KUALA LUMPUR: Duopharma Biotech Bhd saw its net profit in the fourth quarter ended Dec 31,2020 climb by 34.5% to RM16.19mil from RM12.03mil a year ago mainly due to the group's initiatives and measures in managing operational costs.
In an announcement to Bursa Malaysia on Monday, it reported its revenue was RM134.08mil compared with RM137.75mil. Earnings per share were 2.29 sen compared with 1.76 sen.
For FY20, the board of directors declared a second interim dividend of six sen (2019: a final dividend of five sen per share) equivalent to RM42.36mil (2019: RM 34.22mil).
In FY ended Dec 31,2020, its net profit rose by 6% to RM58.61mil from RM55.27mil in FY2019. Its revenue was slightly lower at RM569.90mil compared with RM576.46mil.
Duopharma Biotech group managing director Leonard Ariff Abdul Shatar attributed the stronger performance due to the group's initiatives and measures in managing operational costs.
He expected the company’s financial performance to be enhanced this year following the extension of the contract period of the off-take agreement for the supply and delivery of human insulin products to the government by one year from Dec 2,2020 until Dec 1,2021 with an additional contract value of RM19,625,100.
He added the contract period of the supply agreements for the supply of pharmaceutical and/or non-pharmaceutical products to hospitals, clinics and others under the government was extended for 25 months, starting on Dec 1,2019 until end-2021.
“The extensions augur well for the Duopharma Biotech as these stabilise a significant portion of group revenue. With this assurance, it places us in a better position to mobilise our resources to intensify our foray into specialty and niche products, ” he said.
Leonard Ariff also said Duopharma Biotech recently entered into a term sheet agreement with the government to supply 6.4 million doses of the Covid-19 vaccine known as "Sputnik V" developed by the Gamaleya National Research Institute of Epidemiology and Microbiology.
The company also signed an agreement with the Russian Direct Investment Fund to secure the 6.4 million doses of "Sputnik V". RDIF is the appointed marketing agent for Gamaleya for all international markets.