Ho Wah Genting mulls partnership with China’s biotech firm to produce COVID-19 vaccine

Ho Wah Genting mulls partnership with China’s vaccine maker to produce COVID-19 vaccine

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KUALA LUMPUR (Sept 9): Ho Wah Genting Bhd, which has jumped on the COVID-19 bandwagon, is considering appointing Xinkexian (Beijing) Biotechnology Co, Ltd (XKX) as its non-exclusive manufacturer to produce COVID-19 vaccines.

In a filing with Bursa Malaysia today, Ho Wah said its wholly-owned subsidiary HWGB Biotech Sdn Bhd has entered into a Memorandum of Understanding (MoU) with XKX for a possible partnership.

“The MoU aims to appoint XKX as a non-exclusive manufacturer to produce the vaccines upon successful completion of the research and development (R&D) of vaccines, immunological treatment and diagnostic product development in relation to the COVID-19 virus and upon approval from the US Food and Drug Administration,” said Ho Wah.

Based in Anhui province in China, XKX is principally engaged in the R&D of preventive vaccines for human use, manufacture, marketing and sales agent of preventive vaccine.

The group said the MoU is not expected to have any material effect on its earnings, net assets, gearing, share capital and substantial shareholders’ shareholding for the financial year ending Dec 31, 2020.

“Should the business materialise, it is expected to contribute positively to the future earnings of the group,” said Ho Wah.

Shares of Ho Wah Genting closed 9.5 sen or 11.45% lower at 73.5 sen today, valuing the  group at RM383.79 million

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S Kanagaraju