PETALING JAYA: TA Research expects Duopharma Biotech Bhd
’s revenue from its public-sector segment to increase to 53% this year (FY25) following a recent contract win to supply additional products to the government via Pharmaniaga Logistics Sdn Bhd.
Public-sector segment’s revenue contribution for Duopharma was 50% and 44% in FY24 and FY23, respectively.
Duopharma, in which Permodalan Nasional Bhd holds a 44.1% stake, said recently it had bagged a government supply contract worth RM1.81mil from Pharmaniaga Bhd’s logistics arm.
The contract was awarded to Duopharma’s wholly owned subsidiary, Duopharma Manufacturing (Bangi) Sdn Bhd, by Pharmaniaga Logistics.
“With this additional contract win, Duopharma’s Approved Products Purchase List (APPL) contract stood at 100 products versus 50 individual product types under the old APPL contract, with a total combined value of RM684.2mil until Dec 31, 2026,” the research house said.
This is the fourth contract Duopharma has received from Pharmaniaga to supply pharmaceutical and non-pharmaceutical products for the Health Ministry under the APPL, since April 30, 2024.
“This contract win is within our expectation as several APPL tenders are still under negotiations as the increase in Pharmaniaga’s concession agreement with the government to around 1,200 product types, from 815 previously, would cascade down to Duopharma,” it added.
TA Research maintained its “buy” recommendation for Duopharma with an unchanged target price of RM1.62 based on 16 times 2026 earnings per share.
