KUALA LUMPUR (Oct 24): Duopharma Biotech Bhd has secured another six-month contract extension for the new approved products list (APPL) to supply pharmaceutical and non-pharmaceutical products to government hospitals and clinics.

The group’s wholly-owned Duopharma (M) Sdn Bhd received the letter of extension from Pharmaniaga Logistics Sdn Bhd (PLSB). PLSB is a wholly-owned subsidiary of Pharmaniaga Bhd, which is under Practice Note 17 (PN17) status.

“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,” said Duopharma.

The APPL contract, which expired in June, has been extended for six months from July 1, a Duopharma spokesperson confirmed when contacted.

In 2017, Pharmaniaga awarded the APPL contract to Duopharma to supply pharmaceutical or non-pharmaceutical products to government hospitals and clinics.

The contract initially covered a three-year period from Dec 1, 2017 to Nov 30, 2019, before it was extended three times to June 30, 2023. The contract contributes approximately 20% of Duopharma’s annual revenue.

For the second quarter ended June 30, 2023, Duopharma's net profit decreased by 23.11% to RM12.54 million from RM16.31 million, as quarterly revenue fell to RM167.52 million from RM181.74 million.

At Tuesday's close, Duopharma’s share price was up one sen or 0.83% to RM1.21, valuing the group at RM1.16 billion. The stock has declined over 26% since the beginning of the year.