The Malaysian government has agreed to extend its insulin supply agreement with Biocon Biologics for an additional six months beyond the current 36-month contract period. The extension will run from April 29, 2025, until October 28, 2025, as announced by the company in a recent stock exchange filing.
The contract is jointly held by Biocon's Malaysian subsidiary, Biocon Sdn. Bhd., and local partner Duopharma Marketing Sdn. Bhd. (DMktg). Under the arrangement, Biocon manufactures the insulin products while DMktg handles distribution throughout Malaysia's healthcare system.
"The amendment to the contract will be formalised through the execution of a formal supplementary agreement between the Ministry of Health, DMktg and Biocon subsequently," the company stated.
Contract Details and History
The original three-year insulin supply contract was awarded in 2022 and valued at approximately $90 million (₹760 crore). The agreement covers Biocon's recombinant human insulin brand Insugen, which is manufactured at the company's production facility in Johor, Malaysia.
This extension reinforces Biocon's position as a key supplier to Malaysia's healthcare system. The Insugen formulations are available to patients across all Ministry of Health hospitals, district health offices, and health clinics throughout the country.
Biocon's Presence in Malaysia
Biocon Biologics has established a significant footprint in Malaysia over the past decade. The company operates a state-of-the-art recombinant human insulin production facility and a Center of Excellence (CoE) for insulins in the country.
This isn't the first contract Biocon has secured with the Malaysian government. In September 2021, Biocon Biologics' Basalog (biosimilar Insulin Glargine) was awarded a multi-ministry pooled tender worth $4.2 million (approximately ₹36 crore) by Malaysia's Ministry of Health for a two-year period.
Strategic Importance
The contract extension highlights the strategic importance of Malaysia in Biocon's global operations. The company's Malaysian manufacturing facility plays a crucial role in its insulin production network, serving both local needs and potentially supporting export markets.
For Malaysia, the partnership ensures continued access to essential insulin products for diabetic patients across the country's public healthcare system. The extension provides continuity of care while allowing the Ministry of Health time to plan for future procurement arrangements.
The formal supplementary agreement between the Ministry of Health, DMktg, and Biocon is expected to be executed in the coming weeks to finalize the terms of the six-month extension.
