PETALING JAYA: K-One Technology Bhd, via K-One MediTech Sdn Bhd, has signed a licence agreement with Star Syringe Ltd based in the United Kingdom to manufacture syringe safety needle caps (K4 Products) on an exclusive basis in Malaysia and distribute it worldwide on a non-exclusive basis.
Under the agreement, K-One MediTech is entitled to manufacture the K4 Products in Malaysia on an exclusive basis on condition that volume production of 100 million units a year has commenced at its facilty within 24 months.
Manufacturing is expected to start by end first-quarter 2021, with the cost estimated at RM6 million. The capital investment in making the moulds, buying machines and other related capital expenditure will be financed with internally generated funds.
In its Bursa filing, the group said according to the World Health Organization, it is estimated that 16 billion injections are administered worldwide for various purposes which include curative care, immunisation, transfusion of blood, intravenous administration of drugs or fluids and injectable contraceptives.
The indicated large market size is expected to be further amplified when the Covid-19 vaccine is commercially launched between this year end and the first half of 2021, as claimed by various reputable vaccine producers throughout the world.
“When this happens, the number of injections administered worldwide will spike over the next few years as a substantial portion of the world’s population of approximately 8 billion gets progressively inoculated with the Covid-19 vaccine,” it said.
The group said it will apply for approval from the Medical Device Authority prior to launching its sale in Malaysia through distributors, syringe producers and direct sales to hospitals.
For overseas sales which holds the majority of the market potential, it will appoint distributors in identified markets with significant potential such as the US, Canada, the UK, Germany, France, Australia, Indonesia, India, China and Japan in its initial marketing programme.
Concurrently, it also intends to work with the major syringe producers in the world for bundling with their syringes.
