PHARMANIAGA Bhd's pre-tax profit rose 74.5 per cent to RM99.1 million for the nine months ended September 30 2012, on higher sales volume and better operational efficiencies.

The pharmaceutical group achieved RM1.3 billion revenue for the nine-month period, 15.3 per cent higher than the corresponding period last year.

In a filing with Bursa Malaysia, Pharmaniaga said higher sales volume to the government sector, coupled with improvement in operational efficiencies in both the domestic and overseas businesses, had contributed to the increase in revenue for the group.

The logistics and distribution division posted pre-tax profit of RM58.6 million against last year's corresponding period of RM44 million as the main revenue contri-butor, the concession business, achieved higher sales volume, coupled with improvements in operational efficiences.

Pharmaniaga's manufacturing division recorded higher pre-tax profit of RM40.5 million, compared with RM12.8 million in the same period last year, led by improvement in manufacturing productivity and efficiency of the existing plants.

On prospects, Pharmaniaga said the Malaysian pharmaceutical industry remains reasonably bright.

It said the growing healthcare needs and aging population are factors that will ensure a steady growth for the industry.

"Additionally, the Malaysian government continues to be a major purchaser of generic drugs in their quests to reduce the cost of healthcare financing. This should augur well for the manufacturing division as a leading general pharmaceutical manufacturer in the country," Pharmaniaga said.

Going forward, the company said the concession business is expected to remain the main growth driver and overseas operations are expected to drive the group's growth for the foreseeable future.

Pharmaniaga said that in view of the patent expiry of blockbuster drugs, coupled with escalating healthcare costs, it has taken positive steps in strengthening its research and development team.

The group is also investing in the development of a new range of pro-ducts in anticipation of demand for generic drugs.