PETALING JAYA: Duopharma Biotech Bhd has received a contract extension until year end from Pharmaniaga Bhd’s unit for the new approved products purchase list (APPL) to supply pharmaceutical and non-pharmaceutical products to government hospitals and clinics.
In a filing with Bursa Malaysia today, Duopharma confirmed its subsidiary Duopharma (M) Sdn Bhd received the letter of extension from Pharmaniaga Logistics Sdn Bhd, a wholly-owned subsidiary of Pharmaniaga, which has been classified as a Practice Note 17 (PN17) company.
“The contract period of the supply agreement for the supply of the products listed in the letter has been further extended until Dec 31, 2023 or such other date as may be directed by the government, which could be earlier or later,” it said.
In May 2023, Duopharma managing director Leonard Ariff Abdul Shatar stated the company is expected to secure an additional six-month contract extension, likely in late June.
Pharmaniaga had awarded the APPL contract to Duopharma to supply pharmaceutical or non-pharmaceutical products to government hospitals and clinics in 2017.
The contract previously covered a three-year period from Dec 1, 2017 to Nov 30, 2019, which was later extended three times to June 30, 2023.
The contract contributes approximately 20% of Duopharma’s annual revenue.
For the second quarter ended June 30 (Q2 FY2024), Duopharma’s net profit fell 23% to RM12.5 million from RM16.3 million as quarterly revenue dropped to RM167.6 million from RM181.7 million.
Duopharma’s share price ended one sen or 0.83% higher at RM1.21 today, giving it a market capitalisation of RM1.16 billion.