Duopharma Biotech Bhd, whose shares have fallen 22% since mid-February, said its unit has secured a RM155.28 million contract to supply insulin products to public hospitals and clinics nationwide.
In a filing on Tuesday, the pharmaceutical group said the government has accepted the tender submitted by its wholly owned subsidiary Duopharma (M) Sdn Bhd (DMSB) and issued a letter of award (LOA) for the contract.
The supply covers recombinant human insulin 100 IU/ml Penfill/Refill, including short-, intermediate- and premixed-acting formulations, as well as reusable insulin pens.
The contract runs for three years, from June 3, 2026 to June 2, 2029.
Under the terms of the award, DMSB is required to provide an irrevocable performance bond of RM2.59 million within 30 days of accepting the LOA. The company must also ensure timely delivery and compliance with government-set quality specifications, with penalties or order cancellations applicable in cases of non-compliance or delays.
The agreement also allows for termination under certain conditions, including failure to submit the performance bond, supply delays, breach of tender requirements, unauthorised equity changes, or reasons related to public interest, security, or national interest.
Duopharma noted that Malaysia has an estimated 4.75 million diabetics, with around 450,000 patients receiving recombinant human insulin treatment at government healthcare facilities.
The group said the contract is expected to contribute positively to earnings over its duration.
Duopharma, in which Permodalan Nasional Bhd holds a 44.11% stake, is a long-standing supplier of human insulin to the government and the primary distributor for Biocon Biologics, which manufactures insulin in Johor.
The group previously supplied about 80% of government insulin demand, while the remainder was supplied by Novo Nordisk, which exited the human insulin market in 2024, leaving Duopharma as the sole supplier.
Duopharma shares closed unchanged at RM1.21, giving the company a market capitalisation of RM1.16 billion.
