November 29, 2018
• CCM Duopharma’s Revenue was up 7.69 per cent for the current year to date (YTD) ended September 30, 2018 to RM383.09 million from RM355.73 million in the corresponding period last year
• Profit before Tax (PBT) rose 7.80 per cent during the same period to RM42.01 million from RM38.97 million in the corresponding period in 2017
• The Company’s Revenue and PBT for the third quarter ended September 30, 2018 increased 1.49 percent and 22.63 per cent respectively, compared to the precedingquarter ended June 30, 2018.
• CCM Duopharma will continue its foray into specialty products as one of its strategies moving forward to create a pool of niche pharmaceutical products.
• CCM Duopharma expects to achieve satisfactory results for FY 2018.
PERFORMANCE FOR YTD PERIOD ENDED SEPTEMBER 30, 2018
Kuala Lumpur – CCM Duopharma Biotech Berhad (CCM Duopharma) grew its Revenue by 7.69 per cent to RM383.09 million from RM355.73 million for the first nine months of its financial year ended September 30, 2018. The Company’s Profit Before Tax (PBT) for the period under review rose 7.80 per cent to RM42.01 million from RM38.97 million.
CCM Duopharma’s Group Managing Director, Leonard Ariff Abdul Shatar said that “The Company’s revenue and profits improved compared to the corresponding period last year mainly due to the higher domestic demand from both the private and public health sectors.” CCM Duopharma expects to see continued positive demand from all business segments in tandem with Malaysia’s GDP which is expected to grow by about five per cent this year and in particular the recent Government’s 2019 National Budget announcement of increased allocation for health services to RM29 billion, of which RM10.8 billion is for restoration of clinics and hospitals, as well as purchases of medical equipment and medicines.
“We are buoyant on the positive outlook for the pharmaceutical industry for the rest of 2018 and CCM Duopharma will tap into these opportunities by enhancing our participation in both the local private and public sectors,” he added.
COMPARISON WITH PRECEDING QUARTER’S PERFORMANCE
The Company’s third quarter Revenue and PBT for the period ended September 30, 2018,
increased 1.49 per cent and 22.63 per cent to RM125.84 million and RM15.84 million
respectively on increased demand and improved efficiency levels.
“CCM Duopharma is positively moving forward and optimistic of the prospects of its specialty
business which is set to launch more new and innovative products in the near future,” said
On October 25, the Company concluded a Share Subscription Agreement (SSA) with SCM Lifescience Co Ltd (SCM Lifescience), Sun U. Song and Byung Geon Rhee for the subscription of 164,016 common shares and 109,344 redeemable convertible preference shares representing approximately 5.8% equity stake in SCM Lifescience for a total
purchase consideration of approximately KRW5.5 billion (RM20.24 million).
On the same date, and in conjunction with the SSA, the Company also entered into an Exclusive Marketing and Commercialization Agreement (EMCA), whereby SCM Lifescience granted the Company subject to the terms and conditions of the EMCA rights to market and commercialise stem cell therapy products developed by SCM Lifescience in selected territories in ASEAN as well as technology transfer to the Company for any new future new stem cell therapy business undertaken by the Company to the extent it is necessary for SCM Lifescience to fulfill the obligations under the EMCA. Earlier on 13 April 2018, the Company had also concluded a conditional share sale agreement with Chemical Company of Malaysia Berhad to acquire 806,450 PanGen shares, representing approximately 8.38 per cent equity interest in PanGen for a total purchase consideration of RM59.16 million (KRW16.35 billion). The acquisition was completed on June 28, 2018.
With these recent investments in SCM Lifescience and PanGen, CCM Duopharma is on track to become one of the leading generic pharmaceutical companies in ASEAN, as it gives the Company new opportunities to market biosimilar and specialty products in the ASEAN region.
On December 28, 2017, CCM Duopharma became an independent public listed company upon completion of a demerger exercise from Chemical Company of Malaysia Berhad (CCMB).
CCM Duopharma concluded in June 2018 a bonus issue of up to 371,945,333 new ordinary shares in the Company on the basis of four (4) bonus shares for every three (3) existing shares held by shareholders of the Company, reflecting the Company’s stronger fundamentals after the demerger exercise was completed.
During the current period ended September 30, 2018, the Company paid out a final dividend of 6 sen per share equivalent to RM16.74 million in respect financial year ended December 31, 2017.