KANGER (0170) KANGER INTERNATIONAL BHD enters deal to buy five million doses of Sinopharm Covid-19 vaccines
KUALA LUMPUR (July 19): ACE-Market listed Kanger International Bhd said its unit has entered a deal for the purchase of five million doses of Sinopharm Covid-19 vaccines for distribution in Malaysia.
The heads of agreement (HoA) was entered between its wholly-owned subsidiary Kanger Medical International Sdn Bhd and Sparmak Medical Equipment Trading LLC, according to Kanger’s filing with Bursa Malaysia today.
Sparmak Medical is an authorised partner of G42 Medications Trading LLC to purchase Sinopharm Covid-19 vaccines manufactured in the United Arab Emirates (UAE) under the Hayat-Vax brand.
Under the HoA, Kanger aims to purchase five million vaccine doses with deliveries commencing as early as July 2021.
The HoA also provides Kanger an option to subsequently purchase an additional five million vaccine doses.
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According to Kanger’s executive director Steven Kuah Choon Ching, this HoA represents the beginning of a long-term strategic venture to commence the distribution of these made-in-UAE vaccines into Malaysia.
“Amidst the limited supply of vaccines and surging cases, we believe it is vital to look for alternative sources of supply to expedite the vaccination efforts in Malaysia.
“The Hayat-Vax vaccine is essentially the same Sinopharm Covid-19 vaccine, manufactured in the UAE. Hence, we are confident that it will be well-received and accepted by the Malaysian people as an effective vaccine towards the global fight against the Covid-19 pandemic,” he said in a separate statement.
“Recently, the Sinopharm Covid-19 vaccine has been granted conditional approval for use in Malaysia and is now included in the country’s national vaccination programme.
"Moreover, the private Covid-19 vaccine market is expected to commence in August 2021, which would allow industry players to purchase their own vaccine supplies. These developments are positive steps towards the group’s plans in expanding into the healthcare segment," he said.
According to the company, the purchase price of the vaccines will be satisfied in cash via a combination of borrowings or internally generated funds, the proportion of which will be determined at a later date.
Barring any unforeseen circumstances, the HoA is expected to contribute positively to the earnings and earnings per share of the group for the financial year ending March 31, 2022 (FY22).
Furthermore, Kanger has also been authorised by G42 Medications to be the product registration holder and distributor of the Hayat-Vax vaccine in Malaysia.
On behalf of G42 Medications, Kanger has submitted the necessary applications to obtain the required approvals from the National Pharmaceutical Regulatory Agency (NPRA) for the Hayat-Vax vaccine to be used in the country.
At noon break today, Kanger’s share price fell half a sen or 7.14% to 6.5 sen, with some 64.86 million shares done. This gave the group a market capitalisation of RM181.75 million.