KLANG: Duopharma Biotech Bhd is eyeing Indonesia as a near-term growth market for its halal-certified products as the country prepares to enforce mandatory halal certification for over-the-counter (OTC) medicines by next year.
Managing director Leonard Ariff Abdul Shatar said the regulation, originally scheduled to take effect in 2022 or 2023, had been postponed but is now expected to be implemented in 2026 or 2027.
““Indonesia is moving in that direction. In fact, they had a law slated to take effect in 2022 or 2023, requiring all over-the-counter products to be 100% halal. However, the implementation of that legislation has been delayed—possibly until 2026 or 2027. I see this as a viable opening for Duopharma’s products. Personally, I believe we’ll see more traction coming from Indonesia in the near term compared to the Middle East,” he said at a press conference after its AGM today.
As at end-2024, he said the Malaysian government contracts accounted for 50% of Duopharma’s revenue, the private sector 42%, and exports 8%. So there’s still a fair amount of headroom (in the export segment).
“Regionally, we are seeing positive growth in the sales of consumer healthcare products, as well as generics and biosimilars, and medical devices,” he added.
Leonard Ariff said the company does not want to have too much concentration in a single sector.
“So, as a result, we de-risk through access to the private sector, and we also de-risk through the export market,” he said.
Furthermore, in terms of halal, he said that Duopharma Biotech has already begun supplying Timor-Leste through a direct tender.
However, Qatar and other Middle Eastern markets remain challenging due to regulatory differences.
“On the one hand, you have countries that are very keen to take advantage of our halal certification process in terms of products. But you can’t forget the fact that the product still remains a pharmaceutical, which means it needs to go through a registration process first before moving on to the halal certification process.”
While these countries are interested in halal-certified products, he said they do not automatically accept Malaysia’s Jakim halal certification.
“They actually want to conduct an audit – reviewing the dossier and related documentation – so it will take some time before we see any real traction in the Middle East,” he said.
In February, Duopharma Biotech became the first Malaysian pharmaceutical company to obtain halal certification from Jakim for its erythropoiesis-stimulating agent product to treat anaemia, adding to the previous milestone of obtaining the first halal certification from Jakim for a cancer drug. Meanwhile, the company also introduced five new generics for breast cancer, heart and kidney patients in FY24.
To enable more patients in overseas markets to access medicines produced by Duopharma Biotech, the company continued to pursue more international certifications for its manufacturing facilities. Following an audit by the Health Products Regulatory Authority, Ireland, Duopharma Biotech’s Highly Potent Active Pharmaceutical Ingredients manufacturing plant in Glenmarie, Shah Alam was certified as meeting European Union Good Manufacturing Practice standards.
