Pharmaniaga Mulls Changes in Business Strategy in China (Malaysia)
This article was originally published in PharmAsia News
Executive Summary
Malaysia state-owned pharmaceutical company Pharmaniaga is reevaluating its China strategy after incurring a 21.5 million RM loss in fiscal 2006 at its Chinese operation. They blame the loss on escalating costs for distribution, and on changing pharmaceutical regulations in China. In 2005 Pharmaniaga purchased a 40 percent stake in China-based Wuxi Worldbest Treeful Pharmaceutical. Pharmaniaga's total fiscal 2006 net profit fell by over 100 percent compared to the previous year to a profit of 14 million RM, on 1.1 billion RM in revenue. Pharmaniaga Chairman Datuk Azman Yahya says the Chinese market remains promising and "big." (Click here for more