KUALA LUMPUR (May 21): Duopharma Biotech Bhd (KL:DPHARMA) is awaiting the formalisation of a new insulin supply contract from the Ministry of Health (MOH), with final documentation still pending.

Group chief executive officer Wan Amir-Jeffery Wan Abdul Majid said the tender outcome has already been determined with only the letter of acceptance yet to be issued. This follows the expiry of a contract to supply recombinant human insulin valued at RM65.08 million on May 15.

“We are confident of securing the three-year contract. The results are already out, and what remains pending is the letter of acceptance,” he said, adding that any announcement will be made in due course.

Duopharma has long been a key supplier of human insulin to the government as the primary distributor for India’s Biocon Biologics, which manufactures insulin locally in Johor.

It reportedly fulfilled about 80% of the government's needs previously, with the remainder sourced from Danish pharmaceutical giant Novo Nordisk, who retreated from the human insulin market in 2024. Novo's retreat left Duopharma as the sole supplier last year.

“We were able to supply the [government's] full-year requirement last year, which resulted in a higher revenue contribution. Moving forward, supply is normalising as we have fulfilled demand in 2025. Overall demand remains stable at around 21 to 22 million cartridges annually,” he said at a media briefing after the group’s annual general meeting on Thursday.

To prevent a single point of failure, following production issues at Biocon in 2024 that coincided with Novo's retreat that resulted in an acute human insulin shortage nationwide, the MOH has now adopted a dual-supplier model.

This provided Pharmaniaga Bhd (KL:PHARMA), which has a biopharmaceutical plant in Puchong, a chance to play a role. The group has also been awarded a share of the common human insulin segment, Wan Amir-Jeffery acknowledged. However, he did not disclose the market share division under the new tender.

He also shrugged off the market split's impact on the group’s financial performance as "marginal”, with Duopharma's supply of “insulin volume and value are expected to revert to levels seen prior to 2025".

“This human insulin is not like some of our own manufactured products, as it is traded. Generally, margins are higher for manufactured products, while traded products are significantly lower. As such, the bottom-line contribution is relatively moderate. In terms of replacing the revenue, we do not expect this to be a major issue,” he said.

Meanwhile, Duopharma is focusing on other products, including insulin analogues used to manage diabetes — including Type 1, Type 2 and gestational diabetes — by controlling blood sugar levels.

“We have secured a contract for insulin aspart valued at about RM52 million over two years, or roughly RM27 million annually. This supports our strategy of replacing revenue while moving towards higher-margin products, as insulin analogues offer longer-lasting effects and are more value-accretive to our portfolio,” he added.

Wan Amir-Jeffery also disclosed that the group is in talks to forge partnerships across Asean, including China, as it looks to expand its export footprint.

China remains a key area of focus, he said, given its rapid growth and increasing production of innovative drugs, particularly new chemical entities.

“You cannot ignore China, given the pace at which it is producing innovative drugs. Our strategy is to take a balanced approach in selecting partners, particularly in terms of onboarding technologies and driving product differentiation — whether in small molecules, biologics or other specialised areas,” he said.

“The partnerships must align with our identified therapeutic focus areas, while offering stronger market access and a wider range of product offerings,” he added.

Asean remains the group’s largest export market, accounting for about 45% of total export revenue last year. This is followed by the Middle East and North Africa (Mena) (21%), Asia-Pacific (Apac) (20%), and Oceania (14%), according to the group’s annual report. 

At market close on Thursday, Duopharma shares slipped one sen lower to RM1.26, giving it a market capitalisation of RM1.21 billion.

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