NEXGRAM (0096): NEXGRAM HOLDINGS BHD inks partnership with US drug manufacturer to supply vaccines in Indonesia
KUALA LUMPUR (Dec 10): Software company Nexgram Holdings Bhd said its wholly-owned unit Vaccines Lab Sdn Bhd and US firm Rafarma Pharmaceuticals Inc will establish a joint-venture to manufacture and distribute Covid-19 vaccines in Indonesia.
Rafarma is principally engaged in the manufacture and marketing of pharmaceutical goods. It produces all types of medical drugs in all delivery methods for various pharmacological groups.
The two companies inked a master strategic joint venture agreement on Dec 3, said Nexgram in a filing today.
As part of the agreement, it said the two companies will be working towards participating in the various phases of the Covid-19 clinical trials in Malaysia and Indonesia.
The joint-venture also aims to get access to a dedicated allocation of the vaccine for worldwide distribution, in particular to get exclusive rights to distribute within the Southeast Asia market.
Nexgram said Rafarma will be responsible for the supply of Covid-19 products, while Vaccines Lab will be responsible for assisting the newly-formed joint venture company in its authorisation in target markets, as well as facilitating the registration and conduct of local clinical trials of the products, if necessary.
Nexgram said in the event of vaccine manufacturing plant development, Rafarma is desirous to secure investment of about US$1 billion for the joint venture.
“Rafarma shall subscribe to 51% of the joint-venture company in the form of preference shares, subject to the approval of such ownership by the Indonesian government.
“The production capacity of the plant is designed for 500-600 million doses, covering the needs of the entire territory of Indonesia and the ASEAN countries,” it added.
Shares of Nexgram were unchanged at five sen today, for a market capitalisation of RM133.06 million.