KUALA LUMPUR: Duopharma Biotech Bhd, which recorded stronger earnings in the third quarter ended Sept 30,2019, will push ahead with its foray into the specialty products as one of its strategies to create a pool of niche products.
It said on Friday it had recently obtained registration approval and launched Erysaa, an Erythropoeitin (EPO) product. EPO is the protein present in the human body that adjusts the red blood cell (RBC) generation in accordance with the oxygen requirement of the human body.
Recombinant version of EPO is used as the therapeutic agent of all anemia patients, acute anemia in kidney dialysis patients, anemia due to anti-cancer chemotherapy and patients requiring blood transfusion.
However, Duopharma pointed out the recent strengthening of US dollar globally poses challenges as it affects its production and other operational costs.
“It is expected to put pressure on manufacturing margin and hence our profit thereof, ” it said.
The company expected the higher allocation for health services of RM29bil for 2020 under the Budget 2020, including RM10.8bil to restore clinics and hospitals as well as purchase of medicine and medical equipment, to bode well for it.
In the 3Q ended Sept 30,2019, its net profit increased by 20.9% to RM14.86mil from RM12.28mil a year ago. Its revenue increased by 13.5% to RM142.85mil from RM125.84mil. Earnings per share were 2.2 sen compared with 1.86 sen.
For the nine months, its net profit climbed by 30% to RM43.24mil from RM33.27mil. Its revenue increased by 14.5% to RM438.71mil from RM383.09mil.
Duopharma said the stronger financial performance was due to higher demand from private and public health sector. The group's profit before tax improved significantly on-year mainly due to higher sales and also lower provision of inventories in first nine months of 2019.
Did you find this article insightful?