PETALING JAYA: Steel pole maker Mestron Holdings Bhd has entered into a head of agreement with Sinopharm Group’s Zhongyu Yexing (Chengdu) Industrial Co Ltd for the distribution of Covid-19 vaccine in Malaysia.
Zhongyu is one of the authorised distributors for Sinopharm’s China National Biotech Group vaccine.
With the agreement, both parties have mutually agreed to commence discussions and negotiations exclusively the details on the structure and terms of the proposed collaboration.
The two parties expect to finalise and enter into a definitive agreement within 30 days after the completion of the discussions and negotiations.
Mestron managing director Por Teong Eng stated that it has obtained a clearance letter from the Health Ministry to commence negotiation and cooperation with any companies from China for the importation, distribution, sale, marketing, use and application of the Covid-19 vaccine in Malaysia.
“Once we have firmed up the terms, we will submit an application to the National Pharmaceutical Regulatory Agency (NPRA) to register and get approval for the distribution of Covid-19 vaccine in Malaysia,” he said in a statement today.
Towards this goal, Por said that Zhongyu will provide support to ensure the group obtains the approval.
“Once we have obtained all the necessary approval, Zhongyu will supply the vaccine at preliminary estimation of 3 million doses or 1.5 million sets to Mestron in stages.”
For the venture, the group expects to invest RM20 million which will be funded via internally generated funds, bank loans and proceeds from private placement.
