Like a rainbow after the rain, Pharmaniaga's share price saw a spike in the trading session on Bursa Malaysia today.
This was affected after Pharmaniaga obtained a letter of acceptance (LoA) from the Ministry of Health to supply 6 million doses of Sinovac vaccine.
At 9.18am, Pharmaniaga shares rose 1.65% or 1.5 sen to 92.5 sen worth RM1.21 billion.
Based on the LoA, Pharmaniaga is requested to start providing Sinovac vaccine at an immediate and complete rate by the end of August.
"This LoA will increase the total supply of Sinovac vaccine accumulated for the National Covid-19 Immunization Program (NIP) to 20.4 million doses," he said.
MIDF Research placed a buy recommendation on Pharmaniaga at 91 sen with a higher price target of 98 sen from 95 sen.
That factor is supported by the additional supply of vaccines which is seen to have a material impact on Pharmaniaga’s revenue in the future.
Looking at the order price of Sinovac vaccine in Indonesia (approximately RM60 per dose at the Indonesian vaccine ceiling price), an additional 6 million vaccine production by Pharmaniaga Lifescience Sdn Bhd will increase revenue by around RM300 million.
This positive outlook will indirectly help Pharmaniaga's better financial performance with the continued increase in the supply of Sinovac vaccine to NIP.
The sale of vaccines to the private sector, GLCs and state governments in the future will also contribute to more widespread vaccination.
