Key Alliance plans to acquire 30 pct of Tree Med for RM14 mln

Key Alliance plans to acquire 30 pct of Tree Med for RM14 mln

21 Dec 2020

Key Alliance Group Bhd plans to acquire a 30 per cent stake in Tree Med Sdn Bhd, a local medical devices supplier, for RM14 million.  

In a statement today, Key Alliance managing director Roy Ho said the upon completion, the acquisition would position the group as a complete player in the medical supplier market for in-vitro diagnostics, as well as open doors for it to participate in future vaccine sales and core lab products.

“The scope would not be limited to just COVID-19 vaccines but include others such as standard annual influenza vaccinations,” he added. 

Tree Med has all the relevant licences including Medical Device Authority licences, National Pharmaceutical Regulatory Agency and the Ministry of Health (MoH).

The company is also registered with Malaysian Investment Development Authority and the Ministry of International Trade and Industry, and is currently supplying Polymerase Chain Reaction (PCR) test machines, consumables and reagents to the MoH.

In addition, Tree Med also currently supplies to the MoH both antigen and PCR test kits, as well as to bodies like the Social Security Organisation, National Public Health Laboratory, and 500 other clinics, private hospitals, and private laboratories throughout Malaysia.

Tree Med also provides products and services concerning blood plasma, dengue test kits and HIV tests to the same clients across Malaysia.

With this deal, Key Alliance will automatically be able to supply its CareGene RT PCR kit via Tree Med’s networks to be made available to the MoH and other government agencies, as well as other private sector clinics and medical laboratories.

The group will also be well positioned to explore the supply and distribution of COVID-19 vaccines, as Tree Med has an existing pharmaceutical licence which allows it to import and distribute the vaccines.

Key Alliance said it is already in discussions with various manufacturers and is in the position to be the local distributor to clinics, private and public hospitals and government agencies.

The group is also in discussions with Tree Med to look at local manufacturing of certain products and services in the medical industry to lower the cost of COVID-19 testing, as well as haematology products and other related consumables in the in-vitro diagnostic space.

Source: Bernama