This article first appeared in The Edge Malaysia Weekly on October 13, 2025 - October 19, 2025

Copper wire and rod maker Ta Win Holdings Bhd’s (KL:TAWIN) deal to sell a substantial stake in Royce Pharma Manufacturing Sdn Bhd has lapsed, reflecting a common predicament among companies that announced purchases of pharmaceutical firms during the pandemic.

About five years ago, during the Covid-19 pandemic, Ta Win acquired a 32.5% stake in the loss-making pharmaceutical products manufacturer and distributor from Poly Lab Sdn Bhd and Jelita Serbaneka Sdn Bhd for RM20.85 million. 

Then in June 2022, it entered into an agreement to sell the block of shares back to Jelita Serbaneka and Poly Lab at the same price. Jelita Serbaneka is the largest shareholder of Royce Pharma at 54.46%, while Farmasi Express (M) Sdn Bhd holds an 11% stake.

The share sale had to be aborted because both Poly Lab and Jelita Serbaneka were unable to secure financing. If the disposal had gone through, Ta Win would still have retained a 1.35% stake in Royce Pharma, as it currently holds 33.85% interest.

A Companies Commission of Malaysia search shows that Royce Pharma recorded a net loss of RM8.4 million for the financial year ended June 30, 2024 — the only available financial set in the report. The net loss had widened from RM6.1 million for the financial year ended Dec 31, 2019.

Ta Win first announced the Royce Pharma acquisition in 2020. It said then that it wished to tap Covid-19-related opportunities, but now it wants to focus on its main copper business as there is no longer a bottleneck and shortage situation in the pharmaceutical industry.

Will Ta Win continue to look for a buyer? It will be an uphill task if Royce Pharma can’t stop bleeding red ink. For now, the RM20.85 million Ta Win spent on the acquisition is as good as burnt.

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