CCMD To Become Malaysia's Largest Pharmaceutical Manufacturer
Klang – 11 Mar 2015 -CCM Duopharma Biotech Berhad (CCMD) looks set to become one of Malaysia's largest pharmaceutical manufacturers following its purchase of six pharmaceutical units from parent company, Chemical Company of Malaysia Berhad (CCM).
The deal which is valued at RM245.1 million will see CCMD take over CCM's pharmaceutical arm which includes CCM Pharmaceuticals Sdn Bhd, CCM Pharma Sdn Bhd, Innovax Sdn Bhd, Upha Pharmaceutical Manufacturing (M) Sdn Bhd, CCM International (Philippines) Inc and CCM Pharmaceuticals (S) Pte Ltd.
The acquisition which has been several years in the planning will allow CCMD to enhance its product offerings and scale via the combined production facilities.
Speaking at the Extraordinary General Meeting (EGM) to obtain shareholder approval for the acquisition, En Leonard Ariff Abdul Shatar, CCMD Chief Executive Officer said that the Group was confident that the deal will be beneficial for both CCMD and CCM and bring value to their shareholders.
"The acquisition would give us greater manufacturing capacity and flexibility to cater to the growing demand for generic medicines, allowing us to bid for larger contracts," he added.
Leonard also said that the Company is confident of keeping its margins healthy as it ventures into new niche segments of the industry. This includes biotherapy and biologics, specifically erythropoietin (EPO) and insulin.
CCMD will undertake a renounceable rights issue of 139.48 million new shares at RM1.40 each to raise as much as RM195.27 million to fund the acquisition while the remaining will be being channeled towards capital expansion.
CCMD is a subsidiary of Chemical Company of Malaysia Berhad which is listed on the main market of Bursa Malaysia and is a key player in the fertilizers, chemicals and pharmaceuticals industries.
About Chemical Company of Malaysia Berhad (CCM)
CCM, Malaysia's largest generic pharmaceutical and compound fertilizers manufacturer, is listed on the main market of Bursa Malaysia and is a key player in the fertilizers, chemicals and pharmaceuticals industries. CCM turned 50 in 2013, celebrating five decades of commitment to enhancing the quality of life for all Malaysians. As CCM forges ahead, the Group will continue to strive for innovation and empower its employees in order to ensure product quality and customer satisfaction for years to come.