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Duopharma Biotech gets RM91m extension to supply insulin products to govt

TheEdge Mon, Dec 02, 2019 08:35pm - 8 months ago

KUALA LUMPUR (Dec 2): Duopharma Biotech Bhd announced today that it has obtained a one-year extension worth RM91.06 million from the Malaysian government for the supply of human insulin products.

In a bourse filing, the group said the government had written to Biocon Sdn Bhd, the maker of the products, to notify it was extending the contract by one year starting today (Dec 2), until Dec 1, 2020.

Under the original agreement, India's Biocon manufactures the product, while Duopharma Biotech's wholly-owned Duopharma Marketing Sdn Bhd (formerly known as CCM Pharmaceuticals Sdn Bhd) (DMktg), is the authorised distributor and reseller.

“The company wishes to highlight that the said amendments will be formalised through the execution of a formal supplemental agreement to the agreement between the government, Biocon and DMktg at a later date.

"The agreement and the said supplemental agreement for the supply of the Products are in the ordinary course of business of the Duopharma Biotech Group,” the group said in a filing.

The original contract that DMktg secured from the government at the beginning of 2017 was worth RM300 million, which covered the period from Dec 2, 2016, to Dec 1, 2019.

In 2012, DMktg inked a strategic partnership with India’s Biocon, which gave DMktg the exclusive license and distribution rights to market, sell and distribute a range of human insulin products in Malaysia, Singapore and Brunei.

Shares of Duopharma Biotech closed 0.72% or a sen higher at RM1.40 today, valuing the company at RM958.14 million. The counter saw 933,900 shares done. 

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