METRONIC Global Bhd is expecting US$1 bil in revenue – which is more than five times its current market capitalisation of RM169 mil – for its worldwide monopoly of the COVID-19 Immune System Test Kit supply chain.
The company said it has received pre-orders for a total of 50 million test kits from companies within the Southeast Asia Region, prompting its order book to swell by US$350 mil.
On Feb 2, Metronic announced that its wholly-owned subsidiary, Metronic Medicare Sdn Bhd has inked a joint research and development agreement with Joysbio (Tianjin) Biotechnology Co Ltd for the test kit collaboration.
On Feb 9, the company announced that it has received a periodical test report from Joysbio that the results for the SARS-Cov-2 Neutralising Antibody Immune System Test Kit was 100% accurate.
The final test on the test kit will be conducted at Italy’s Central Lab next week.
In a nutshell, the test kit analyses a patient’s level of immunity against future COVID-19 infection after the patient is vaccinated.
If the patient’s immunity against COVID-19 is below acceptable level, the patient may be recommended to take additional booster dose of vaccine. The tester can also detect COVID-19 infected person.
“Since our first announcement on Feb 2, we have received inquiries from multiple pharmaceutical groups and some have issued LOI (letter of intent) for our test kit,” Metronic CEO-cum-executive director Hoo Wai Keong pointed out.
“These LOI are from Southeast Asia region companies such as MTPS Innotech which pre-ordered 30 million test kits valued at US$210 mil and Genesprint Group Ltd which pre-ordered 20 million test kits valued at US$140 mil.”
With the overwhelming response from the market, Hoo predicted that the sales volume of the test kit will reach 152 million, representing only 2% of the world population in the next two years.
Hoo said “If the sales target of 152 million test kits is reached, it will be able to create a revenue of up to US$1 bil for Metronic,” projected Hoo.
“The first batch of orders will come from pharmaceutical groups of Thailand, Hong Kong, Indonesia, Singapore and the Philippines.”
With Joysbio’s production capacity at one million test kits per day – making it the largest test kit manufacturer in China – the company, Hoo added, should have no problem to meet Metronic’s demands of all its pre-orders and translate them into revenue of US$1 bil.
At today’s close of trading, Metronic was up 1 sen or 10.53% to 10.5 sen with 110.63 million shares traded, thus valuing the company at RM169 mil. – Feb 23, 2021