KUALA LUMPUR: PCCS Group Bhd's (PGB) wholly-owned subsidiary, La Prima Medicare Pte Ltd (LPM) inked an exclusive distribution agreement with China-based Shenqi Medical Technology Co Ltd's (SMT) medical products within the Asia-Pacific region.
In this agreement, LPM is the exclusive distributor for SMT's medical products, namely the drug coated balloon within the Asia Pacific, excluding China and Japan.
The term of the agreement shall commence on May 22, 2021 until May 21, 2023.
Upon expiration of the first term, LPM shall have the right to extend the agreement for a period of two years.
PCCS managing director David Chan Wee Kiang said this agreement marks the first step of PCCS in the medical and healthcare sector towards a long-term strategic cooperation with STM.
"The agreement we signed today is a result of many years of groundwork, research and trials.
"We aren't just another company jumping into the medical bandwagon. We are serious about growing the medical business for PCCS," said Chan in a statement today.
LPM was incorporated in Singapore on June 26, 2020, and is principally engaged in the wholesale of medical, professional, scientific and precision equipment.
Founded in 2014, STM is primarily engaged in the development of minimally invasive surgery products and devices, enabling safer and more reliable cardiovascular surgeries.
Its products are primarily designed for cardiovascular interventional and peripheral vascular interventional procedures.
STM's current star product in China is its drug-coated coronary balloon catheter which has obtained the National Medical Products Administration (NMPA) registration certificate in December 2019.
"We are already in the process of getting STM's products registered in some of the South East Asian countries. We will make the relevant announcements when necessary," said Chan.
This agreement will not have any material effect on the earnings of PCCS for the financial year ending March 31, 2022.
STM has completed several rounds of investments from reputable investors since its inception
These include Hillhouse Capital Group, LYFE Capital, 3H Health Investment and Hardy Farm Ventures among others.