Metronic to make up to RM180m profit from Covid-19 vaccine

20 Nov 2020 / 18:19 H.

PETALING JAYA: Metronic Global Bhd, through its subsidiary Metronic Medicare Sdn Bhd, has inked a memorandum of agreement (MOA) with Taiwan Stock Exchange-listed international pharmaceutical company Medigen Vaccine Biologics Corp (MVC) for its Covid-19 vaccine.

MVC is a vaccination company and a comprehensive biopharmaceutical manufacturer incorporated in Taiwan dedicated to preventing emerging infectious diseases with expertise in developing cell-based vaccines and biosimilar products based on core competencies which includes research and development, clinical development, mass production and regulatory submission. The company develops flu vaccine, enterovirus vaccine, and other related products. MVC markets its products throughout worldwide.

Last Friday, MVC won a 470 million yuan clinical subsidy contract from the Taiwanese Central Disease Control (CDC), and is the first company to receive Taiwan government subsidies among the four domestic companies approved by the CDC to conduct human clinical trials.

MVC CEO Charles Chen Chien Jen said it has developed a Covid-19 vaccine which has entered clinical development and is requesting Metronic Medicare to distribute the MVC vaccine in Malaysia and potentially other countries.

Metronic is one of the leading engineering and solution providing corporations in Malaysia. Its subsidiary company Metronic Medicare focuses on research & development, importer and distributor on medical related products in Malaysia and South East Asia Region, and wishes to obtain exclusive distribution rights for MVC’s Covid-19 vaccine.

Metronic CEO cum executive director Hoo Wai Keong said this MOA establishes the basis for negotiation between the parties with the view of entering into a distribution agreement pursuant to which Metronic Medicare will distribute the MVC vaccine in Malaysia and potentially other countries.

Metronic Medicare will, at its own cost and expense, obtain all product registrations in Malaysia in its name or MVC’s name as will be separately agreed in the distribution agreement and MVC will support required clinical development by supplying MVC vaccine at a discounted price.

“In the forthcoming distribution agreement, MVC will supply Metronic Medicare with MVC vaccine in pre-filled syringes or multi-dose vials formulated for immediate vaccination into humans for distribution by Metronic Medicare in Malaysia and potentially other countries,” said Hoo.

“MVC will be supplying an estimated three million doses of finished product during calendar year 2021, contingent upon Metronic Medicare notifying MVC on or before Dec 31, 2020 of its commitment to purchase such number of doses. It is understood that there will be a minimum three month lead time between MVC’s receipt of each binding purchase order and delivery,” said Chen.

MVC agrees to sell the finished product to Metronic Medicare during 2021 at a price which is not more than the equivalent of US$50 per dose with the specific price to be negotiated. At US$50 per dose, the estimated total order book is RM600 million for Metronic with an estimated industry wide gross margin of 20% to 30% or estimated gross profit of RM120 million to RM180 million.

The parties may also consider an arrangement under which MVC will supply bulk antigen to a third party manufacturer in Malaysia agreed to by the parties for fill/finish and packaging to produce the finished product for distribution by Metronic Medicare in Malaysia and potentially other countries.

“To implement this MOA, the parties agree that within one month after the signing of the MOA, Metronic Medicare will deposit US$1.5 million with MVC and apply the refundable deposit to the purchase price of orders for the finished product.”

“And within one month after the signing of the MOA, MVC will produce and provide Metronic Medicare with a draft distribution agreement whereupon the parties shall pursue negotiation to agree to the final terms and sign the distribution agreement. The final distribution agreement will be signed within three months from the effective date,” Hoo concluded.

email blast