HEALTHCARE services provider TalkMed Group posted a 17.7 per cent rise in net profit to S$14.3 million for the six months ended Jun 30, 2023, up from S$12.1 million in the corresponding period a year earlier.

The rise in net profit came on the back of higher revenue of S$37.8 million, up 16.4 per cent from the S$32.5 million that the group posted the year before.

In a bourse filing on Monday (Aug 7), the group said that revenue grew as there were no travel restrictions in the first half of this year, while such restrictions were still in place until April 2022.

By segment, the group saw revenue from oncology services climb 19.9 per cent to S$37.5 million.

The group said that while its oncology segment saw patient numbers improve, it has yet to see numbers return to pre-pandemic levels.

“We face challenges from growing competition in the region, as a result of a strong Singapore dollar relative to the currencies in the region and investments to build up healthcare infrastructure and expertise in the region,” it said.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

It expects foreign patient numbers in 2023 to be comparable to 2022.

Furthermore, TalkMed said that the Ministry of Health’s introduction of the Cancer Drug List (CDL) has also impacted patient numbers, as patients had to bear higher out-of-pocket payments for cancer treatments.

Since it was introduced in September 2022, only treatments on the CDL may be claimed under Medishield Life, Medisave and Integrated Shield plans.

Meanwhile, revenue derived from its 60 per cent-owned subsidiary, CellVec, for cellular and gene therapy-related products fell 73.8 per cent to S$0.32 million.

The group said that CellVec has been successful in manufacturing lentiviral vectors, which are used in gene therapy.

The subsidiary is better positioned to take on biotech clients in the next 12 months, added the group, when it expects a pick-up in venture funding within the cell and gene therapy sector.

The company has declared an interim dividend of S$0.009 per share which will be paid on Aug 22. This is lower than the interim dividend of S$0.015 per share which was paid in the corresponding period a year ago.

TalkMed shares shed 4.7 per cent, or S$0.02 to S$0.405 on Monday, before the results were released.