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What is Pharmally Pharmaceuticals? Who controls it?

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ABS-CBN News

<p>MANILA - Pharmally Pharmaceutical Corp, a company that supplied face masks, face shields and other medical equipment to the government, is facing allegations that its goods were overpriced. </p><p>Lawmakers have also questioned how a company that was less than a year old was able to secure multi-billion government contracts. </p><p>But what is Pharmally? </p><p>Based on documents from the Securities and Exchange Commission (SEC), the company was registered on Sept. 4, 2019. That year, it had zero sales and even reported a net loss of P25,550.</p><p>But in 2020, when the COVID-19 pandemic hit the country, Pharmally&#x27;s sales skyrocketed to nearly P7.5 billion pesos. </p><p>This was after Pharmally bagged P8.68-billion worth of contracts with the Department of Budget and Management (DBM) despite having a paid-up capital of only P625,000 in 2019. </p><p>Senator Franklin Drilon, a member of the Senate Blue Ribbon Committee, said the DBM did not exercise prudence when they closed a deal with Pharmally, which has no “track record.”</p><p>After the DBM deals, the company generated a gross profit of P393 million and a net income of P265 million in 2020. </p><p>Several lawmakers said the goods sold by Pharmally to DBM were overpriced. </p><p>&quot;Official records will show that it sold facemasks at a whopping P27.72, when other suppliers sold the same to PS-DBM [Procurement Service Office-DBM] at P13.5, P16, and P17.50 for the same period,&quot; Drilon said during a Senate hearing on the issue last week.</p><p>&quot;It sold test kits at P1,720 when it could be bought at P925. It sold PPEs [Personal Protective Equipment] at P1,910 each when its market cost is at P945,&quot; he added.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/08/27/21/drilon-flags-dbm-purchase-of-p868b-items-from-new-firm">Drilon asks DBM: Why spend P8.68B for &#x27;overpriced&#x27; items from company without track record?</a></li></ul><p>Based on SEC documents, Pharmally was headquartered in Units 8 and 9 on the 22nd floor of Fort Victoria Tower B in Fort Bonifacio, Taguig City.</p><p>When the Senate tried to serve a subpoena to Pharmally officials using that address, the building’s guard said that the units have been vacant since 2018. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/08/27/21/top-dbm-contractor-used-fake-addresses-senators">Senators flag DBM top contractor for using fake addresses in registration papers</a></li></ul><p>SEC documents also show that a Singaporean national named Huang Tzu Yen sits as chairman of Pharmally and controls 40 percent of the company. </p><p>The rest of the company is held by four Filipinos: Twinkle D. Dargani of San Juan City, sits as president with 10 percent ownership; Mohit C. Dargani of Taguig, sits as corporate secretary and treasurer with 30 percent ownership; Linconn Ong and Justine Garado of Taguig both sit as directors. Ong has 16 percent ownership while Garado has 4 percent. </p><div><a class="embedly-card" data-card-controls="0" href="http://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/08/31/ai-bl-pharmally-pharmacuetcal-corporation.pdf">Card</a> <script async="" src="//cdn.embedly.com/widgets/platform.js" charSet="UTF-8" type="text/javascript"></script> <a class="embedly-card" data-card-controls="0" href="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/08/31/fs-pharmally-pharmacuetcal-corporation.pdf">Card</a> <script async="" src="//cdn.embedly.com/widgets/platform.js" charSet="UTF-8" type="text/javascript"></script> <a class="embedly-card" data-card-controls="0" href="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/08/31/gis-pharmally-pharmacuetcal-corporation.pdf">Card</a> <script async="" src="//cdn.embedly.com/widgets/platform.js" charSet="UTF-8" type="text/javascript"></script></div><p>Pharmally’s cash balance at the end of 2020 was P44.9 million, the majority of which is being held in the company’s bank accounts. </p><p>As of the end of last year, Pharmally’s total assets amounted to almost P285 million with nearly P272 million comprised of current assets including trade and other receivables and inventory. </p><p>Total equity was over P265 million. The company also held P13 million in property and equipment. </p><p>Senators have accused former DBM Undersecretary Lloyd Christopher Lao, who oversaw the deal with Pharamally, of failing to conduct due diligence on the company. </p><p>Lao admitted that the DBM&#x27;s procurement service (PS-DBM) under his leadership last year &quot;failed to check on the articles of incorporation&quot; of the company in question.</p><p>President Rodrigo Duterte has criticized senators conducting the probe into Pharmally and insisted that there was nothing anomalous in the DBM deals. The President also defended ex-adviser and Davao-based businessman Michael Yang who has been linked to Pharmally.</p><p>Senators, however, have said that the Senate &quot;will not flinch&quot; in its investigation into the allegedly anomalous deals.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/08/31/21/senate-will-not-flinch-in-probing-pricey-supplies-ping">After Duterte&#x27;s latest vitriol, Lacson says Senate &#x27;will not flinch&#x27; in probe vs overpriced pandemic supplies</a></li>	<li><a href="https://news.abs-cbn.com/news/08/31/21/duterte-defends-michael-yang-as-senate-probe-looms">Duterte defends trader with alleged ties to pandemic supplier</a></li></ul><div><strong>- With a report from Warren de Guzman, ABS-CBN News</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1759846" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

Based on SEC documents, Pharmally was registered on Sept. 4, 2019. That year, it had zero sales and a net loss of P25,550. But in 2020, when the COVID-19 pandemic hit the country, Pharmally's sales skyrocketed to nearly P7.5 billion pesos. 