Klang - CCM Duopharma Biotech Berhad (CCMD)''s revenue rose to RM123.77 million for the financial year ended December 31, 2009 from RM122.87 million in the corresponding period last year.

The Company''s profit before tax (PBT) also grew eight per cent to RM38.21 million from RM35.34 million in the same period.

The Board of Directors has recommended a final tax exempt dividend of 10 per cent (5.0 sen) per share and also dividend of 14 per cent  (7.0 sen) per share less 25 per cent income tax (2008: a final tax exempt dividend of 14 per cent (7.0 sen) per share). The total dividend for the financial year ended December 31, 2009 is 36 per cent (18.0 sen) per share amounting to approximately RM22.67 million. In 2008, the Company declared an interim and final tax exempt dividend of 16 per cent (8.0 sen) and 14 per cent (7.0 sen) per share respectively amounting to approximately RM20.83 million.

Meanwhile, CCMD recorded a 4.1 per cent increase in its first quarter revenue to RM28.8 million for the period ended March 31, 2010 from RM27.7 million in the corresponding period last year. The improvement in CCMD''s first quarter revenue was mainly due to increased sales to the Government.

However, CCMD''s PBT fell 27.5 per cent to RM6.8 million in that quarter from RM9.4 million posted in the same quarter in 2009. The decrease in PBT was attributed to lower margins generated by sales to Government hospitals coupled with limitation of import permits for controlled drug raw material during the quarter.

The Board of Directors does not recommend payment of an interim dividend for this quarter.

CCMD Chairman, Tan Sri Dato'' Dr Abu Bakar Suleiman told the Company''s ninth Annual General Meeting here that CCMD had implemented various measures to meet the demands of the Government and private sector to strengthen its business and gain greater profitability in the years ahead.

In comparison with the fourth quarter of 2009 performance, CCMD experienced a drop in its first quarter revenue and PBT from RM29.9 million and RM8.6 million respectively from the preceding quarter. The decrease in revenue was a result of seasonal decline in demand in the local private market and overseas sales while the fall in PBT was due to the significantly lower procurement of import permits for psychotropic and dangerous drugs.

"Despite the minor setback, we are optimistic that our efforts will withstand the challenges and boost our profitability in the year ahead.

"We recently secured a three-year contract from the Government worth RM32 million to provide Oseltamivir (Omiflu), CCMD''sgeneric anti-viral drug to treat and prevent infections due to the influenza A(H1N1) virus. This contract will meet the Government''s demand for anti-retro virals (ARV) and is expected to improve our earnings in 2010," said Tan Sri Dato'' Dr Abu Bakar.

CCMD also spent RM7 million to establish the first inert vaccines fill and finish facility in Malaysia. The facility is suitable for vialling of CCMD''s bulk vaccines in the pipeline capable of compounding, filling, freeze drying, capping, inspecting, labeling and packing inert vaccines. The investment includes the remodeling and upgrading of CCMD''s small volume injectables (SVI) plant and aims to achieve optimal utilization by tapping the overseas markets such as Indonesia, Thailand and Vietnam.

Additionally, CCMD obtained a two-year extension of its contract to supply SLN 30 to the Government for HIV/AIDS treatment. CCM Duopharma Biotech Berhad is a subsidiary of CCM Berhad which is listed on the main board of Bursa Malaysia and is a key player in the fertilizers, chemicals and pharmaceuticals industries.

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Issued with the compliments of Chemical Company of Malaysia Berhad
TBy Eric Pringle Associates Public Relations Sdn Bhd.
For further information, please contact Ida Fazila Ismail
at Tel no: 21617144 or email: ifazila@epapr.com.my