DUOPHARMA BIOTECH BERHAD · 2020. 1. 31. · Disclaimer This presentation may contain...
Transcript of DUOPHARMA BIOTECH BERHAD · 2020. 1. 31. · Disclaimer This presentation may contain...
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DUOPHARMA BIOTECH
BERHADINVESTOR RELATIONS BRIEFING
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Disclaimer
This presentation may contain forward-looking statements by Duopharma Biotech Berhad that reflect management’s current expectations, beliefs,intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on variousassumptions and made subject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materiallyand significantly from those discussed in the forward-looking statements. Such statements are not and should not be construed as a representation,warranty or undertaking as to the future performance or achievements of Duopharma Biotech Berhad and Duopharma Biotech Berhad assumes noobligation or responsibility to update any such statements.
No representation or warranty (either express or implied) is given by or on behalf of Duopharma Biotech Berhad or its related corporations (includingwithout limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") asto the quality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonablecare has been taken in compiling or preparing the Information.
None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinionwhich may have been expressed in the Information.
The Information is and shall remain the exclusive property of Duopharma Biotech Berhad and nothing herein shall give, or shall be construed as giving, toany recipient(s) or party any right, title, ownership, interest, licence or any other right whatsoever in or to the Information herein. The recipient(s)acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s).
No part of this presentation is intended to or construed as an offer, recommendation or invitation to subscribe for or purchase any securities inDuopharma Biotech Berhad.
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In 2005, Chemical
Company of Malaysia Berhad
(“CCMB”) acquired
Duopharma , a pharmaceutical company that
was established since 1979.
In 2006, Duopharma
was rebranded to CCM
DuopharmaBiotech
(“CCMD”).
In 2007, CCMD acquired the assets and brands of Malayan Pharma.
In 2015, CCMB underwent a
corporate restructuring.
All of its pharmaceutical
subsidiaries were placed under CCMD.
On 28 December 2017, CCM
Duopharmade-merged
from CCMB.
Therefore, CCMD became
an independent public listed
company.
On 25 February
2019, CCMD has changed its name to Duopharma
Biotech Berhad
(“DuopharmaBiotech”).
Journey of Duopharma Biotech Berhad
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Implications of the De-merger
We are UNABLE to carry CCM brand / name
We are REQUIRED to change the company name and its subsidiaries
We are REQUIRED to have our own corporate identity
We are REQUIRED to establish our own vision and mission
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Logo Description
Shape▪ Modern▪ Symbolises innovation across every aspect of the business▪ Six sides represent the company’s six core values
Letter ‘D’ and ‘B’ inside the hexagon ▪ D and B stand for ‘Duopharma’ and ‘Biotech’
Colour of the logo▪ Logo is rendered in bold red, the colour of passion
Name of Duopharma at the bottom ▪ Expressed in a font that perfectly balances rounded shapes▪ “Duo” represents the company’s two main businesses – prescribed medicine and consumer
healthcare product
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New Vision, Mission and Tagline
Providing smarter solutions for a healthier life
A leading Healthcare Group providing quality and innovative solutions
New VISION
New MISSION
New TAGLINE
Smarter Solutions. Healthier Life.
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Change of Name of Company
Old Company Name New Company Name Status
CCM Pharmaceuticals
Sdn. Bhd.
Duopharma Marketing
Sdn. Bhd.
Effective from 26 December
2018
Upha Pharmaceutical
Manufacturing (M)
Sdn. Bhd.
Duopharma Manufacturing
(Bangi) Sdn. Bhd.
Effective from 26 December
2018
Innovax Sdn. Bhd.
Duopharma Innovation
Sdn. Bhd.
Effective from 26 December
2018
CCM Biopharma Sdn. Bhd.Duopharma HAPI Sdn. Bhd. Effective from 26 December
2018
CCM Pharma Sdn. Bhd.
Duopharma
Manufacturing
(Glenmarie) Sdn. Bhd.
Effective from 26 December
2018
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Old Company Name New Company Name Status
Duopharma (M) Sendirian
Berhad
Duopharma (M) Sendirian
Berhad
No change to company
name
Sentosa Pharmacy Sdn.
Bhd.
Sentosa Pharmacy Sdn.
Bhd.
No change to company
name
Unique Pharmacy (Penang)
Sdn. Bhd.
Unique Pharmacy
(Penang)
Sdn. Bhd.
No change to company
name
Negeri Pharmacy Sdn. Bhd. Negeri Pharmacy Sdn.
Bhd.
No change to company
name
Unique Pharmacy (Ipoh)
Sdn. Bhd.
Unique Pharmacy (Ipoh)
Sdn. Bhd.
No change to company
name
Change of Name of Company
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Old Company Name New Company Name Status
CCM Pharmaceuticals (S)
Pte. Ltd.
Duopharma (Singapore)
Pte. Ltd.
Effective from 4 January
2019
CCM International
(Philippines), Inc.
DB (Philippines), Inc. Effective from 15 February
2019
CCM Duopharma Biotech
Berhad
Duopharma Biotech
Berhad
Effective from 25 February
2019
Change of Name of Company
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Corporate Structure
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Shareholding Structure
PNB, 46.7%
Amanahraya Trustees
Berhad,ASB,
4.2%EPF, 7.8%
Others, 41.3%
Note: Shareholding as at 31 January 2019
DPHARMA (Stock Code – 7148)
Market capitalization on 30.04.2019 = RM 933 milShare price = RM 1.41
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Board of Directors
Non-Independent & Non-Executive Chairman
Tan Sri Datin Paduka Siti Sa'diah Binti Sh Bakir
Independent Non-Executive Director
Encik Razalee bin Amin
Independent and Non-Executive Director
Dato' Eisah Binti A. Rahman
Executive Director
Group Managing Director
Encik Leonard Ariff bin Abdul Shatar
Independent Non-Executive Director
Datuk Seri Rohani Parkash binti Abdullah
Independent Non-Executive Director
Datuk Nik Moustpha bin Hj Nik Hassan
Senior Independent Non-Executive Director
Dato' Mohamad Kamarudin bin Hassan
Independent Non-Executive Director
Puan Zaiton bintiJamaluddin
Non-Independent and Non-Executive
Datuk Mohd Radzif Bin Mohd Yunus
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Board of Directors
STRUCTURE Board of Directors
Nomination and Remuneration
Committee
Chairman: Dato’ Mohamad Kamarudin bin
Hassan
Audit and Integrity Committee
Chairman: Encik Razaleebin Amin
Risk Management and Sustainability
Committee
Chairman: Datuk MohdRadzif bin Mohd Yunus
Halal Committee
Chairman: Datuk Nik Moustpha bin Hj Nik
Hassan
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Group Management Committee
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Financial Highlights
(in RM'million) 2016 2017 2018
Non-current assets
295.3 348.6 469.0
Current assets 366.2 356.6 367.3
Equities 454.5 479.9 481.0
Liabilities 206.9 225.4 355.3
Gearing 0.25x 0.27x 0.51x
Return on Equity 5.9% 8.8% 9.9%
Internal Restructuring completed on 24 May 2018 enables the Group to be more nimble in securing potential business opportunities and more tax efficient.
2016 2017 2018
PBT 31.5 51.8 59.7
PAT 26.8 42.5 47.6
Revenue 312.9 468.0 498.7
0
100
200
300
400
500
600
0
10
20
30
40
50
60
70 RM’millionRM’ million
PBT PAT Revenue
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FY 2016 Revenue : RM 312.94 mil
Export 12%
Export 8%
Local (Private) 54%
Note:
Duopharma Biotech’s top export markets in FY2018 (% based on export revenue):
1.Singapore – 22.6% (RM9.3mil)
2.Philippines – 21.1% (RM8.7mil)
3.Middle East – 18.4% (RM7.6mil)
Local (Government)
34%
Local (Government)49%
43%
Local
(Private) 54% 39%
Financial Highlights – Segmental Sales
Export 8%
Local (Private)42%
Local (Government)50%
FY 2017 Revenue : RM 467.99 mil
FY 2018 Revenue : RM 498.72 mil
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Key Highlights
KEY HIGHLIGHTS
No. 1 local pharma company in terms of volume and No.2 in terms of sales and market share (Source: IQVIA Report,December 2018).
Continuous collaboration and partnering with key pharma players i.e. Biocon, PanGen Biotech, Natco & Becton Dickinson.
Successfully launched a pre-filled format for an insulin glargine, Basalog One.
Expanded our Hepatitis C portfolio with products from Natco.
Flavettes regained its leadership as the No.1 supplement in the Adults Vitamin C market in Malaysia with the Effervescentrange overtaking all other brands in terms of market share.
Penetrated four new international markets and achieve all-time high sales.
Completed and commissioned Malaysia’s first Highly Potent Active Pharmaceutical Ingredients (HPAPI) manufacturing facility.
Completed EPO Phase III clinical trials in April 2017. Completed Malaysia’s first biological pre-filled syringe line tomanufacture the biosimilar. Obtained Registration approval for the product called Erysaa from the National PharmacyRegulatory Agency (NPRA) on 31 January 2019.
Won a contract from the government to supply Daclatasvir.
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Completed Corporate ExercisesInternal Restructuring was completed on
24 May 2018
(i) the acquisition by Duopharma Biotech of the entire equity interest in Duopharma HAPI Sdn Bhd (formerly known as CCM Biopharma
Sdn Bhd) and Negeri Pharmacy Sdn Bhd for RM 2.5 million and RM 1 respectively from Duopharma Marketing Sdn Bhd (formerly known
as CCM Pharmaceuticals Sdn Bhd)
(ii) the acquisition by Duopharma Biotech of the entire equity interest in Duopharma Manufacuturing (Bangi) Sdn Bhd (formerly
known as Upha Pharmaceuticals Manufacturing (M) Sdn Bhd) for RM 78.37 million from Duopharma (M) Sdn Bhd.
(iii) the increase of the paid up share capital of DuopharmaManufacuturing (Bangi) Sdn Bhd (formerly known as Upha
Pharmaceuticals Manufacturing (M) Sdn Bhd) by way of conversion of a portion of inter-company loan owing by Duopharma
Manufacuturing (Bangi) Sdn Bhd to Duopharma Biotech amounting to RM 90mil.
Purchase of Trade Marks from CCMB was completed on 24 May 2018
Establishment of first Dividend Reinvestment Plan was approved by shareholders during
Extraordinary General Meeting on 31 May 2018
Bonus Issues of 4 Bonus Shares for Every 3 Existing Shares was completed on 20 June 2018
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Acquisition of 806,450 share representing approximately 8.39% stake in PanGen from Chemical Company of
Malaysia Berhad for RM 59.16 million ( KRW 16.35 billion ) was completed on 29 June 2018
Acquisition of 164,016 common shares and 109,344 redeemable convertible preference shares representing approximately 5.8% stake in SCM Lifescience, a Korean
stem cell firm for RM 20.24 million (KRW 5.5 billion) on 23 November 2018.
Completed Corporate Exercises
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Investments in Korea
Acquisition of 8.39% stake in PanGen Bioetch Inc, a Korean Biopharmaceutical company, from Chemical Company of
Malaysia Berhad for RM 59.16 million ( KRW 16.35 billion )
on 29 June 2018.
Acquisition of 5.8% stake in SCM Lifescience, a Korean
stem cell firm for RM 20.24 million (KRW 5.5 billion) on
23 November 2018.
WHY Korea?
• In line with our strategy to diversify into biotherapeutics and high-value niche products.
• Their technology is applicable in Malaysia.• Opportunity to have an early stage entry, before it becomes costly
later on.• Regulation on stem cell in Malaysia to start in 2021; timely to acquire
SCM. • As Korea recognises biotech technologies, Duopharma Biotech may
be able to monetise the technologies.• Investee company has proof of concept product.
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Bangi Plant EstablishedWorkforceTypes of Products
• 1976• 769 people (including Sales & Marketing team)• Ethical and CHC Products – mainly in oral solid dosages, soft gels, liquids
and cream forms
Klang Plant EstablishedWorkforceTypes of Products
• 1979• 484 people• Oral solids dosages, Haemodialysis & SVI Products, LVI – Irrigation solution
products, dental cartridge and sterile cephalosporin
Glenmarie Plant EstablishedWorkforceTypes of Products
• 2008• 55 people• HAPI plant for Oncology• Duopharma Innovation Sdn Bhd, the division’s R&D centre is located in this
plant
Kenanga Office (HQ) EstablishedWorkforce
• 2018• 26 people
Facilities Snapshot
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Research & Development (R&D)
Duopharma Innovation Sdn Bhd (“DISB”) is the Division’s dedicated in-house
pharmaceutical R&D facility, centred independently at Glenmarie, Selangor.
DISB is a state-of-the-art R&D centre accredited with the MS ISO/IEC 17025
standard.
The centre also houses lab scale equipment for formulation trials, designed
towards GMP requirements.
DISB provides scientific and technical knowledge and skill in the development of
high quality, safe and efficacious pharmaceutical products.
Duopharma Innovation Sdn Bhd
Formulation Analytical Regulatory Affairs Outsource
Services
DISB has a pilot batch facility, which is essential during a product’s development
and optimisation phase.
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Market Presence
Duopharma Biotech is ranked 2nd in terms of
market share
Duopharma Biotech is the No. 1 company by Sales
volume
Duopharma Biotech is ranked 2nd in terms of
sales value and has the fastest growth trend
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Market Presence (International)
Year / RM’mil
ASEAN Asia Pacific
Rest of World
FY 2016 27.0 3.0 6.1
FY 2017 26.6 4.4 6.4
FY 2018 26.1 4.5 7.9
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Four-Pronged Strategy
Diversify onto high-value
biologicals and niche products
Expand our range of Ethical and Consumer
Healthcare (CHC) product
portfolios
Enhance our presence in the ASEAN region
Upgrade of manufacturing facilities into world-class
assets
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Challenges and Opportunities
• Commercialization of high value product in niche therapeutic areas such as oncology and bio-therapeutics- Registration of Erysaa, an erythropoietin (EPO) biosimilar, has been approved by National Pharmacy
Regulatory Agency (NPRA) on 31 January 2019. Able to bid for government tender worth RM 10 – 15 million
- Registration of Trastuzumab, an oncology product has been approved• Oncology facility to commence in Q3 2019• Implementation of National B40 Protection Scheme • Growing International Business segment
OPPORTUNITIES
• Insulin tender ( 3 + 2 ) ending in 2019. Engage with Ministry of Health to opt for 2 years extension• APPL expiring by 31 December 2019• Reduction in consumption• Increasing cGMP requirements• Short term revolving credit from OCBC• Differences in regional regulations impacting growth of international businesses• Expanding product portfolios (prohibitive BE and clinical costs)• Strengthening USD resulting in higher cost of imported raw materials
CHALLENGES
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New Products Pipeline
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Oncology Franchise
Letrozole
CHC New Products
Champs Effervescent
CHC New Products
Flavettes Effervescent
Renal Franchise
Insulin Injection
Renal Franchise
Erythropoietin (EPO)
Renal Franchise
Heparin
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Project Updates – HAPI Plant
Pilot batch for Letrozole 2.5mg tab (1st product)• Successfully conducted Comparative Dissolution Profile “CDP” (against
Natco’s batch) with good result.• Passed all acceptance criteria for 1st month stability study.• Target to conduct Process Validation (PV) batches in Q2 2019.
Other progress• NPRA inspection target by end April 2019.• Collaboration with UTM in waste water deactivation management.
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API dispensing Compression process
Project Updates – HAPI Plant
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Project Updates – HAPI Plant
Granulation process Testing done in containment
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Project Updates – K6
• 94.5% completed.
• Remaining works :➢ Main bridge construction ➢ Road widening works
• CCC application in Q2 2019.
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Project Updates – K6
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Project Updates – K6
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Project Updates – K6
Pick and Pack Area with Safety Barriers Installed
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Project Updates – K3 & K5 Substructure Works
K3• Piling works completed.• Basement level pile cap works will start once
cofferdam installed.• Cofferdam sheet piles currently being installed.• Project timeline to be extended until June 2019.
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Project Updates – K3 & K5 Substructure Works
Ongoing Pile Cap Construction – Concreting work
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Project Updates – K3 & K5 Substructure Works
Anti-Termite work on Pile Cap Backfilling work
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Project Updates – 33kV SSU Update
33KV SSU• 33 KV SSU 90% completed.• Transformers and Switch Gears installed.• TNB owned rooms to be handed over after
inspection.• K4 Guardhouse construction next.
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Project Updates – 33kV SSU Update
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Project Updates – 33kV SSU Update
33kV and 11kV Switchgears delivered
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Awards and Recognitions 2018
The recipient of the 2018 Frost & Sullivan award for the Malaysian “Pharmaceutical Company of the Year” and “Halal Pharmaceutical Company of the Year”.
The recipient of the 2018 HR Asian Award for “Best Companies To Work For” in 2018, 3rd consecutive year.
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Watsons Health, Wellness and Beauty Awards 2018
1)CHAMPS – Best Exclusive Campaigni) Extensiveness of the overall campaign – 360 on ground activation, e-commerce, social media, etc. ii) Active participations in Watsons initiated campaign
2)NATURALLE – Most Wanted Garlic Supplementi) Highest sell-out for the particular sub-segment from April 2017 to March 2018
Awards and Recognitions 2018
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Accreditations & Past Awards
GMP clearance by TGA (Australia)
Certificate of GMP by Kingdom of Saudi Arabia FDA
GMP – Manufacturing license by the National Pharmaceuticals Control Bureau (NPCB) Malaysia
Indonesian HALAL certification from Majelis Ulama Indonesia
Malaysian HALAL certification from JAKIM based on the world’s first Halal Pharmaceutical Standards (MS2424:2012)
MSWG ASEAN Corporate Governance Recognition 2017 - Excellence Award for Overall CG & Performance 2017 (Market Cap between RM300 Million to RM1 Billion)
HR Asia Awards 2016 & 2017 – Best Companies to Work for in Asia
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