Bioalpha Holdings Berhad through its wholly-owned indirect subsidiary, and its joint venture partner, Suzhou Medical System Technology Co. Ltd. have completed further injection of assets into their joint venture company, with Suzhou BioMedic Biotechnology Co. Ltd. now having a combined value of RMB16.1 million (~RM10.4 million)
The group said the capital injection into BioMedic was in the form of intangible assets comprising formulations worth RMB10.1 million (~RM8.4 million), as valued by independent appraiser. These intangibles are four key proprietary formulations meant for immunity boosting, general well-being, and anti-aging requirements. Meanwhile, MEDIC has invested an additional RMB6.0 million (~RM3.9 million) in cash into BioMedic.
Managing Director of Bioalpha, Mr. William Ho commented, “The latest round of capital injection marks a milestone for Bioalpha as we have successfully monetised the formulations we developed in areas with high market potential for commercialisation. It reflects the strength of our R&D capability, as well as the Group’s commitment to expand our presence in the fast-growing health supplement market in China.”
The health supplements market in China is on the rise with an estimated size at RMB271 billion (~RM175 million) in 2021. With the current growth rate of 10%* per annum, China is set to become the largest health supplement market in the world by the end of the decade.
BioMedic’s principal activities involve conducting R&D and clinical trials to substantiate the efficacy of Biolapha’s proprietary herbal formulations as well as products, and subsequently, registering them with China’s National Medical Products Administration (“NMPA”) for commercialisation.
The injection of these assets and the entry of BISB as BioMedic’s new major shareholder have been approved by Suzhou Industrial Park Administrative Committee (“SIPAC”), designating BioMedic as Sino-Foreign Joint Venture instead of Chinese Domestic Company.
