Solution Group to supply 3.5 million doses of Covid-19 vaccine to Health Ministry

KUALA LUMPUR: Solution Group Bhd said wholly-owned subsidiary Solution Biologics Sdn Bhd (SolBio) has signed a term sheet agreement with the Ministry of Health (MoH) for the supply of Covid-19 vaccine.

"The term sheet agreement, signed on Jan 29, is to enable SolBio to enter into a definitive supply agreement to supply 3.5 million doses of the Recombinant Ad5-nCoV vaccine," the company said in a filing today.

The vaccine, Solution Group said, was jointly developed by CanSino Biologics Inc and Beijing Institute of Biotechnology, Academy of Military Medical Sciences.

Under the agreement, MoH will purchase 3.5 million vials from SolBio subject to several conditions including the company having obtain the product registration and market authorisation of the vaccine in Malaysia from Drug Control Authority (DCA) by April 2021.

"Barring any unforeseen circumstances, and subject to the execution of the definitive Supply Agreement, and subject to the Vaccine being approved by the DCA, the Term Sheet Agreement is expected to contribute positively to the future earnings and EPS of SGB for the financial year ending Dec 31, 2021," it said.

It was previously reported that Solution Group was building a vaccine fill & finish facility with was targeted for completion in the second quarter of 2021.