KUALA LUMPUR: Duopharma Biotech Bhd is looking for potential mergers and acquisitions (M&As) within the ASEAN market after two years of suspending its intention due to the pandemic.
Group managing director Leonard Ariff Abdul Shatar said the company had done a strategy a few years back, indicating that it needed to conduct M&As either domestically or regionally to remain relevant in the long term.
The company has been looking for candidates for the last three years and evaluated two local companies but did not pursue them.
"Overseas companies were complicated because we could not conduct due diligence during the Movement Control Order and were not comfortable doing it online.
"We suspended looking at international companies for two years and only focused on domestic ones.
"This year, we are looking at international companies within the ASEAN market for potential acquisitions," he said during a briefing after the company's 21st annual general meeting (AGM).
He said a few factors encourage the company to pursue M&As, namely due to the limitation on growth in the Malaysian market.
He also said the company wants a higher percentage of sales denominated outside of the Malaysian currency.
At the moment, Duopharma's export sales only account for about seven per cent of its revenue.
"We do want to increase the international component of it. We are still looking for M&A opportunities, and it will be in the healthcare space," he added.
Duopharma held its 21st AGM today, highlighting the company's path forward in strengthening its position as a leading pharmaceutical and healthcare company in Malaysia.
Duopharma ended 2021 with a revenue of RM639.18 million and a record pre-tax profit of RM82.98 million, amounting to a nine per cent increase from the previous year.
Moving forward, Leonard said Duopharma would focus more on digitalising the company.
As part of the efforts, a Digital Health Strategy has been crafted to identify opportunities that will allow the company to provide the best solutions along the healthcare value chain.
A digital task force comprising nine members from the strategy, marketing, information technology (IT), regulatory affairs, commercial, consumer healthcare, and clinical affairs departments has also been set up to oversee the implementation of the strategy.