PETALING JAYA: Duopharma Biotech Bhd’s net profit rose 34.6% to RM16.2 million in the fourth quarter ended Dec 31, 2020 against RM12.03 million reported in the same quarter of the previous year due to the group’s initiatives and measures in managing operational costs.
Revenue for the quarter dipped 2.7% to RM134.09 million from RM137.76 million reported previously.
For the full financial year, the group’s net profit went up 6% to RM58.61 million against RM55.27 million registered in the previous year.
Revenue for the period dipped 1.1% to RM569.9 million from RM576.46 million reported previously.
With that, it has declared a second interim dividend of 6 sen per share, which translates to a total payment of RM42.36 million.
Looking ahead, its group managing director Leonard Ariff Abdul Shatar said Duopharma’s one-year extension for the supply and delivery of human insulin products to the government with an additional value of RM19.63 million to augur well for the group.
Aside from that, it has also received a 25-month extension for the supply of pharmaceutical and/or non-pharmaceutical product to hospitals, clinics and others under the Malaysian government.
“The extensions augur well for the Duopharma Biotech Bhd Group 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,” said Leonard Ariff.
Duopharma Biotech also 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.
Furthermore, the company has signed a term sheet agreement with the Russian Direct Investment Fund to secure the 6.4 million doses of Sputnik V. Should the definitive supply agreements be successfully executed and the vaccine approved by the Drug Control Authority, the supply of vaccine is expected to contribute positively to the future earnings of the group for the financial year ending Dec 31, 2021.