Hong Seng Buys Stake In Immusafe Covid+ Biochip Distributor RZAC For RM20 Million

Hong Seng Consolidated via subsidiary HS Bio Supplies is proposing to acquire a majority stake of 51% in RZAC Immunesafe Sdn Bhd the sole distributor for Immusafe Covid+ Biochip for a consideration of RM20 million.

RZAC is currently the sole distributor of the Immusafe COVID+ Biochip, a comprehensive neutralising antibody testing kit which has been approved for use by the Medical Device Authority. Immusafe COVID+ Biochip has an accuracy of 100% as validated by the Institute of Medical Research and higher sensitivity of 100% compared with other antibody tests currently in the market which have lesser accuracy rate and are mostly single-antigen antibody tests kits.

RZAC is also the strategic collaborative partner of Malaysia Automotive Robotics and IoT Institute (“Marii”) and IMR which are jointly spearheading the Immusafe COVID+ Biochip testing through Neogenix Laboratoire which is 60% owned subsidiary of HS Bio for the purposes of conducting neutralising antibody testing on the population.

According to filings, the vendors will deliver a guaranteed profit after taxation of RM40 million within a period of 12 months from 1 October 2021.The profit guarantee provided by the Vendors is in view of RZAC’s secured orders and commitments from both private and public sectors as it expects to supply Biochip test kits generating an estimated revenue of up to RM250 million, in addition to its future prospects upon Malaysia achieving national herd community whereby antibody tests will play the next important role by assisting the gradual opening of the community, economy and borders.

Hong Seng ED Christopher Chan said that proposed acquisition is part of the continuous initiatives of HS Bio to drive its healthcare business forward and enable HS Bio to have the exclusive distribution rights of the Immusafe COVID+ Biochip.

“The detection of neutralising antibodies and the quantity on whether it meets a certain threshold is the only recommended and comprehensive neutralising antibody testing. Most commercial antibody tests are not robust enough and can only provide positive results, which indicate an immune response has occurred. Meanwhile, ImmuSAFE COVID+ biochip is the world’s first lab-based biochip test for COVID-19 that enables highly quantitative determination of both the level and target location of SARS-CoV-2 antibodies in an individual and is relevant to gauge against all vaccines on offer in Malaysia currently compared to some in market which gives a wrong representation as it does not measure the response for certain vaccines giving the impression that certain vaccines are ineffective or the patient did not receive the proper dosage.”

The proposed acquisition comes as a natural extension of HS Bio’s capabilities and will immediately offer value accretive from an earnings and service capability perspective.

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