DUOPHARMA Biotech Berhad’s wholly-owned subsidiary Duopharma Marketing Sdn Bhd (DMktg) and India’s Biocon Ltd’s local unit Biocon Sdn Bhd have accepted a revised Letter of Award (LoA) from the Ministry of Health (MoH) relating to the supply of Insugen.
It is a recombinant human insulin product developed by Biocon for the treatment of diabetes mellitus, under the MoH’s procurement by way of direct negotiation.
Under the revised LoA, the RM375.17 million contract runs for three years commencing Apr 29, 2022 until Apr 28, 2025. The previous LoA was for a period starting from Dec 17, 2021 until Dec 16, 2024.
In a filing to the stock exchange on Apr 25, Duopharma Biotech said DMktg and Biocon have acknowledged receipt and acceptance of the revised LoA. A binding contract will be created between the government, DMktg and Biocon.
Duopharma Biotech had announced in December last year that the government had accepted the tender offer from DMktg to supply the insulin product. The revised LoA will allow DMktg to provide distribution services for the supply of Biocon’s human insulin formulation to all MoH’s hospitals, district health offices and health clinics.
“With an estimated 3.9 million diabetics in Malaysia, of which about 420,000 patients are treated using human insulin in government hospitals and clinics, DMktg and Biocon hope to improve diabetes management in the country by providing high quality and cost-effective biosimilar insulins,” Duopharma Biotech said in a statement.
Duopharma Biotech was incorporated in 2000 and is one of Malaysia’s leading pharmaceutical companies listed on Bursa Malaysia.
The contract is expected to contribute positively to its future earnings for the financial years ending Dec 31, 2022, 2023, 2024 and 2025.