PETALING JAYA: Solution Group Bhd
expects the product development of several vaccines in the pipeline as well as its diversification into a new segment to support its earnings in the near term.
For the fourth quarter ended Dec 31, 2022 (4Q22), the engineering and biopharmaceutical company’s revenue plunged by 94% year-on-year on the back of lower sales in the biopharma division.
In 4Q22, Solution Group recorded a net loss of RM31.85mil, or a loss per share of 7.63 sen, compared to a profit of RM30.13mil in 4Q21.
This was primarily due to the RM30.19mil impairment of Covid-19 vaccine slow moving stocks.The group also attributed high operating expenses to its performance.
In a statement yesterday, the group said that there is low demand for its Covid-19 vaccines, which have a remaining shelf life of 10 months.
Nevertheless, the group noted it has completed the first clinical trial for its new product, Convedicia Air (an inhaled vaccine for Covid-19) through its wholly owned subsidiary, Solution Biologics Sdn Bhd (Solbio).
This is a collaborative effort with CanSino Biologics Inc.
At present, the group is looking to apply for product registration for Convedicia Air with the National Pharmaceutical Regulatory Agency by the end of the first half of 2023.
CanSino has about 13 types of vaccines in their product development pipelines. Solbio collaborates closely with CanSino in commercialising these products in Malaysia and throughout Asean.
Moreover, the group is diversifying into plant construction works through its subsidiary, Solution A&C Technology Sdn Bhd. Solution Group noted that the new venture is performing well.
