KUALA LUMPUR (Dec 22): CCM Duopharma Biotech Bhd has bagged a contract worth RM156 million to supply pharmaceutical and/or non-pharmaceutical products to hospitals, clinics and others under the Malaysian Government from Pharmaniaga Logistics Sdn Bhd.

In a filing to Bursa Malaysia today, CCM Duopharma said its wholly-owned subsidiary Duopharma (M) Sdn Bhd has received and accepted a letter of offer (LoA) from Pharmaniaga Logistics to supply the products, as listed in the LoA.

The supply period for the products is effective from Dec 1, 2017 until Nov 30, 2019 or at such other date as directed by the government.

"The prices of the products shall remain the same and unchanged throughout the tenure of the contract and shall be solely determined by the government," said CCM Duopharma.

The contract is expected to contribute positively to the earnings of the company for the financial year ending Dec 31, 2017 onwards until the expiry of the contract.

Pharmaniaga Logistics is a wholly-owned subsidiary of Pharmaniaga Bhd.

On March 16, 2011, Pharmaniaga Logistics entered into a concession agreement, which will expire on Nov 30, 2019, with the Malaysian Government, represented by the Ministry of Health (MoH), for the right and authority to buy, store, supply and distribute drugs and non-drugs approved by MoH to public sector customers such as government hospitals, health offices, health clinics and dental clinics operated and controlled by MoH.

CCM Duopharma shares closed unchanged at RM2.41 today, and for a market capitalisation of RM672.29 million.