KUALA LUMPUR (Aug 13): Duopharma Biotech Bhd remains cautiously optimistic of its performance for the current year after reporting slightly higher second quarter earnings.

The group said its net profit rose 5.8% to RM14.73 million for the quarter ended June 30, 2020 (2QFY20) from RM13.92 million in the previous year’s corresponding quarter.

Quarterly revenue fell 1.5% to RM143.33 million from RM145.47 million previously, the group said in a filing today.

Duopharama declared an interim dividend of 0.5 sen per share.

For the first half of the year, the group saw its net profit fall marginally to RM28.29 million from RM28.38 million in the previous year, while revenue rose 2.1% to RM302.04 million from RM295.85 million.

The group attributed the improvement in revenue for the period to higher demand from the consumer healthcare sector.

“Despite the huge international and domestic uncertainties arising from the Covid-19 pandemic, the solid financial results demonstrate the sustained demand for Duopharma Biotech’s pharmaceutical products from both the private and public health sectors.

“Although 2020 is proving to be more challenging than previous years, we continue to remain cautiously optimistic of our FY20 performance,” said Duopharma group managing director Leonard Ariff Abdul Shatar in a statement.

He also said the group’s new highly potent active pharmaceutical ingredients plant is fully operational with the manufacture and supply of its first product, Letrozole, to both the private market and for government tender.

Duopharma Biotech is currently preparing for the technology transfer of a second product this month, he said.

Meanwhile, the contract period of the offtake agreement programme for the supply of human insulin formulations has been extended for one year until Dec 1, 2020.

“These extensions will help to stabilise a significant portion of the group’s revenue for the said period. This will also enable the group to mobilise our resources to intensify our foray into specialty products as one of our strategies moving forward to create a pool of niche products,” he said. 

"Additional allocations have also been made to the Ministry of Health as a part of its national Covid-19 countermeasures, which further fuels an optimistic outlook since approximately 50% of our sales are to the public sector,” he added. 

Duopharma Biotech’s share price fell 14 sen or 4.26% to close at RM3.15, giving a market capitalisation of RM2.22 billion.