KUALA LUMPUR (Jan 25): CCM Duopharma Biotech Bhd announced that its wholly-owned subsidiary, CCM Pharmaceuticals Sdn Bhd, has been awarded a RM300.04 million contract by the Health Ministry to supply human insulin to all government hospitals and clinics in Malaysia.
In a filing with Bursa Malaysia this afternoon, CCM Duopharma said the contract is valid for three years, which had commenced from Dec 2, 2016, and will last until Dec 1, 2019.
CCM Pharmaceutical is the reseller of the human insulin, which is manufactured by Biocon Sdn Bhd in Nusajaya, Johor.
Human insulin is the name describing synthetic insulin, which is laboratory-grown to mimic the insulin in humans.
“The company wishes to highlight that the terms of the letter of award will be formalized through the execution of a formal agreement between CCM Pharmaceutical, Biocon and MOH at a later date,” it said in a statement, adding that “nevertheless, the supply of the products to the Ministry of Health has already commenced.”
It is estimated that there are 3.5 million diabetics in Malaysia, of which 350,000 patients are treated by using human insulin in government hospitals and clinics.
“CCM Pharmaceutical and Biocon hope to improve diabetes management in the country by providing high quality and cost effective bio-similar insulin,” the company added.
CCM Duopharma is controlled by Chemical Company of Malaysia Bhd, with a 73.37% stake. It sells pharmaceutical products — via CCM Pharmaceuticals — which are in the form of tablets, syrups, capsules and creams.
Besides Malaysia as its principal market, CCM Duopharma also sells its products in Singapore, Vietnam, Indonesia, Mauritius, Maldives and Philippines.
Meanwhile, Biocon is part of Biocon Ltd, the largest pharmaceutical company in India. The company entered Malaysia in 2010, investing some US$250 million to build an integrated insulin manufacturing facility.
At noon break today, shares in Main Market-listed CCM Duopharma closed unchanged at RM1.92, giving it a market capitalisation of RM535.6 million.