KUALA LUMPUR, Feb 19 — Duopharma Biotech Bhd’s shares rose during the early trading session today, after its unit received a letter of award (LOA) from the government for the supply of medical products worth RM52.54 million.
At 9.49am, the company’s shares gained seven sen to RM1.55, with a total of 1.38 million shares traded.
In a filing with Bursa Malaysia on Monday, the pharmaceutical products manufacturer said its wholly owned subsidiary, Duopharma (M) Sdn Bhd (DMSB), has accepted the letter of award (LOA) to supply insulin injections to the Ministry of Health’s (MOH) facilities, and the contract will run until February 5, 2028.
“The terms of the LOA will be formalised through the execution of a formal agreement between the government and DMSB at a later date. Until the formal agreement is executed, the LOA will continue to bind the parties,” it said.
Meanwhile, RHB Investment Bank Bhd views the LOA acceptance as a positive, adding that Duopharma Biotech’s prospects should remain supported by the MOH’s additional LOA for the supply of pharmaceutical products under the Approved Products Purchase List (APPL) contract.
“The company’s near-term profitability will likely benefit from active pharmaceutical ingredient price normalisation and a weaker US dollar.
“Therefore, we maintained ‘buy’ call with a target price of RM1.65 per share,” it said in a note today. — Bernama
