Duopharma Biotech bags RM375.17mil contract to supply insulin to govt hospitals

KUALA LUMPUR: Duopharma Biotech Bhd's unit, Duopharma Marketing Sdn Bhd, has bagged a RM375.17 million contract from the Health Ministry (MoH) to supply human insulin formulation to all hospitals, district health offices and health clinics.

In an exchange filing today, the company said the government had accepted the tender offer from Duopharma Marketing to supply the products under the MoH's procurement by way of direct negotiation upon the terms and conditions set out in the letter of award (LoA).

The LoA shall be for three years commencing on December 17, 2021, until December 16, 2024.

Duopharma Biotech said the terms of the LoA would be formalised through the execution of a formal agreement between the government and Duopharma Marketing at a later date.

Duopharma Marketing is required to deliver an irrevocable performance bond to the government for the sum of RM6.25 million within 30 days from the date of acknowledgement of receipt of the LoA.

Upon an order being issued by the government, Duopharma Marketing must supply the products within the prescribed time, and the quality of supply must satisfy the government's requirements.

With an estimated 3.9 million diabetics in Malaysia, about 420,000 patients are treated using human insulin in government hospitals and clinics.

Duopharma Marketing hopes to improve diabetes management in the country by providing high quality and cost-effective biosimilar insulins.

Duopharma Biotech group is primarily involved in carrying on business as a manufacturer, distributor, importer and exporter of pharmaceutical products and medicines.

"Barring any unforeseen circumstances, the LoA is expected to contribute positively to the future earnings and earnings per share of the Duopharma Biotech group for the current financial year, 2022, 2023 and 2024."

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