Biotechnology major Biocon has bagged a MYR 300 million (about Rs 460.5 crore) contract from the Ministry of Health, Malaysia to supply recombinant human insulin formulations for a period of three years.
The rh-insulin manufactured by Biocon at its large scale bio-pharmaceutical facility in Johor, Malaysia is the country's first locally manufactured biosimilar biologic product.
The facility, which has been built at an investment of USD 250 million has started commercial operations in the third quarter this fiscal. It will significantly expand the company's current insulin manufacturing capacity, Biocon said.
Commenting on the development, Biocon Chairperson & MD Kiran Mazumdar-Shaw said: "We are pleased to support the Ministry of Health of Malaysia in providing high-quality, affordable, rh-insulin for people with diabetes in Malaysia".
The company expects the Malaysian facility to cater to the growing needs for affordable insulins across the globe, she added.
Other regulatory filings and audits are currently underway to enable commercial sales to several emerging markets from the new Malaysian manufacturing facility, Mazumdar-Shaw said.
Once the facility receives approvals to sell its insulins in those emerging markets, it would boost the company's revenue from the biologics segment, she added.
"Biocon SDN. BHD. Has been awarded a MYR 300 million contract to be serviced over a period of three years for supplying rh-insulin cartridges and re-usable insulin pens under the Malaysian government's Off-Take Agreement (OTA) initiative...," Biocon said.
The contract is extendable for an additional two years period subject to approval by the Government of Malaysia, the company said.
Biocon will distribute insulins and insulin delivery devices through Malaysia's CCM Pharmaceuticals, it added.
Revenue from the biologics segment grew 61 per cent to Rs 120 crore in the third quarter from a year-ago period on account of increased sales of insulins and biosimilar antibody drugs, Biocon said.
Shares of Biocon today closed 2.53 per cent up at Rs 1,023.70 apiece on BSE.
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