Key Alliance Group Bhd (KAG), a Malaysian company specializing in ICT services and IT infrastructure solutions has announced its plan to invest MYR 14 million (USD 3.4 million) to acquire a 30% stake in Tree Med Sdn Bhd, a local medical devices and pharmaceutical supplier.
KAG Managing Director Roy Ho said the acquisition would help to position KAG as a more diversified player in the medical supplier market for in-vitro diagnostics with a prospect of participating in future vaccine sales and core laboratory products.
Tree Med currently supplies Polymerase Chain Reaction (PCR) test machines, consumables and reagents to the Ministry of Health (MoH), the Social Security Organization, National Public Health Laboratory, and 500 clinics, private hospitals, and private laboratories nationwide. It also holds the relevant licenses from the Medical Device Authority, the National Pharmaceutical Regulatory Agency and the Ministry of Health (MoH).
KAG will distribute its CareGene RT PCR kit via Tree Med’s networks and also explore the supply and distribution of COVID-19 vaccines upon completion of the acquisition. KAG is well-positioned to explore this option as Tree Med has an existing pharmaceutical license which allows it to import and distribute the vaccines. KAG may also consider local manufacturing of certain products and services in the medical industry to lower the cost of COVID-19 testing.
(Sources: The Star, MIDA)