KUALA LUMPUR: Shares of Duopharma Biotech Bhd hit a near 13-month low of RM2.35 yesterday ahead of its shareholders’ meeting today for the proposed bonus issue.

       It closed down 12 sen to RM2.38. There were 3.14 million shares traded at prices ranging from RM2.35 to RM2.50.

       At RM2.35, this was the lowest since July 22 last year.

       According to traders, there were no negative news about the company in recent days but the slump in the share price could impact investor sentiment at the EGM.

       Its share price had risen to a high of RM4.28 on Nov 10 last year. It then slipped to a low of RM2.44 on March 10 and rebounded to RM3.60 on June 1.

       Traders said the share price had run up ahead due to the Covid-19 vaccine interest.

       A shareholders meeting will be held today to approve its bonus issue of 235.44 million shares on the basis of one bonus share for every three existing shares held.

       Recently, Duopharma received conditional registration approval from Malaysia’s Drug Control Authority for the Covid-19 Sinopharm vaccine developed by China National Biotec Group Co Ltd.

       This followed Duopharma’s application for product registration of the vaccine, which is an inactivated virus vaccine registered under the name Covilo Suspension for Injection Covid-19 Vaccine (Vero Cell).

       On July 19, CGS-CIMB Equities Research said it was retaining its “add” call for Duopharma with an unchanged target price of RM3.67, due to the potential long-term earnings prospects from the development of vaccine manufacturing capabilities, which is a key re-rating catalyst.

       It said it was keeping its forecasts intact for now pending the details or further developments in the supply agreement for the Sinopharm vaccine, which it believes could be signed by end of the month.