KUALA LUMPUR: Pharmaniaga Bhd's manufacturing licence was revoked following critical findings over the storage and segregation of rejected and quarantined material and products, and the handling of rejected and recalled materials and products.

In a reply to a query from Bursa Malaysia, the company said today the critical findings were also over certain aspects of its premises and equipment.

The revocation order was issued to its unit Pharmaniaga Manufacturing Bhd after an audit was carried out between Feb 2 and 4 by the Pharmaceutical Services Division (PSD) of the Ministry of Health.

Pharmaniaga said it would  present all corrective actions taken to date as well as a plan of action to address the remaining audit issues to the PSD on March 8.

"With that, we plan to seek PSD's approval to conduct a follow up audit on the plant," it said.

It added the percentage contribution of manufacturing to the group's profit before tax based on the unaudited results for the financial year ended Dec 31, 2009 was 23%.

"For FY2009, the contribution of the manufacturing division to Pharmaniaga group's profit before tax was lower than FY2008 due to the disposal of fixed assets in Perak as well as gross profit margin achieved," it said.

On the effects of the revocation on the earnings per share and net assets per share of the group for FY2010, assuming the revocation is not withdrawn within this financial year, Pharmaniaga said its EPS would be 41.60 sen. If there had been no revocation, it would be 56.26 sen.

The group's net assets per share with the revocation would be RM3.88 sen and  RM4.03 without the revocation.

To address the issues raised by the PSD, the group says it will resolve all the critical issues immediately; respond to all other findings and provide a corrective action plan; and have regular meetings with the PSD to update the group's progress in addressing the matter.