Nexgram acquires Arita medical Acrylic firm, enters vaccine bottling business [13 August 2020] Press Release (Amendment)

Amendment.

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Arita Plastics Industries

13 August 2020, Kuala Lumpur – Medical device provider Nexgram Holdings Bhd (Nexgram Group) is acquiring medical plastic firm Arita Plastics Industries (M) Sdn Bhd (Arita) in a move to enter manufacturing and supply of biomedical materials, life-saving medical devices, medical compounds, and personal protective equipment such as protection face shield, hospital Acrylic (PMMA) Medical Intubation boxes and gloves, and Acrylic sheets as alternative material to borosilicate glass vials for COVID-19 Vaccines.

The company also manufactures high quality optical clear extrusion plastic sheets in a dust-free environment to produce high technology products such as LCD panel, light guide panel, and thermoforming & vacuum forming products for Malaysia, South East Asia, Australia, Japan, China/ Hong Kong, India, Europe and South Africa.

The firm said its unit Nmed Industries Sdn Bhd had inked a share sale agreement with the vendor Dato’ Lim Theng Hooi, Datin Khoo Phaik Ee, and Mr Teoh Ean Kee to acquire combined 60% equity interest stake in Arita for RM30 million.

Nexgram Group executive director Tuan Haji Mazru said as on the rationale for the acquisition is in line with the upsurge in demand of medical personal protection equipment including face shield for hospital and schools, hospital intubation and gloves, as well as upcoming covid-19 vaccine bottling across the globe due to the unprecedented global pandemic event. Covid-19 has created higher safety and hygiene awareness across all industries.

“As a result, the medical plastic industry is expected to undergo a structural step-up in demand with rising awareness on the importance of personal protection, hospital demand, and coming vaccination supplies markets,” it added.

“The acquisition will enable Nexgram Group to leverage on Arita’s existing products and services to further expand its clientele and business, providing a more robust bottom to Nexgram Biomedic, the medical division of the group,” he said.

“Vaccine bottles using Arita Covid-19 vaccine plastic sheet came with Tracvirus vaccine record tracking App, a global unified electronic certification (E-Cert) for International travel, social, work and school Covid-19 test and vaccine record anti-fraud and anti-fake verification solution,” the firm added.

On 19 May 2020, Barron’s estimated global Covid-19 vaccine market could reach US$30 billion. According to Prophecy Market Insights, the global Covid-19 vaccines market accounted for US$ 2.6 billion in 2020 and is estimated to be US$ 1.5 billion by 2025 and is anticipated to register a CAGR of -10.4%. The global drugs market related to Covid-19 accounted for US$ 156.0 billion in 2020 and is estimated to be US$ 2.3 billion by 2025 and is anticipated to register a CAGR of -57.0%

Nexgram said the acquisition is expected to be completed in October 2020.

 

ABOUT NEXGRAM HOLDINGS BHD

NEXGRAM HOLDINGS BERHAD is listed on the ACE Market of Bursa Malaysia Exchange and its headquarter is in Malaysia. The group is a diversified investment company having businesses in IT, security and surveillance, logistics, medical, property and other industries.

ABOUT NEXGRAM BIOMEDIC SDN BHD

NEXGRAM BIOMEDIC GROUP is a global bio pharmaceutical company dedicate to develop new medical devices, drugs, and technologies in support of innovations in the medical field. The group subsidiaries include Tri-G Technologies distribute medical devices and Covid-19 test and vaccine record tracking App using electronic certificates (E-Certs) for real-time record checking in work, school and travel; Nmed Industries trade, distribute and invest in medical device and personal protection equipment manufacturing; and Glove Alliance Sdn Bhd in medical and disposable nitrile gloves contract manufacturing and distribution.

ABOUT ARITA PLASTICS INDUSTRIES (M) SDN BHD

ARITA GROUP manufacture and supply biomedical materials, life-saving medical devices, medical compounds, and personal protective equipment such as protection face shield, hospital Acrylic (PMMA) Medical Intubation boxes and gloves, and Acrylic sheets as alternative material to borosilicate glass vials for COVID-19 Vaccines. The company also manufactures high quality optical clear extrusion plastic sheets in a dust-free environment to produce high technology products such as LCD panel, light guide panel, and thermoforming & vacuum forming products for Malaysia, South East Asia, Australia, Japan, China/ Hong Kong, India, Europe and South Africa.