KEY Alliance Bhd (KGroup) has taken a giant leap to become a healthcare provider by acquiring a 30% stake in Tree Med Sdn Bhd, a leading local medical devices supplier, for RM14 mil.
Tree Med Sdn Bhd has all the relevant licenses from the Medical Device Authority (MDA), National Pharmaceutical Regulatory Agency (APRA), Ministry of Health (MOH) and is registered with Malaysian Investment Development Authority (MIDA) and Ministry of International Trade & Industry [MITI).
In addition, Tree Med is also currently supplying both antigen and PCR test kits to the MOH and bodies like the Social Security Organisation (Socso), Makmal Kesihatan Awam and 500 other clinics, private hospitals and private laboratories throughout Malaysia.
“This acquisition when completed will position Key Alliance as a complete player in the medical supplier market for in-vitro diagnostics as well as open doors to participate in future vaccine sales and core lab products,” KGroup managing director Roy Ho Yew Kee pointed out.
“The scope would not be limited to just COVID-19 vaccines, but include others such as standard annual influenza vaccinations”
Elsewhere, Tree Med also provides products and services concerning blood plasma, dengue test kits and HIV tests to the same clients across Malaysia.
Through this deal, KGroup said it will also be automatically 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 license which allows it to import and distribute the vaccines.
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.
Moreover, KGroup is also in negotiation 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 hematology products and other related consumables in the in-vitro diagnostic space. – Dec 21, 2020
