Sanichi, PNE, AT Systematization sign MoU with US-based firm to produce ventilators

TheEdge Mon, May 18, 2020 07:23pm - 3 years View Original


KUALA LUMPUR (May 18): Three Malaysian listed firms and a US-based company have joined forces to produce medical-grade mechanical air ventilators to take advantage of the worldwide shortage of the product.

Sanichi Technology Bhd, AT Systematization Bhd and PNE PCB Bhd said in separate filings to Bursa Malaysia today that they have inked a memorandum of understanding (MoU) with Arzon Solar LLC (ARZ) to form a joint-venture (JV) company for the purpose.

The three Malaysian companies said they will hold shareholding of 30% each in the JV, while ARZ will have a 10% stake.

They said they will be responsible for the production of the ventilators and obtaining the necessary licences and certificates required.

ARZ, meanwhile, will be responsible for the distribution and marketing of ventilators for both the domestic and international markets.

AT Systematization, in its filing, said the collaboration would also allow the company to leverage on the favourable outlook of the healthcare industry.

The company said that as the Covid-19 crisis accelerates, it views this as an appropriate time to capitalise on the increase in demand for medical ventilators.

The MoU was signed by Sanichi managing director Datuk Seri Pang Chow Huat, AT Systematization managing director Choong Lee Aun and PNE PCB executive director Kua Khai Loon.

ARZ was represented by its chief executive officer Vahan Garboushian.

In a joint press release, Garboushian said the Covid-19 pandemic has led ARZ to work with its Malaysian partners to speed up the customisation of design to meet local compliance of each targeted country.

Currently, ARZ’s successfully prototyped ventilators are ready for production and Garboushian said time constraints do not permit the company to manufacture and market these ventilators alone.

Added Pang: “This is a timely penetration into the niche healthcare industry, considering the global mechanical medical ventilators’ market is valued approximately at US$1.05 billion.”

“Together, we want to ease this worldwide shortage of ventilators to save lives and serve the global community well,” said Pang.

Meanwhile, Choong said that by capitalising on AT Systematization’s expertise and experience, together with its ISO 13485 medical certification, the new JV can manage to keep up with complexity, quality and compliance.

AT Systematization has a track record in the production of medical devices and is a certified contract manufacturer of endoscope and has been producing endoscopy accessory metal parts for medical device manufacturers.

On his part, Kua said he is optimistic about bringing value to the JV with PNE PCB’s expertise, and believes that the ventilators will be a very innovative international product that will help ease demand of the industry globally.

Kua added that PNE PCB has decades of experience in manufacturing printed circuit boards for customers from Japan, the US and Europe.

Taking a glance into the historical financial results of the three Malaysian companies, all of them have been loss-making over the last two years.

Sanichi’s share price surged 55.56% or 2.5 sen to seven sen today, giving the firm a market capitalisation of RM78 million.

Meanwhile, AT Systematization closed 0.5 sen or 11.1% higher at five sen, valuing the group at RM75 million, while PNE PCB settled five sen or 5.88% higher at 90 sen, for a market capitalisation of RM118 million.

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