“Although 2020 is proving to be more challenging than previous years, we continue to remain cautiously optimistic on our financial year 2020 performance, ” group managing director Leonard Ariff Abdul Shatar (pic) said
PETALING JAYA: 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 announced a net profit of RM14.7mil in the three months ended June 30, compared with a net profit of RM13.9mil achieved 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 on our financial year 2020 performance, ” group managing director Leonard Ariff Abdul Shatar said in a statement.
He confirmed that Duopharma Biotech had been informed that its contract for the supply of pharmaceutical and/or non-pharmaceutical products to hospitals, clinics and others under the government have been extended for 25 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 its resources to intensify its foray into specialty products as one of its strategies moving forward to create a pool of niche products, ” he added.