KUALA LUMPUR (Sept 29): Kanger International Bhd has entered into a collaboration agreement with Sinopharm Group Hunan Changde Medical Co Ltd (SGHC) relating to the distribution of Covid-19 vaccine and medical equipment products in Malaysia.
In a filing with Bursa Malaysia, Kanger said the products are developed by state-owned China National Pharmaceutical Group Corp (Sinopharm).
Sinopharm is the largest and oldest biotech company in China, which is able to produce a wide range of vaccines in large quantities. The group has set up labs and production departments in Wuhan and Beijing respectively for the mass production of Covid-19 vaccines. It is understood that Sinopharm’s Covid-19 vaccines are currently under Phase 3 trials — the final stage before being approved for general use in more than 10 countries including United Arab Emirates, Bahrain, Peru, Morocco, Argentina, Pakistan, Serbia and Jordan.
Under the agreement, SGHC will appoint Kanger as the distributor of its products in Malaysia, while Kanger will promote and market the products for SGHC. The parties will enter into a separate distribution agreement in respect of the products’ price, purchase price and payment method.
Kanger is also granted the priority right of purchase of the products, in the event there are multiple purchasers that desire to acquire the products from SGHC.
The agreement will be effective for three years until Sept 24, 2023.
“Barring any unforeseen circumstances, any distribution agreements that arise from this collaboration is expected to contribute positively to the future earnings and earnings per share of the group over the tenure of the agreement,” Kanger said.
Kanger’s share price rose 0.5 sen or 2.44% to 21 sen today, giving it a market capitalisation of RM384.79 million.