Duopharma Biotech bullish on performance outlook for 2020

KUALA LUMPUR: Duopharma Biotech Bhd continues to have a bullish outlook for its group performance next year, leveraging the country’s higher healthcare allocation under the 2020 Budget.

Group managing director Leonard Ariff Abdul Shatar said the increased allocation for the Ministry of Health reflected the government’s commitment to ensuring sufficient medicines supply for Malaysians.

“About 55% of our sales are from the government sector, hence, we anticipate that next year would be a better year for the group,” he told reporters at the launch of Duopharma Biotech Bhd’s rebranding exercise here on Dec 18.

Permodalan Nasional Bhd (PNB) president and chief executive Jalil Rasheed launched the company’s new corporate logo and identity, witnessed by Duopharma Biotech chairman Tan Sri Siti Sa’diah Sheikh Bakir.

Expounding Duopharma Biotech’s expansion plan, Leonard Ariff said the company’s warehouse in Klang has been completed and is waiting for the Certificate of Completion and Compliance (CCC), while its new factory, once completed, would increase its capacity by 50%.

In the last three years, he said, the group had invested over RM300 mil in capital expenditure, including the 2020 investment.

“Currently, our local consumption contributed about 92% of the group sales while the balance is from exports.

“We are reinvesting in our factories to increase the level of exports. Ideally, we expect exports to be around 20% of the revenue. Primarily, the exports would be to ASEAN countries but we are also looking at the Middle Eastern and North African (MENA) countries,” he said.

On another note, Leonard Ariff said despite being capable of self-development, the group would continue to look out for collaborations with pharmaceutical companies to accelerate the introduction of products into the local markets, and attributed partnerships to the success of its growth for the last five to six years.

He said the group has about 700 product lines and is actively promoting around 200 to 250 product lines, with the introduction and retirement of up to 12 products a year.

At the event, Duopharma Biotech also inked a memorandum of understanding with KPJ Healthcare Bhd to collaborate in exploring mutually beneficial initiatives and awareness activities relating to halal pharmaceuticals.

He said this year marks the 20th anniversary since the group received its halal certification for its over-the-counter products in 1999.

“We will continue to intensify our focus on halal pharmaceuticals as we believe the demand for such products is growing and provides the group with a differentiated offerings among generic manufacturers,” he added. – Bernama

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