KUALA LUMPUR (Oct 30): Duopharma Biotech Bhd (KL:DPHARMA) has secured five additional supply contracts from Pharmaniaga Bhd (KL:PHARMA), totalling RM87.66 million, to provide 10 pharmaceutical and non-pharmaceutical products to government offices and facilities that Pharmaniaga operates.

All additional contracts will remain valid and binding until Dec 31, 2026, or any other date specified by the government, Duopharma said in a filing with Bursa Malaysia.

Pharmaniaga’s wholly owned subsidiary Pharmaniaga Logistics Sdn Bhd awarded four letters of offer (LOOs) to Duopharma (M) Sdn Bhd, and one LOO to Duopharma Manufacturing (Bangi) Sdn Bhd.

This follows Duopharma’s April announcement that it had secured 11 LOOs to supply 86 pharmaceutical and non-pharmaceutical products, valued at RM578.1 million. 

With these five additional supply contracts, Duopharma’s total supply contracts now stands at 96 products, with a cumulative contract value of RM665.76 million.

Duopharma is 44.11% owned by Permodalan Nasional Bhd (PNB), while the Employees Provident Fund (EPF) holds an 8.58% indirect stake in the group.

For the six months ended June 30, 2024 (6MFY2024), Duopharma’s net profit decreased by 9.11% to RM31.97 million, from RM35.17 million in the same period a year ago (6MFY2023), impacted by changes in product mix, higher operational costs related to the full operation of its newly completed K3 facility, increased finance costs, and unfavourable exchange rates.

However, revenue for 6MFY2024 rose by 11.77% to RM411.29 million, from RM367.99 million, driven by stronger sales in the prescription pharmaceutical, ethical specialty, and export segments.

At Wednesday’s midday break, shares of Duopharma declined three sen, or 2.33%, to RM1.26, giving it a market capitalisation of RM1.24 billion.

Pharmaniaga shares increased by 1.5 sen, or 4.05%, to 38.5 sen, valuing the company at RM533.3 million.