MyEG jumps 13% to highest level since May 2018 on deal to distribute vaccine

MyEG jumps 13% to highest level since May 2018 on deal to distribute vaccine
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KUALA LUMPUR (Dec 7): Shares in MyEG Services Bhd jumped 13.26% to their highest level since May 2018 this morning after the firm said it had entered into a cooperation with Anhui Zhifei Longcom Biopharmaceutical Co Ltd (Zhifei) to obtain Malaysian halal certification for the Chinese biopharma company’s Covid-19 vaccine, and to exclusively distribute the vaccine in Malaysia for a three-year period.

At 10.30am, MyEG had risen 24 sen to RM2.05, valuing it at RM7.49 billion.

The deal with Zhifei comes on the back of the firm securing a three-year extension for the e-government services it provides.

In a statement today, MyEG said the two companies had signed a memorandum of understanding (MoU), agreeing to cooperate in conducting Phase 3 clinical trials of Zhifei’s vaccine in Malaysia and in achieving compliance with halal status requirements to secure halal certification from the Department of Islamic Development Malaysia (JAKIM).

MyEG said the commencement of the Phase 3 trials will make Zhifei’s vaccine one of the first to undergo the final-stage trials in Malaysia under the purview of the Ministry of Health (MoH).

Zhifei is a subsidiary of Chongqing Zhifei Biological Products Co Ltd, which is listed on the Shenzhen Stock Exchange and has been engaged in the biological product industry since 2002, mainly the production of vaccines for human use. Zhifei is presently one of five Chinese companies conducting Phase 3 clinical trials of their Covid-19 vaccines in various parts of the world.

Upon successful completion of the Phase 3 trials, MyEG will be the sole distributor of the vaccine in Malaysia.

Meanwhile, since Nov 1, 2020, MyEG has been appointed by the MoH to develop and operate the MySafeTravel digital health pass system to facilitate inbound travellers’ compliance with mandatory Covid-19 testing and quarantine requirements.

In addition, MyEG also operates a one-stop portal for Covid-19 screenings of workers in the country, which includes a data-sharing collaboration with the Department of Labour of Peninsular Malaysia.

Read also:
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