PETALING JAYA: LYC Healthcare Bhd is expanding its nutraceutical segment via the proposed acquisition of a 70% stake in Clinical Nutrition Intl (M) Sdn Bhd for RM2.24 million cash.
Clinical Nutrition is mainly involved in the supply of nutraceutical ingredients and owns a 50% shareholding in two proprietary probiotic strains, namely Lactobacillus Plantarum DR7 (DR7) and Lactobacillus Fermentum DR9 (DR9), of which DR7 has already been commercialised and patented. It is also involved in the formulation and sale of an oat drink brand to reduce cholesterol and lower blood glucose levels.
LYC will streamline the interest in all its nutraceutical companies under LYC Nutrihealth Sdn Bhd (LYCN), a wholly owned subsidiary under LYC Medicare Singapore Pte Ltd. LYCN will enter into a put option agreement with the vendors of Clinical Nutrition for the remaining 30% shareholding which will be exercised from Sept 28, 2024, and expire by Sept 27, 2027.
LYC managing director cum group CEO David Sui Diong Hoe said iun a statement today with rising awareness and consumption of health and wellness supplements, it is timely to enhance market presence by developing more products.
“Clinical Nutrition has two ownership of probiotic strains that have demonstrated to successfully benefit overall health. Looking ahead, there are ample opportunities for us to monetise these strains by leveraging on Aqurate Ingredients Intl (M) Sdn Bhd’s sales network and working together with foreign parties for international distribution,” he added.
Currently, LYC’s nutraceutical business is mainly driven by Aqurate, which supplies ingredients and provides solutions to the food & beverage, nutraceutical, pharmaceutical and cosmeceutical industry as well as Microbiome Intl (M) Sdn Bhd that is involved in research and development of food and health ingredients, and registration of nutraceutical and pharmaceutical related products with the authorities.
The proposed acquisition is expected to be completed within three months.
