DUOPHARMA announced last Friday that it has secured a six-month extension to its Approved Products Purchase List (APPL) contract with the Ministry of Health.
The extension will take effect from Jan 1, 2027, to June 30, 2027, or until any later date determined by the Malaysian government.
Under the revised arrangement, Duopharma will cease supplying three products, bringing the total number of stock-keeping units (SKUs) covered by the contract down to 97 from the previous 100.
The existing APPL agreement, which remains valid until Dec 31, 2026, involves the supply of 100 pharmaceutical and non-pharmaceutical products to government healthcare facilities nationwide, with a total contract value of RM684.2 mil.
The contract extension was largely anticipated, as the company’s management had earlier indicated that a six-month continuation was more likely than the immediate award of a new three-year APPL contract.
TA Securities estimates the value of the extension at approximately RM115 mil, providing the group with earnings visibility through the first half of 2027 (1H27).
“Meanwhile, we expect the reduction of the 3 SKUs under the extended contract to have an immaterial impact, accounting for less than 1% of the group’s total revenue,” said TA.
The research house reiterates their Buy recommendation on Duopharma with an unchanged target price of RM1.69/share.—Aug 3, 2026
Main image: duopharmabiotech.com
