KUALA LUMPUR (April 7): Malaysian Genomics Resource Centre Bhd (MGRC) said it has entered into a private label and right of use agreement with Eostre Bhd for the latter's procurement of the former's know-how to research, design, develop and provide genetic screening tests and other products under private label for sale to customers.

In a filing with Bursa Malaysia today, MGRC said the total contract sum amounts to RM7 million based on invoicing during the contractual agreement.

According to MGRC, Eostre is currently operating the business of marketing and direct sales of healthcare products under various brands.

"Eostre is desirous of procuring MGRC's know-how to research, design, develop and provide genetic screening tests and other products under private label for sale to their customers."

"This agreement will come into effect on the date it is signed by both parties and will remain in force for a period of one year (initial term) unless earlier terminated. The agreement shall automatically renew for periods of one year each (renewal term) until terminated," said MGRC.

MGRC said, it does not foresee any exceptional risk other than the normal operational risks associated with the transaction.

"Nevertheless, the company will take the necessary steps to mitigate the risks as and when they occur.

"This agreement will not have any impact on the share capital and substantial shareholders' shareholdings of MGRC in the financial year ending June 30, 2021. It is expected that the agreement will contribute positively to the earnings per share and net assets of the company as and when the benefits of the agreement are realised," it said.

At the time of writing, MGRC had risen two sen or 1.77% to RM1.15, valuing the group at RM137 million.