KUALA LUMPUR (April 20): Nexgram Holdings Bhd has teamed up with Indonesia’s PT Mitra Abadi Propertindo Utama (MAPU) to sell medical test kits in Indonesia and other Southeast Asian markets.

In a filing with Bursa Malaysia today, Nexgram said its wholly-owned subsidiary Nexgram Industries Sdn Bhd (NISB) has entered into a strategic sourcing agreement with MAPU on April 16. 

Under the agreement, NISB will sell MAPU products as required by the latter, at a purchase price agreed upon subject to terms and conditions of the agreement.

MAPU has estimated that it will require 500,000 sets of detection and diagnostic kits and 500,000 sets of rapid test kits this year. 

NISB will try its best to obtain the necessary approvals from the Medical Device Authority (MDA) under Malaysia’s Ministry of Health to distribute the products locally, while MAPU will try to secure the same approvals and licences to distribute the products in Indonesia.

“In the event any of the applications to the MDA in Malaysia or equivalent authority in Indonesia is rejected or with conditions not reasonable acceptable to the relevant parties or shall not have been given or not obtained, either party may terminate the agreement immediately,” Nexgram said. 

The agreement will be in force for a year from the signing of the agreement and will automatically be renewed for another year.

Nexgram expects this agreement to contribute positively to the group’s earnings during the tenure of the agreement.

Last month, NISB was appointed as the exclusive master distributor of Tri-G Technologies Sdn Bhd’s medical devices and coronavirus test kits for two years.

Meanwhile, MAPU is a pan-Indonesia procurement, warehouse, and facility leasing company of medical devices and supplies.

The company is authorised to promote, market and distribute detection and diagnostic kits and test kits and other medical supplies products by various suppliers from China, South Korea and the US for the markets in Indonesia and Southeast Asia. 

Nexgram’s share price closed up 0.5 sen or 50% at 1.5 sen today, bringing it a market capitalisation of RM31.03 million. Some 1.04 million shares were traded.