Kuala Lumpur, February 24, 2017 – CCM Duopharma Biotech Berhad (CCMD), Malaysia’s largest pharmaceutical manufacturer registered a 16 per cent increase in revenue to RM312.94 million for the financialyear ended 31 December 2016 (FY 2016) from RM269.79 million in the previous year.

The top line growth was generated by increased contribution from its newly-acquired subsidiary companies which had been purchased from its parent company, Chemical Company of Malaysia Berhad (CCM) on 1 June 2015.

Profit before tax however, declined 34.2 per cent to RM31.48 million as compared to RM47.83 million in the corresponding period last year. The decline was due to changes in the product mix and production cost increase which was primarily driven by foreign exchange, resulting in lower gross margin.

Meanwhile, for the fourth quarter ended 31 December 2016 (Q4 2016), CCMD’s revenue dipped 7.8 per cent to RM74.03 million while the Group’s profit before tax fell 16.2 per cent to RM6.30 million as compared to third quarter ended 31 December 2016. The reduction in revenue and profit before tax was due to lower sales to private and also export markets compounded by a write off of RM1.2 million of assets no longer in use during the period due to conversion of a facility.

Highlights of the year include CCMD’s success in securing a three-year RM300 million Ministry of Health contract together with partner, Biocon Sdn Bhd (a subsidiary of Biocon Ltd), to supply Human Insulin to all government hospitals and clinics until 1 December 2019.

CCMD also recently announced the commencement of commercial registration of its Erythopoietin (EPO) biosimilar following the success of a phase III clinical trial undertaken by its subsidiary, Duopharma (M) Sdn Bhd (DMSB) with Korea’s PanGen Biotech Inc (PanGen). Commenting on the prospects for the current financial year, CCMD Chief Executive Officer, Leonard Ariff bin Abdul Shatar said demand in the pharmaceutical industry was expected to
remain stable despite facing increasing challenges from the weakening of the Ringgit which continues to impact the Group’s production and operational costs. CCMD also foresees persistent foreign exchange volatility and uncertainties in the economy, potentially putting pressure on its manufacturing margins.

“In view of the current challenging environment and barring further unforeseen development, the Group is cautiously optimistic of achieving satisfactory performance for the financial year 2017,” Leonard Ariff added.

The directors of CCMD are recommending a final tax exempt single tier dividend of 8 per cent (4sen) per share. If approved by shareholders at the forthcoming Annual General Meeting, the total dividend for the year would be 13 per cent or 6.5 sen per share.

CCMD is a subsidiary of CCM which is listed on the main market of Bursa Malaysia and is a key player in the pharmaceuticals and chemicals industries.