Pharmaceutical company Duopharma Biotech Bhd has announced that the Putrajaya has extended the contract for the supply and distribution of human insulin products by one year, from December 2, 2020 to December 1 next year.
The extension comes with an additional contract value of RM19,625 million. Following this second additional contract value, the total contract value has been increased to RM410.725 million from RM300.04 million under the original agreement.
Duopharma Biotech claimed that the agreement was between the government, Biocon Sdn Bhd as the manufacturer, and Duopharma Marketing Sdn Bhd (DMktg), a wholly-owned subsidiary of Duopharma Biotech, as the authorised distributor/reseller of Biocon.
Notably, the value of the goods is yet to be negotiated by the Government pursuant to the Agreement (including this second additional contract value) is approximately RM69.08 million, as at December 2.
As quoted in the filing with Bursa Malaysia, “In the event the products are drawn down by the government, such supply to the government would contribute positively to Duopharma’s revenue and earnings in the financial year 2021.
The company wishes to highlight that the said amendments will be formalised through the execution of a formal supplemental agreement to the agreement between the government, Biocon and DMktg at a later date.”