By SHAHEERA AZNAM SHAH / Pic BLOOMBERG
SOLUTION Group Bhd has entered into an agreement with the Ministry of Health (MoH) to supply 3.5 million doses of Covid-19 vaccines produced in China to the government.
The technology company said its wholly-owned subsidiary, Solution Biologics Sdn Bhd (Solbio), had signed a term sheet agreement on Jan 29 with MoH to supply the recombinant Ad5-nCoV — a Covid-19 prevention medication jointly developed by CanSino Biologics Inc and Beijing Institute of Biotechnology, which is a part of the Academy of Military Medical Sciences.
Solution added that MoH is expected to purchase 3.5 million vials of vaccine from Solbio under several conditions including pro- duct registration and market authorisation of the vaccine obtained from Drug Control Authority by April 2021.
It added that Solbio also has to comply with the lot release requirement in Malaysia and obtain the “Type A” licence under the Poison Act 1952 before the signing of the supply agreement.
The vaccine will be delivered from Solbio storage facility to the government’s appointed central store or logistics partner.
Barring any issues, Solution expects the deal to contribute positively to its earnings for the financial year ending Dec 31, 2021.
CanSino is a biotech company based in China dedicated to developing novel vaccines and therapeutics for unmet medical needs. It has been developing a novel recombinant Ad5-nCoV vaccine composed of an adenovirus type- five vector, a liquid for injection.
Solution’s share price rose 11 sen, or 7.97% to RM1.49 yesterday, ahead of the announcement to the exchange.
Solution is among several non-healthcare firms like Bintai Kinden Corp Bhd, Kanger International Bhd, MyEG Services Bhd, Yong Tai Bhd and Ho Wah Genting Bhd that have expressed interest to distribute Covid-19 vaccines in the country.
The government is planning to vaccinate 80% of the country’s population of 32 million by the first quarter of 2022 (1Q22) and is expected to spend about RM3 billion on the vaccine procurement.
Putrajaya has secured vaccine supply for 40% of the population or 12.8 million people through agreements with Pfizer Inc and AstraZeneca plc, as well as from the World Health Organisation-backed international vaccine distribution programme, Covax.
The bulk of these vaccines will be handled and distributed by Pharmaniaga Bhd. Malaysian has recorded 48,771 active Covid-19 cases so far, including 4,571 new cases confirmed yesterday.