viral and comorbid diseases without compromising religious obligations.
Additionally, MIDF Research said the group would continue with its marketing plans of new products, notably supplements and traditional medicines and leverage on the upcoming retabling of Budget 2023 for the healthcare sector.
