CCM plans to go into more niche areas

Group managing director Leonard Ariff Abdul Shatar(pic) said biosimilar products currently contributed 22% of total revenue, and the company planned to gradually increase it to more than 25% through erythropoietin (EPO) treatment registration

SHAH ALAM: CCM Duopharma Biotech Bhd, which has received shareholders' nod for a name change as part of its corporate rebranding exercise, plans to enter into more niche areas with less competition in order not to be reliant on its generic drug portfolio.

Group managing director Leonard Ariff Abdul Shatar said biosimilar products currently contributed 22% of total revenue, and the company planned to gradually increase it to more than 25% through erythropoietin (EPO) treatment registration.

(Biosimilar products that are very similar but not identical to other licensed biological products, unlike generic medicines that are considered equivalents.)

He said Duopharma was looking to supply EPO for kidney treatment as well as more oncology (cancer treatment) products to the government.

“The cost of medicines is still high and we are looking forward to introduce biosimilar products in Malaysia to bring down patients' cost not only in the private sector but also government spending to acquire the medicines,” he told a media briefing here to unveil its new name and logo.

To be known as Duopharma Biotech Bhd by April, the company is undertaking a rebranding initiative following the demerger from its then-parent company, Chemical Company of Malaysia Bhd, in December 2017.

Leonard said the government allocated a higher sum for healthcare under Budget 2019 but the breakdown of allocation for hospitals and pharmaceuticals was vague.

“Anecdotal evidence seems to suggest additional money has been allocated for medicines, and in the next two years it would be for biosimilars and oncology would be the big driver of Duopharma's results,” he said.

The company allocated three % of its revenue annually on research and development, Leonard said, adding that it also did corporate venture capitalism by investing in equities in order to gain access to quality technologies. Duopharma, which develops, manufactures and markets generic drugs and branded healthcare products, announced on Monday it made a 12% higher net profit of RM47.64mil on revenue of RM498.72mil for the financial year ended Dec 31, 2018. — Bernama