Are top Malaysian pharma companies set to gain from vaccine availability?

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Top Malaysian Pharmaceutical Companies Poised for Gains with Vaccine Availability

Duopharma Biotech and Pharmaniaga, identified as the leading pharmaceutical firms in Malaysia, are anticipated to be the primary beneficiaries upon the availability of a Covid-19 vaccine. This outlook is supported by recent market movements and institutional investor confidence, with Duopharma Biotech's stock price exhibiting a consistent increase since July, driven by optimism surrounding vaccine development. An analyst has reiterated a long-term 'buy' recommendation for Duopharma, reflecting sustained positive prospects for the company.
Institutional Investor Confidence Boosts Duopharma

The Employees Provident Fund (EPF) has notably increased its stake in Duopharma Biotech, a move that is expected to further propel its upward stock momentum. This increased holding by a major institutional investor signals confidence in the company's future performance, particularly in light of the anticipated demand for Covid-19 vaccines. As of late evening on the reporting date, Duopharma's stock had climbed by five sen to RM3.38, with a trading volume of 1.94 million shares.
Analyst Maintains Long-Term Buy Prospect

An industry analyst has sustained a 'buy' prospect for Duopharma Biotech for the long term, underscoring the company's favourable position in the evolving pharmaceutical landscape. This recommendation is informed by the expectation that pharmaceutical companies involved in vaccine distribution will experience significant growth. The analyst also noted that retail investors often follow the trends set by institutional investors, who typically adhere to a "buy low, sell high" strategy.
Major Shareholders and Market Position

Duopharma Biotech's shareholder structure includes the Bumiputera Investment Foundation as the majority owner with a 46.5 per cent stake, followed by EPF holding 7.82 per cent and Permodalan Nasional Bhd with 4.94 per cent. Alongside Pharmaniaga, which is under the ownership of the Armed Forces Fund Board (LTAT), Duopharma is recognised as one of Malaysia's top two pharmaceutical companies, positioning them to capture substantial market share once Covid-19 vaccines become accessible.

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Are top Malaysian pharma companies set to gain from vaccine availability?

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