Initiatives and measures to manage operational costs in 2020 have paid off for one of Malaysia’s leading pharmaceutical companies, Duopharma Biotech Bhd.
Its group net profit rose six per cent to RM58.61 million for its FY Dec 31, 2020 against RM55.27 million the previous year. For its fourth quarter ended Dec 31, 2020, its net profit rose 34.6 per cent to RM16.2 million against RM12.03 million in the same quarter the previous year.
This rise in 2020 profit comes despite a nominal drop in revenue of 1.1 per cent to RM569.9 million from RM576.46 million in 2019. For the fourth quarter 2020, revenue dipped 2.7 per cent to RM134.09 million from RM137.76 million previously.
Duopharma declared declared a second interim dividend of six sen per share amounting to RM42.36 million.
Group Managing Director Leonard Ariff Abdul Shatar said, Duopharma’s one-year extension for the supply and delivery of human insulin products to the government with an additional value of RM19.63 million will augur well for the group.
It has also received a 25-month extension for the supply of pharmaceutical and/or non-pharmaceutical products to hospitals, clinics and others under the government.
“The extensions augur well for the Duopharma Biotech Bhd Group as these stabilise a significant portion of group revenue. With this assurance, it places us in a better position to mobilise our resources to intensify our foray into specialty and niche products,” he said.
Duopharma Biotech also recently entered into a term sheet agreement with the government to supply 6.4 million doses of the Covid-19 vaccine known as Sputnik V developed by the Gamaleya National Research Institute of Epidemiology and Microbiology.
The company has signed a term sheet agreement with the Russian Direct Investment Fund to secure the 6.4 million doses of Sputnik V. Should the definitive supply agreement be successfully executed and the vaccine approved by the Drug Control Authority, the supply of vaccine is expected to contribute positively to the future earnings of the group for the financial year ending Dec 31, 2021.