KUALA LUMPUR (May 18): LYC Healthcare Bhd (LYC) is partnering with Biofresh Hygiene Services Sdn Bhd to market cleanliness, hygiene and sanitation services in Malaysia amid rising awareness of hygiene due to the Covid-19 pandemic.
Its wholly-owned subsidiary LYC Medicare Sdn Bhd had entered into a hygiene and disinfection services collaboration agreement with Biofresh where the former will market a range of cleanliness, hygiene and sanitation services on behalf of the latter.
“The range of cleanliness, hygiene and sanitation services includes manual and automatic hand sanitiser dispensers, hand soap dispensers, toilet seat sanitisers, lady bins as well as disinfection services,” said LYC in a filing with Bursa Malaysia today.
LYC Medicare will be granted the rights to use all the marketing materials developed by Biofresh to generate sales for Biofresh hygiene services, valid for a period of three years and may be extended subject to mutual consent of the two parties in writing.
Through this agreement, LYC Medicare will be entitled to 30% of revenue generated in Malaysia from clients secured by the company, with the amount being exclusive of all applicable taxes.
Thus, this agreement will have a positive impact on the company’s earnings and net asset per share for the financial year ending March 31, 2021 (FY21).
Some of the services offered include disinfection services using ultra-low-volume (ULV) misting for the entire space of the targeted area — rapid antimicrobial prevention is achieved within three minutes with a kill rate of up to 99.99%.
The solution used had been approved by the US Environmental Protection Agency (EPA) and the US Food and Drug Administration (FDA) for application in healthcare and public health, said LYC.
“The active ingredient has been tested and proven effective against coronaviruses (Covid-19), while also being environmentally friendly as it leaves behind non-hazardous residues and is 100% biodegradable,” said LYC, adding that services of manual and automatic hand sanitiser dispensers provide a convenient and fast way to sanitise hands with a solution containing a 70% alcohol content, making it effective in inhibiting bacteria and viruses.
This agreement did not come as a surprise as it was in line with the company’s current business direction and strategy to increase revenue and profit contributions from the healthcare services business segment.
“LYC intends to leverage on its healthcare platform and customer base to generate additional sales and marketing leads to adopt the usage of Biofresh hygiene and sanitation services,” said LYC.
Last week, LYC also announced a partnership with local IT company Forwen Sdn Bhd to market a Covid-19 contact tracing app, named the Forwen Tracker, in Malaysia.
Shares in LYC closed half a sen or 1.2% lower at 41 sen today, valuing the company at RM145.7 million.
The counter has risen some 215% since falling to 13 sen on March 26 this year.