Yong Tai Berhad announced heads of agreement between YTB and shenzen kangtai biological products co. ltd. in relation to the development and exclusive commercialisation of covid-19 inactivated vaccine in malaysia (proposed collaboration). SZKT is now developing an Inactivated Virus Vaccine (Vero Cells) against Covid-19 and its Phase I and II clinical studies and trials are in near completion.

Phase I and II clinical trial data is expected to be available by end of 2020 or first quarter of 2021. Phase III Study Protocol to be submitted to the Ethics Committee of Ministry of Health (MOH) for approval. Once approved, National Pharmaceutical Regulatory Agency (NPRA) will issue the import permit to bring in the vaccines for Phase III clinical trial.

It is now working with SZKT on the Phase III Study Protocol. Emergency usage is only upon the request by MOH to bring in Covid-19 vaccines and subject to marketing authorisation. Importation approval and marketing authorisation are required from NPRA upon commercialisation of the Vaccine in Malaysia.

It will obtain the relevant approvals upon completion of the Phase III clinical trial in Malaysia. Minimum of 20 million doses per annum. Both parties may negotiate and mutually agree on the supply quantity in year 4 and 5, depending on the prevailing conditions of the pandemic.

Pursuant to this HOA, investment by the Group in the Phase III clinical trial to be carried out in Malaysia is estimated to be around RM15 million. This investment will be funded by internal generated fund and equity.