- 4Q PBT leaps to RM20.47 million, a 47% increase over previous corresponding period
- EPS climbs to 8.46 sen for the year from previous corresponding year’s 8.25 sen
- The Government of Malaysia’s extension of existing Supply Agreements with government hospitals, clinics stabilises a significant portion of group revenue, placing Duopharma Biotech in a better position to mobilise resources to intensify foray into specialty and niche products
- Supply of Covid-19 vaccine also expected to contribute positively to future earnings
KUALA LUMPUR, 22 FEBRUARY 2021 – Duopharma Biotech Berhad (“Duopharma Biotech” or “the Company”) fundamentals continue to strengthen, with unaudited profit before tax for its fourth quarter leaping to RM20.47 million, a 47% increase over the RM13.94 million posted in the preceding year corresponding period.
This commendable achievement was made against unaudited quarterly revenue of RM134.09 million (2019: RM137.76 million).
After accounting for taxation, net profit for the quarter was recorded at RM16.19 million (2019: RM12.03 million), resulting in RM58.61 million net profit for financial year 2020 (2019: RM55.27million).
As a result, earnings per share increased to 8.46 sen for the year, from the 8.25 sen posted previously.
For the current financial year ended 31 December 2020, the Board of Directors has declared a second interim dividend of 6.0 sen (2019: a final dividend of 5.0 sen per share) equivalent to RM42.36 million (2019: RM 34.22 million). The Board has resolved that the Dividend Reinvestment Plan (“DRP”) approved by the shareholders would apply to this dividend. The issue price of the new ordinary shares in the Company to be issued pursuant to the DRP has been fixed at RM 3.08 per new Duopharma Biotech Berhad share. The issue price is at a discount of approximately 10% to the 5 day ex-dividend volume weighted average market price (VWAMP) of RM 3.42.
Duopharma Biotech Group Managing Director Leonard Ariff Abdul Shatar attributed the stronger performance due to the Group’s initiatives and measures in managing operational costs.
Based on Ministry of Finance’s Economic Outlook 2021, Malaysia’s GDP is expected to rebound between 6.5% and 7.5% in 2021. Within this context, the National Budget for 2021 has seen an increase of 4.2% in allocation for healthcare sector to RM31.9 billion, the highest allocation ever for the country.
Leonard Ariff also cited the following developments which would augur well for Duopharma Biotech:
- The extension of the Contract Period of the Off-Take Agreement for the Supply and Delivery of Human Insulin Products to the Government by one year effective from 2 December 2020 until 1 December 2021 with an additional contract value of RM19,625,100.
- The contract period of the Supply Agreements for the supply of pharmaceutical and/or non- pharmaceutical products to hospitals, clinics and others under the Government of Malaysia having been extended for twenty five months, commencing 1 December 2019 until 31 December 2021.
“The extensions augur well for the Duopharma Biotech Berhad 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.
In addition, Duopharma Biotech also recently entered into a Term Sheet Agreement with the Government of Malaysia (“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 (“Gamaleya”).
Furthermore, the Company has signed a Term Sheet Agreement with the Russian Direct Investment Fund (“RDIF”) to secure the 6.4 million doses of “Sputnik V”. 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 Biotech and between the Government and Duopharma Biotech, as well as the approval of the vaccine by the Drug Control Authority, Malaysia (“DCA”).
Should the definitive supply agreements be successfully executed and the vaccine approved by the DCA, the supply of vaccine is expected to contribute positively to the future earnings of Duopharma Biotech Group for the financial year ending 31 December 2021.