Sputnik V to contribute to Duopharma’s earnings

by ASILA JALIL / graphic by MZUKRI MOHAMAD

DUOPHARMA Biotech Bhd is well-positioned to gain positive earnings contribution from the supply of Sputnik V vaccine for its financial year ending Dec 31, 2021 (FY21).

The company had signed a term sheet agreement with the Russian Direct Investment Fund (RDIF) to secure 6.4 million doses.

In a Bursa filing, the company noted the RDIF is the appointed marketing agent for Gamaleya for all international markets.

“The supply is subject to the execution of the definitive supply agreements between RDIF and Duopharma, and between the Ministry of Health (MoH) and Duopharma, as well as the approval of vaccine by the Drug Control Authority Malaysia (DCA).

“All efforts have been put in place in order to expedite execution of these agreements. Pending the execution and signing of definitive supply agreements and conditional registration approval by DCA, the management of vaccine supply is expected to contribute positively to the future earnings of Duopharma for FY21,” it said.

Duopharma’s net profit for its first quarter ended March 31, 2021 (1Q21), came in 29.9% higher year-on-year (YoY) at RM17.61 million compared to RM13.56 million it made in the same period last year.

It clocked in a revenue of RM166.45 million, up 4.9% YoY from RM158.71 million in the same period last year due to higher sales from the consumer healthcare sector during the period.

The group added that it had recently been notified of the extension of the contract period on the agreement for the supply and delivery of human insulin products under the government.

It had been extended for a year effective Dec 2, 2020, until Dec 1, 2021, with an additional contract value of RM19.63 million.

Another development that has taken place is the extension of the contract of the supply agreements for the supply of pharmaceutical and/or non-pharmaceutical products to hospitals, clinics and others under the government which have been extended for 25 months, effective Dec 1, 2019 until Dec 31, 2021.

“The extensions augur well for the group as it stabilises a significant portion of the group’s revenue for the said period and enables the group to mobilise our resources to intensify its foray into the specialty products as one of its strategies moving forward to create a pool of niche products.

“Barring any unforeseen circumstances, Duopharma is expected to achieve satisfactory results in FY21,” it added.

Duopharma’s share price rose eight sen or 2.81% to RM2.93 at closing bell yesterday, valuing the company at RM2.07 billion.