PETALING JAYA: Duopharma Biotech Bhd
is expected to see steady revenue growth in the years ahead, driven by the recovery in sales at its consumer healthcare (CHC) segment and the recent renewal of approved product purchase list (APPL) tender.
The pharma company is also betting on new product offerings and new markets to drive sales. RHB Research noted Duopharma had seen an encouraging pick-up in local sales in the recent quarter, indicating sluggish consumer demand for CHC products had bottomed.
“Moving forward, the group expects the CHC segment growth to be largely driven by analgesic products (namely painkillers) as well as its regional expansion to drive vitamin C sales (namely Flavettes, Champs and Proviton).
“It also intends to expand its CHC product offerings range to reduce the reliance on vitamin C sales,” the research house noted after an analyst briefing with Duopharma.
The pharma group has set up its regional office in Indonesia with the immediate objective to provide contractually-manufactured oral solid dosage products to the Indonesian market, RHB Research added.
In the first quarter ended March 31 2024 (1Q24), Duopharma’s net profit surged 79.7% quarter-on-quarter to RM15.3mil while revenue grew by 15.2% to RM193mil on higher sales from all sectors, particularly from the government segment.
TA Research noted the public sector has contributed 47% of 1Q24 revenue as compared to 44% in financial year 2023.
For 2Q24, the research house expects a further improvement in Duopharma’s performance, driven by the recently secured new APPL contracts to supply 86 pharmaceutical and non-pharmaceutical products from Pharmaniaga Bhd that is worth RM578.1mil.
“These new APPL contracts would help to mitigate the sluggish consumer healthcare segment, which suffered 2% to 8% year-on-year revenue decline in 1Q24,” TA Research forecast.
The research firm added Duopharma’s current insulin contract (April 2022 to April 2025) with the government that has a total contract value of RM375mil is pending renewal.
It understands the insulin tender had closed with bids from Biocon via Duopharma and Novo Nordisk.
The outcome is expected to be announced after September as discussion on the insulin tender would likely begin after the finalisation of all APPL contracts in September 2024.
