KUALA LUMPUR: Pharmaceutical and healthcare products manufacturer Kotra Industries Bhd (KIB) is actively seeking to partner with companies with a strong presence in biopharmaceuticals to expand its product range to cater to domestic and international markets.
Managing director Poing Tech Onn said the company's new partnership aims to expand the production of its current four injectable production lines and aseptic operations, which will expedite the technology migration process.
"During the financial year ended June 30, 2023, we launched three prescription products, namely, Axcel Etoricoxib 90mg and 120mg tablet, and Axcel Clopidogrel 75mg.
"Through our increasing portfolio of products registered, we are confident of sustaining our competitive advantage in this industry.
"To complement our existing product portfolio, we intend to expand our portfolio in new therapeutic areas," he said in the company's annual report filed with Bursa Malaysia.
He said local generic drug sales will continue to rise in the coming years as generic drugs are significantly more affordable than innovators' products.
"Therefore, we see room for the local generic drug market to grow, and we intend to capitalise on it," he said.
The Melaka-based company has been offering a wide range of healthcare products of over-the-counter (OTC) supplements, nutritional products, and pharmaceutical products in various dosage forms, carving its market niche via three main brands, namely, Appeton, Axcel and Vaxcel.
Piong said the company is currently using only 35-40 per cent of its manufacturing capacity, and the ample excess capacity, coupled with advanced infrastructure and resources, allows KIB's manufacturing facility to fulfill significant product orders and satisfy market needs effectively.
"As we look towards FY24, KIB has begun work on the construction of the new automatic warehousing facilities and the set-up of three new manufacturing lines.
"The total cost of these projects is estimated to be RM160 million, and the ongoing construction of the 202,492 sq ft warehouse is expected to be completed by the end of 2024 to cater for storage and warehousing needs and replace the current warehouse, which has reached more than 90 per cent of its capacity since its establishment in 1997.
The set-up of the three new manufacturing lines will be for the manufacturing of products with different dosage forms, which the company currently does not have.
"We believe the new lines will help reduce Malaysia's reliance on imports and propel our local pharmaceutical industry while at the same time sustaining the nation's medicine supply as well as the company's opportunities for growth," Piong said.
For the financial year ended June 30, 2023, KIB registered a revenue growth of 16.5 per cent to RM242.2 million from RM207.9 million in FY22, resulting from the high demand for pharmaceutical products in both the local and overseas markets.
The higher revenue was primarily attributed to higher sales orders from customers who replenished their stocks when the economy reopened.
"The sustained economic recovery and increasing customer demand created sales opportunities for us, and we capitalised by responding quickly to satisfy the needs of our customers.
"As such, our pharmaceutical product sales contributed 56 per cent of the revenue and continue to maintain a strong market presence for now, while the remaining 44 per cent of revenue consists of sales of OTC products," Piong said.