APEX Healthcare Bhd, a KLSE second board candidate, is poised to expand its manufacturing capacity and product line upon its listing exercise.
Its managing director Dr Kee Kirk Chin said the group would be utilising RM4mil from the listing proceeds to enhance its plant and purchase new machinery and equipment.
Some RM3mil will be used to construct an additional building and storage space for its manufacturing division Xepa-Soul Pattinson (M) Sdn Bhd's 7-acre site at the Cheng Industrial Estate, Malacca.
Apex, a vertically integrated local pharmaceutical group, expects to generate RM14.26mil from its listing expected in late June.
"As a life sciences group, we build on our core values of service, quality and integrity to provide the best pharmaceutical healthcare,'' Kee said at an interview in Malacca. |
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He said Xepa-Soul Pattinson had spent about RM662,000 in research and development last year and would continue to ensure that its product quality and standards exceed the guidelines of the Ministry of Health.
Kee also said that the group's manufacturing processes adhered to the codes of good manufacturing practices (GMP), and its products are exported to 16 countries including Hong Kong, Singapore and the Middle East region.
"We launch five to eight new products a year and are always on the lookout for new markets, particularly in the Asean region,'' he noted.
Kee said the group would hope to take advantage of the Asean Free Trade Area (Afta) but was still awaiting confirmation of a standardised drug registration process in the region, which would paved the way for smooth intra-Asean healthcare exports.
In 1999, Xepa-Soul Pattinson exported 25% of its production for a sales value of some RM8.6mil. Exports contributed about 20% to the group turnover of RM108.7mil.
Apex is engaged in three principal pharmaceutical businesses of manufacturing, distribution and retail.
The group's manufacturing division has four main product group namely tablets & capsules, oral liquids, dermatologicals, and ophthalmics.
Kee said the division sold some 815,000 units of tablets & capsules last year worth some RM15.4mil while the oral liquids product group contributed RM12.45mil.
"We are among the top three manufacturer in the local market and are ranked fifth in terms of number of outlets,'' he added.
Kee noted that the group has over 200 products and its popular items are antibiotics and cough and cold medicines.
Some of the commonly known products available at its 20 Apex Pharmacy retail outlets nationwide include Normaten (anti-hypertensive), Sedilix (cough syrup), Sofilex (antibiotics), Avorax (anti-viral), and Zorinax (anti-fungal).
Expressing confidence in the group's business, Kee said Apex had a strong distribution channel via its five depots in peninsula Malaysia and two in Sabah and Sarawak.
Apex distributes a range of imported products such asDumex (ethical pharmaceuticals), Orion (ethical generics), Eurodrug (ethical pharmaceuticals), and Chauvin (branded ophthalmics).
The group is able to service about 4,000 wholesale customers which include private and public hospitals, pharmacies and supermarkets nationwide.
Its raw materials and components are mainly imported from Europe and the US while its bottle and packaging materials are locally sourced. Among the raw materials used include active materials, excipients and gelatine capsules.
"Since 1962, we have a mix product range for the retail market including vitamins, herbal remedies, dental care, skin care and first aid requisites.''
Kee said the retail sector had contributed about 10% to group pre-tax profits and plans were underway for new retail outlets.
Apex is the brainchild of its executive chairman Kee Tah Peng who started the business as a single retail pharmacy outlet in Malacca town.
MD Kee said the group was confident of turning in a better performance in its financial year ending Dec 31 following the strong demand for pharmaceutical and healthcare products in the country.
"Despite the strong competition, we are forecasting a pre-tax profit of RM9.67mil for 2000 against RM8.8mil made last year,'' he said.
Apex also expects to offer a gross dividend per share of 7 sen and a gross earnings per share of 22.3 sen for the financial year 2000.
For its listing exercise, Apex is offering a public issue of 9.51 million shares of RM1 each at RM1.50 each. |
