Duopharma To Benefit From Its Integrated Business Model, Scale And Reach - Kenanga Investment

KUALA LUMPUR, April 9 (Bernama) -- Drug maker Duopharma Biotech Bhd is favoured for its integrated business model, scale and reach, Kenanga Investment Bank Bhd said in a note today.

It said it is the top local generic drug maker in terms of sales volume and value.

“The group’s business model encompasses the entire spectrum of the pharmaceutical value chain, from product conceptualisation, research and development, to manufacturing and sales.

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It supplies its products and over-the-counter supplements to the public sector via government, direct tenders and local purchase orders, the investment bank said.

"The growth prospects of pharmaceuticals are expected to be underpinned by an aging population, rising affluence and growing chronic diseases across the globe such as cardiovascular diseases, cancer and respiratory diseases.

"Specifically, there has been a surge in demand for health supplement products as consumers take precautionary steps amid rising cases of the common flu and influenza-like illnesses," it said.

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The investment bank has an “outperform” call Duopharma as the company is expected to capitalise on rising out-of-pocket health expenditure to pharmacies.

"We value Duopharma at RM1.50 based on 15 times FY2026F earnings per share (EPS), 15 per cent to its peers’ average due to its dominant market position in the local generic drug manufacturing and bigger market capitalisation," it added.

At 11 am, Duopharma shares fell two sen to RM1.12 per share with a total of 113,200 shares changing hands.

-- BERNAMA