NST Business
KUALA LUMPUR: Bioalpha Holdings Bhd (BHB) through its wholly-owned subsidiary Bioalpha International Sdn Bhd (BISB) inked a collaborative agreement with CME Health Sdn Bhd (CME Health), a wholly-owned subsidiary of CME Group Bhd (CGB) to develop, manufacture and supply health food supplements to market in Southeast Asia.
Under the agreement, BISB shall become CME Health's product development partner and the exclusive sole manufacturer of the immune health food supplement products.
CME Health is also granted the exclusive rights to market, sell, promote and distribute these products in the SEA region.
BHB managing director William Hon said through this partnerships, CME is now in the company's list of growing original design manufacturing (ODM) client base.
"We believe that immune health food products will be well-received by the market in view of the rising health awareness, especially in the current pandemic situation.
"We look forward to working together with CME Health to achieve our common goals and expect to see positive results from this collaboration in the near future," he said in a statement.
CME Health is involved in the purchasing, selling, distributing biological development and pharmaceutical products.
Meanwhile, its parent company, CGB, is an investment holding company with core activities in providing comprehensive solutions in relation to designing, manufacturing and sale of various types of specialized mobility vehicles, firefighting and safety vehicles, property development and investment, as well as retail business.
Looking ahead, Willaim said the company will continue to pursue strategic alliances such as this to enhance competitiveness.
"We remain upbeat on the group's outlook, underpinned by new partnerships, and will continue our efforts to capture the growing health supplement market," he said.
Meanwhile, a spokesperson from CME Health said the tie up with Bioalpha in venturing into the health food business is timely as there is a huge potential to be reaped in the health food industry with the growing demand for health supplements, specifically for the immunity-related products, following the outbreak of the Novel Coronavirus (Covid-19) pandemic.
"Keeping this in mind, we are aware of the importance of having a strong partner with the right capabilities and offerings. This is why we have chosen Bioalpha to collaborate, backed by an experienced management team and a robust track record in the health supplement space.
"At the same time, this endeavour is consistent with our strategy to expand CME Health's income stream. We expect to start marketing and distributing health food products by the end of 2020," he said.