YONGTAI (7066): YONG TAI BHD to collaborate with Chinese company in Covid-19 vaccine development, distribution in Malaysia
KUALA LUMPUR (Dec 4): Property developer Yong Tai Bhd has entered into a heads of agreement (HoA) with China-based Shenzhen Kangtai Biological Products Co Ltd (SZKT) for a proposed collaboration on the development and exclusive commercialisation of the latter's inactivated Covid-19 vaccine in Malaysia.
SZKT is currently developing a Covid-19 Inactivated Vaccine (Vero Cells) against the coronavirus,according to Yong Tai in a stock exchange filing today. Under this collaboration, Yong Tai will be SZKT's partner in Malaysia to conduct Phase III clinical trials and exclusive commercialisation of the vaccine.
To support this collaboration, Yong Tai said it has also entered into an advisory and service agreement (ASA) with Klinsel Sdn Bhd to appoint Klinsel as the Contract Research Organisation (CRO) for the proposed clinical study of the Covid-19 vaccine to be conducted in Malaysia.
Upon the successful conclusion of the Phase III clinical trial or emergency usage approval being obtained in Malaysia, whichever is earlier, Yong Tai said the parties plan to cooperate on a vaccine procurement programme of approximately 100 million doses of the vaccine over a five-year period, of which the committed quantity for the first three years shall be not less than 20 million doses per annum.
"Yong Tai believes that the proposed partnership is in the best interests of the company and its shareholders, because of the diversification of revenue stream through the sale and distribution of vaccines in light of the Covid-19 pandemic," Yong Tai's filing read.
"Barring any unforeseen circumstances, the proposed collaboration is expected to contribute positively to YTB’s revenue in the future," Yong Tai added.
SZKT, which is listed on the Shenzhen Stock Exchange, is principally involved in developing and manufacturing human vaccines. It has more than 30 kinds of vaccines under development, according to Yong Tai.
Meanwhile, Kinsel is a CRO that offers a comprehensive package of research services for the pharmaceutical and biotech industry.
Shares in Yong Tai rose 7 sen or 23.73% to close at 36 sen per share today, for a market capitalisation of RM373.91 million.