INTRODUCTION
The Board of Directors of Solution Group Berhad ("SGB") is pleased to announce that its wholly-owned subsidiary, Solution Biologics Sdn. Bhd. (“SOLBIO”), has on 1 July 2025 entered into an International Exclusive Distribution Agreement (“the Agreement”) with Xiamen Innovax Biotech Co., Ltd. ("INNOVAX"), a biotechnology company based in China.
This collaboration signifies a strategic step forward in expanding SGB’s footprint in the biologics and vaccine distribution sector, complementing its broader healthcare initiatives.
The Board is confident that this collaboration will strengthen SOLBIO’s position in the local vaccine market and support the national agenda in enhancing access to preventive healthcare solutions.
INFORMATION ON INNOVAX
INNOVAX is a leading company in the field of developing, manufacturing and marketing innovative vaccines with its headquarters and manufacture based in Xiamen, China.
INNOVAX has established a unique Escherichia coli-based recombinant vaccine system for vaccine industrialization. Based on this platform, the world’s first Hepatitis E Vaccine, Hecolin® has launched in China in October 2012. In addition, its Cervical Cancer Vaccine-Cecolin® (HPV16&18 bivalent,) have been approved in 2019.
SALIENT TERMS OF THE INTERNATIONAL EXCLUSIVE DISTRIBUTION AGREEMENT AGREEMENT
Under this agreement, SOLBIO has been granted the exclusive rights to register, import, commercialize, and distribute Cecolin™, INNOVAX’s recombinant Human Papillomavirus (HPV) Bivalent (Types 16,18) Vaccine, in Malaysia.
Key Highlights of the Agreement:
- Exclusive distribution rights for Cecolin™ in Malaysia;
- Minimum order quantity commitments for three years after product registration;
- Responsibilities for regulatory registration, import licensing, and pharmacovigilance to be undertaken by SOLBIO;
- Joint efforts in ensuring cold chain logistics compliance, market development, and product education;
- The agreement is effective from 1 July 2025 and shall remain valid for an initial term of three (3) years, with potential for renewal.
Cecolin™, developed using Escherichia coli expression technology, is intended for the prevention of cervical cancer and has been prequalified by the World Health Organization (WHO), signifying its quality, safety, and efficacy.
FINANCIAL EFFECTS OF THE AGREEMENT
i) Share capital and shareholdings of substantial shareholders
The Agreement will not have any effect on the share capital and substantial shareholders’ shareholdings of SGB as no new SGB shares will be issued pursuant to the Agreement.
ii) Net Assets, Net Assets per share and gearing
The Agreement is not expected to have any material effect on the net assets, net assets per share and gearing of SGB for the financial year ending 31 December 2025.
iii)Earnings and Earnings Per Share
Barring any unforeseen circumstances and subject to the fulfillment of all relevant regulatory requirements, the Agreement is not expected to have an immediate material effect on the earnings and earnings per share (EPS) of SGB for the financial year ending 2025. However, it is anticipated to contribute positively to the Group’s financial performance in the future upon successful registration and commercialization of the product.
DIRECTORS AND MAJOR SHAREHOLDERS INTEREST
None of the directors, substantial shareholders of the Company and persons connected to them has any interest, direct and/or indirect, in the Agreement.
APPROVALS REQUIRED
The Agreement is not subject to the approval of shareholders of the Company.
STATEMENT BY DIRECTORS
The Board, having taken into consideration all aspects of the Agreement, is of the opinion that the Agreement is in the best interest of the SGB Group.
Further announcements will be made as and when there are material developments pertaining to this agreement.
DOCUMENTS FOR INSPECTION
A copy of the Agreement is available for inspection at the registered office of SGB at Unit 521, 5th Floor, Lobby 6, Block A, Damansara Intan, No. 1, Jalan SS20/27, 47400 Petaling Jaya Selangor Darul Ehsan during office hours from Mondays to Fridays (except on Public Holidays) for a period of three (3) months from the date of this announcement.
This announcement is dated 1 July 2025.
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