Pryce Corp. exits pharmaceutical unit to sharpen focus on LPG and industrial gases

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Pryce Corp. exits pharma unit

Highlights

Pryce divests P7 million worth of Pryce Pharmaceuticals, Inc. shares to PGI Retirement Fund, Inc. to concentrate on core LPG and industrial gases businesses.
Pryce's LPG segment accounts for P10.65 billion, or 90.8%, of first-half revenue, dwarfing the pharmaceutical unit's P24 million contribution and keeping net income steady at P1.93 billion.
Shares in Pryce surge 14.42% to P18.88 after the company reports supply disruptions in LPG resolved by June and outlines 2026–2027 industrial gas expansion plans.

Divestment plan and portfolio focus

As reported by BusinessWorld Online, Pryce said in a regulatory filing on Thursday that it is removing its pharmaceutical arm to streamline operations and concentrate on core businesses. The company said it executed a deed of assignment transferring P7 million worth of shares in Pryce Pharmaceuticals, Inc. to PGI Retirement Fund, Inc., a non-stock corporation registered with the Securities and Exchange Commission.

Pryce described the financial impact of the divestment as minimal. It said the move allows it to focus more on liquefied petroleum gas and industrial gases under the PRYCEGAS brand, while continuing its Mindanao-based real estate and memorial park operations through Pryce Gardens.

Pryce Pharmaceuticals is engaged in the wholesale and retail trading of pharmaceutical products. In the first half, the segment contributed P24 million, or 0.2%, of Pryce’s total revenue of P11.72 billion, making it the smallest contributor among the company’s business lines.

Earnings mix and expansion outlook

The company’s LPG business generates P10.65 billion, or 90.8%, of total revenue in the first half, while industrial gases contribute P690 million, or 5.9%. Real estate and memorial park operations add a combined P210 million, or 1.8%, and net income is unchanged year on year at P1.93 billion.

Pryce said LPG sales volume in April and May is affected by supply and pricing disruptions linked to the Middle East conflict, but returns to pre-disruption levels by the second half of June. The company says strong growth is expected in the second half of 2026, while it also targets completion of its Davao air separation plant by early 2027 as part of its industrial gas expansion.

Shares in Pryce rise 14.42% to close at P18.88 apiece on Thursday.

Our earlier coverage of the planned Kuching LNG terminal explained how Petros and Höegh Evi agreed to jointly develop, own and operate an FSRU-based regasification facility under the Kuching Low Carbon Hub. We noted that the project is designed to strengthen energy security and support industrial growth in Kuching and Sarawak, with first gas targeted by the end of 2029.

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