KUALA LUMPUR (June 9): Duopharma Biotech Bhd (KL:DPHARMA), whose share price has fallen 22% since mid-February, announced its unit has secured a RM155.28 million contract to supply insulin products to public hospitals and clinics nationwide.

In a filing on Tuesday, the pharmaceutical group said the government has accepted its wholly owned subsidiary Duopharma (M) Sdn Bhd (DMSB)'s tender offer and issued a letter of award (LOA) to the company.

The supply includes recombinant human insulin 100 IU/ml Penfill/Refill as a package comprising short-, intermediate- and premixed-acting formulations, as well as reusable insulin pens.

The contract will run for three years, starting from June 3, 2026 to June 2, 2029, Duopharma said.

Under the terms of the award, DMSB is required to furnish an irrevocable performance bond of RM2.59 million within 30 days from the acceptance of the LOA.

DMSB is required to supply the products within the prescribed timelines and quality specifications set by the government. Failure to do so could result in order cancellations or penalties under the contract terms.

The government may also terminate the contract under certain circumstances, including failure to provide the performance bond, delays in supply, non-compliance with tender requirements or product specifications, unauthorised equity transfers, as well as reasons related to public interest, security or national interest.

Duopharma pointed out that Malaysia has an estimated 4.75 million diabetics, with around 450,000 patients receiving recombinant human insulin treatment at government hospitals and clinics.

"The contract is expected to contribute positively to the company's future earnings until its expiry," it said.

Duopharma, in which Permodalan Nasional Bhd controls a 44.11% stake, 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, which retreated from the human insulin market in 2024. Novo’s retreat left Duopharma as the sole supplier last year.

Duopharma's shares settled unchanged at RM1.21 on Tuesday, giving it a market capitalisation of RM1.16 billion. According to AskEdge, the stock is currently trading at an average price-earnings ratio of 12.5 times — the lowest in five years.