Pharma supply holds firm despite global tensions

THE domestic supply of medicines within the nation remains stable and unaffected by global conflicts, including tensions involving the United States and Iran, according to a recent corporate research note by CIMB Securities.

Duopharma Biotech Bhd (DBB) has confirmed that it has experienced no disruptions within its supply chain, underscoring the resilience of local pharmaceutical operations in the face of external uncertainties.

CIMB Securities analyst Chun Sung Oong noted that the company currently holds sufficient raw material inventory to sustain operations for at least six months.

"This inventory level is broadly in line with earlier guidance from the Ministry of Health Malaysia, which recommended a stock buffer of up to five months to mitigate the risk of raw material shortages," said Sung Oong.

While supply continuity remains intact, the company is facing mounting pressure from higher logistics and input costs, driven by ongoing geopolitical tensions.

In response, Duopharma is preparing to implement mitigation measures, including potential price adjustments within the private healthcare sector.

"The company will implement price adjustments in the private sector, if feasible, to alleviate any cost impact," according to the CIMB Securities report.

In contrast, medicine prices within the public healthcare sector are expected to remain stable, as they are governed by existing government contracts.

These agreements, structured under the Ministry of Health’s Approved Product Purchase List, are set to run until 31 December 2026.

From an international perspective, Duopharma’s exposure to the United States–Iran conflict is considered minimal.

The Middle East accounts for only around 0.4 per cent of the company’s total export sales, limiting any direct impact on its revenue.

To strengthen its market position and sustain growth, the company is advancing a four-pronged strategy, which includes expanding its consumer healthcare (CHC) product portfolio.

Nevertheless, CIMB Securities has revised its earnings outlook for Duopharma downward, citing continued cost pressures.

Core net profit forecasts for 2026, 2027 and 2028 have been reduced by eight per cent, seven per cent and seven per cent respectively. - April 6, 2026