KUALA LUMPUR: Ta Win Holdings Bhd’s subsidiary is venturing into the pharmaceutical industry through its RM20.85mil investment in Royce Pharma Manufacturing Sdn Bhd.
It said in a statement on Monday its healthcare arm Ta Win Copper Biohealth Sdn Bhd (TWCB) agreed to acquire a 32.5% stake in Royce Pharma, marking the first investment in the pharmaceutical industry.
Under the agreement, the latter has given a profit guarantee of RM10mil for first year and another RM10mil in the second year.
Ta Win group managing director Datuk Seri Ngu Tieng Ung said TWCB’s investment in Royce Pharma, one of the leading pharmaceutical companies in Malaysia, was a natural progression as part of its long-term strategic plans.
“This exercise will enable the Ta Win Group to harness Royce Pharma’s existing pharmaceutical platform, capabilities in drug development, drug production capacities and its wealth of experience, to explore the development of pharmaceutical products that are relevant to the current global environment, particularly given the on-going Covid19 pandemic, ” he said.
Royce Pharma Manufacturing group deputy president Datuk Chandrasekar Suppiah said both his company and TWCB share a strong vision for the future of the pharmaceutical industry in Malaysia and beyond.
“We firmly believe that with Ta Win’s support, we will be able to successfully adopt new technology in terms of research, supply chain, manufacturing as well as distribution, thereby allowing us to expand our reach in the local and global markets even further.”
Ta Win’s core business is manufacturing of copper products. Royce Pharma manufactures and supplies pharmaceutical products and also non-pharmaceutical products such as medical disposables, equipment and devices under the Government’s Approved Products Purchase List.
Royce Pharma has 65 drugs registered with the Drug Control Authority of the Ministry of Health Malaysia and is contracted to manufacture and supply 25 drugs to government healthcare facilities.
The signing ceremony was held in the presence of Deputy Human Resources Minister Awang Hashim. Also present were Royce Pharma Manufacturing president Zainal Ariff Tan Sri Mahmood and Ta Win executive director Tan Poo Chuan.