KUALA LUMPUR (Aug 10): Shares in Ho Wah Genting Bhd (HWGB) jumped 15.83% or 19 sen to RM1.39 in morning trade today after the group said last week that its subsidiary had inked a memorandum of understanding (MoU) to undertake phase-four clinical trials for a poliomyelitis vaccine for Covid-19.

At 10.50am, shares in HWGB were 11.67% or 14 sen higher at RM1.34, valuing the group at RM696.99 million. It saw 47.69 million shares traded, exceeding its 200-day average volume of 7.5 million shares.

According to the group’s filing with Bursa Malaysia last Thursday, its unit HWGB Biotech Sdn Bhd had partnered with US-based E-MO Biology Inc (EBI) for HWGB to invest a sum of US$1 million (RM4.2 million) in EBI, entitling it to 40% of profit from the commercialised vaccine.

HWGB said it will have exclusive rights for the production, distribution and sale of the repurposed vaccine based on the polio vaccine for use in preventing Covid-19 infections in Southeast Asian countries.

“EBI on June 15 submitted the Initial Investigational New Drug application to the United States Food and Drug Administration to conduct phase IV clinical trials for a new indication which proposes the use of the existing poliomyelitis virus vaccine for prevention of Covid-19, which is currently pending approval.

HWGB said the memorandum is not expected to have any immediate material effect on its earnings, net assets, gearing and share capital.

“However, the proposed collaboration is expected to contribute positively to earnings of HWGB upon successful commercialisation of the new indication.

“The board, having taken into consideration all aspects of the memorandum, is of the opinion that the memorandum is in the best interests of the company,” said HWGB.