The recently- secured contract for generic Tamiflu is expected to boost CCM Duopharma Biotech Bhd earnings for financial year (FY) 2010, says OSK Research.
"Although the contribution is only incremental to earnings, we are positive overall on this contract as it will enhance CCMD's earnings anyway," it said in a research note Wednesday.
Thus, the research house said it has upgraded FY10 earnings forecast of CCMD by 5.8 percent, while maintaining its 2009 forecast.
The RM32 million contract awarded to CCMD in October 2009 represented 50 percent of the total government contract for the supply of the generic Tamiflu.
CCMD also believes there is upside potential for the current contract given that currently it only covers 10 percent of the total population against the government's goal to achieve about 20 percent stockpile of the nation's populace.
In a recent meeting with the CCMD management, OSK said the group also expects its upcoming human vaccines fill and finish (F&F) to drive earnings momentum from FY11 onwards. (PNA/BERNAMA)
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