KUALA LUMPUR (Feb 16): Duopharma Biotech Bhd (KL:DPHARMA) has received two letters of award worth a sum value of RM116.72 million to supply insulin products and insulin injections to the Ministry of Health (MOH) and its facilities.

In separate bourse filings on Monday, the pharmaceutical group said the first contract, valued at RM65.08 million, was awarded to its wholly owned subsidiary Duopharma Marketing Sdn Bhd and Biocon Sdn Bhd for the supply of recombinant human insulin formulations.

In a later filing, Duopharma said another wholly owned unit Duopharma (M) Sdn Bhd (DMSB) had received a contract valued at RM52.54 million for the supply of insulin injections to MOH facilities.

Under the first contract, Duopharma Marketing will act as the distributor, while Biocon will manufacture and supply the insulin products. The contract will run until May 15, 2026. The parties are required to provide an irrevocable performance bond of RM3.25 million within 30 days from the date of acceptance, said the group.

Duopharma Marketing is principally involved in the marketing and sale of pharmaceutical products. Biocon Sdn Bhd, a Malaysian unit of India-based Biocon Biologics group, manufactures recombinant human insulin and insulin analogues at its facility in Iskandar Puteri, Johor.

The second contract is expected to run until Feb 5, 2028, and DMSB is required to furnish an irrevocable performance bond of RM1.31 million within 30 days from the date of acceptance.

DMSB is engaged in the manufacture, distribution, import and export of pharmaceutical products and medicines.

The pharmaceutical group said Malaysia has an estimated 4.75 million diabetics, with about 450,000 patients receiving human insulin treatment at government hospitals and clinics. Duopharma said it hopes to improve diabetes management through its services.

The contracts are expected to contribute positively to Duopharma’s earnings and net assets per share for the financial year ending Dec 31, 2026, said the group.

According to AskEdge data, the company is currently trading at a price-to-earnings (PE) ratio of 16.6 times, which is higher than most peers where the ratio is applicable (not including those loss-making or with insufficient data).

This PE ratio is the lowest compared to its historical valuation in recent years, partly caused by an increase in earnings in the trailing twelve months.

The company's price to net asset value ratio of 1.9 times is higher than most peers including Kotra Industries Bhd (KL:KOTRA) and YSP Southeast Asia Holding Bhd (KL:YSPSAH) but lower than Pharmaniaga Bhd (KL:PHARMA), which is valued at 5.0 times its net assets.

At the end of the trading day on Monday, shares of Duopharma closed two sen or 1.37% higher to RM1.48. At its closing price, the group had a market capitalisation of RM1.42 billion. Year-to-date, the stock has been up 18.9%.

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