KUALA LUMPUR: Duopharma Biotech Bhd, which reported improved earnings in the second quarter, is optimistic about its outlook for the rest of year on higher public spending in the healthcare sector.
The drugmaker is also working to expand its niche product business.
Duopharma Biotech, on Thursday, announced a net profit of RM14.7mil in the three month ended June 30, compared with RM13.9mil made a year earlier.
Revenue, however, slipped slightly to RM143.3mil.
"Although 2020 is proving to be more challenging than previous years, we continue to remain cautiously optimistic of our FY2020 performance," group managing irector Leonard Ariff Abdul Shatar said in a statement today.
He confirmed that Duopharma Biotech had been informed that the contract period for the supply of pharmaceutical and/or non-pharmaceutical products to hospitals, clinics and others under the government have been extended for twenty-five months, commencing Dec 1, 2019 until Dec 31, 2021.
Also, the contract period for the supply of human insulin formulations has been extended for one year until Dec 1, 2020.
About 50% of Duopharma Biotech's sales are to the public sector.
“These extensions will help to stabilise a significant portion of the Group’s revenue for the said period," Leonard Ariff said.
"This will also enable the Group to mobilise our resources to intensify our foray into specialty products as one of our strategies moving forward to create a pool of niche products” he added.
The company's the new Highly potent Active Pharmaceutical Ingredients (HAPI) plant is in full operational mode with the manufacture and supply of its first product, Letrozole (a cancer drug), to both the private market and for government tender.
“Concurrently, we are preparing for the technology transfer process to Duopharma Biotech of a second product during August 2020.” Leonard Ariff said.
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