It will be expanding its pharmaceutical business after sorting out Carotech’s debts
It is on the recovery path after taking steps to sort out Carotech Bhd's debts and is looking to expand the pharmaceutical business in 2014.
After factoring in a non-recurring item, Hovid's third quarter pre-tax profit of RM18.4 million works out to be seven per cent lower than previous year's RM19.9 million.
Carotech was an associate company up to December 22 2011. It has now become a simple investment to Hovid.
In the last three years prior to 2013, Carotech faced difficulty as there was no working capital. One way to raise funds for Carotech is for Hovid to embark on a rights issue of new warrants.
Hovid is set to raise around RM11 million for Carotech's working capital. These warrants, having a five-year lifespan, will replace the original warrants that had expired.
It has been 17 months since Hovid was lifted from PN17 status on January 16 2012.
In Hovid's books, Carotech is written off to RM1. It is still resolving Carotech's debts with the banks and hope it can resolve this by the end of 2013.
Hovid's laboratories in Perak produce antibiotics, antidiabetics, antihypertensives, antimalarial and anti-inflammatory analgesics, ranging from skin care and hair care products to health beverages.
Its products are GMP-compliant and exported to more than 40 countries.
In the consumer market, Hovid is known for its popular Tocovid SupraBio health supplement and Ho Yan Hor Herbal Tea.
The Tocovid SupraBio health supplement is currently the consumer market leader for palm oil Vitamin E extract. Tocotrienols, which are most abundantly found in palm oil, are showing promise in clinical trials that they are capable of reducing risk of degerative diseases such as stroke, heart attack and cancer.
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