KUALA LUMPUR (Oct 6): Bintai Kinden Corp Bhd, whose share price has soared more than six times since August, has entered into a distribution and licensing agreement (DLA) with US-based firm Generex Biotechnology Corp and its subsidiary NuGenerex Immuno-Oncology Inc for their Covid-19 vaccine in Malaysia.
This agreement is in relation to the memorandum of understanding and heads of agreement signed between the respective companies in August and September.
According to a filing with Bursa Malaysia today, its subsidiary Bintai Healthcare Sdn Bhd is granted the exclusive right to distribute, sell and commercialise the Covid-19 vaccine.
The company said Bintai Healthcare will be purchasing the vaccine in naked vial form from Generex or NuGenerex in batches, which will also include all royalties and distribution/licensing, upon approval by the US Food and Drug Administration (FDA) on the vaccine and the relevant Malaysian authorities.
In consideration for the Intellectual Property (IP) rights, commercialisation rights, distribution rights, licensing rights and other rights granted by Generex or NuGenerex to Bintai Health under this DLA, the company shall make payable a sum of US$2.63 million for pre-commercialisation stage as well as US$10 million for commercialisation stages.
Bintai Health is given total and complete exclusive rights to sell, distribute, or in any other manner, commercially exploit and deal with the vaccine in Malaysia and will also have the right of first refusal to commercially exploit the vaccine within New Zealand, Australia and the Global Halal markets.
“In the event the market size is significantly large and it makes commercially viable and financially appropriate sense to carry out local manufacturing, the parties will enter into a manufacturing agreement, the terms of which will be determined at that appropriate stage,” said Bintai Kinden.
Only after Generex or NuGenerex has obtained the full FDA approvals application for the Covid-19 vaccine, shall Bintai Health be responsible for all requirements of the Malaysian Ministry of Health, said the company.
At 3.44 pm, shares of Bintai Kinden were 2.5 sen or 3.65% lower at 66 sen, valuing it at RM208.48 million. Some 80.62 million shares were traded, making it the eighth most actively traded counter on Bursa Malaysia now.