PETALING JAYA: Duopharma Biotech Bhd
’s shares gained 6.8% yesterday on news that the company has secured contracts worth RM578.1mil for the supply of pharmaceutical and/or non-pharmaceutical products.
Closing at RM1.26, the counter was up eight sen, off an intra-day high of RM1.29.
Duopharma on Tuesday announced that it had accepted 11 letters of offer from Pharmaniaga Logistics Sdn Bhd for the supply of 86 pharmaceutical and/or non-pharmaceutical products worth RM578.1mil to offices and facilities operated and controlled by the government.
The pharmaceutical company said all the contracts would remain valid and binding until Dec 31, 2026 or such other date as directed by the government.
TA Research said while the contracts would be positive for Duopharma, the win was not a surprise development, noting the company’s management had earlier shared that price negotiations for the new approved products purchase list (APPL) contract were concluded in February 2024.
“We believe that the 86 stock keeping unit (SKUs) won (versus 50 SKUs previously) will bode well for the group,” the brokerage explained in a research note yesterday.
The research house said it maintained its APPL sales contribution forecast for Duopharma at RM198mil for 2024 and RM217mil for both 2025 and 2026, even after incorporating the latest contracts.
TA Research maintained its “buy” call on Duopharma, with an unchanged target price of RM1.47, pegged to a price-earnings multiple of 16 times estimated FY25 earnings.
