Ho Wah Genting Berhad (“HWGB” or the “Company”) (KLSE:9601) through its wholly-owned subsidiary HWGB Biotech Sdn Bhd (“HWGB Biotech”) today signed a Memorandum of Agreement (“MoA”) with US-based E-MO Biology Inc. (“EBI”) entered into a proposed collaboration whereby EBI shall (subject to the pre-approval or exemption from the FDA for the IND application) undertake phase IV clinical trials for a new indication which proposes the use of existing poliomyelitis virus vaccines for prevention of COVID-19 (“Project”) and the research and development, testing, registration, manufacturing and commercialisation of the 5 provisional patent applications.

HWGB Biotech shall invest in the Project and in EBI (“Proposed Collaboration”) subject to the terms set out in the Definitive Agreement to be entered into, the principal terms and conditions of which are set out in the Memorandum.

EBI had on 15 June 2020 submitted the Initial Investigational New Drug (“IND”) application to the United States Food and Drug Administration (“FDA”) to conduct phase IV clinical trials for a new indication which proposes the use of existing poliomyelitis virus vaccines (“polio vaccines”) for prevention of COVID-19, which is currently pending approval.

Chief Executive Officer of HWGB, Dato’ Lim Ooi Hong (Dato’ Aaron Lim) expressed, “We believe the eventual collaboration between EBI and us will enable a preventative vaccine to be made available to market as soon as possible and as affordable as can be for the public”.

“The proposed collaboration is expected to contribute positively to the earnings of HWGB upon the successful commercialisation of the vaccines,” Dato’ Aaron Lim added.

The proposed collaboration will see HWGB investing US$1 million into EBI entitling the Company to 40% of the total profit from the commercialised vaccine. HWGB will also 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 Asia countries.

In addition, HWGB will have the right to retain all profits from the vaccines, as well as a royalty-free license together with the granting of sublicenses for the use of the trademark and other intellectual property rights in relation to the vaccines in the Southeast Asia countries.

The sole director and shareholder of EBI, Professor Qiyi Xie expressed, “It is such a pleasure to have HWGB Biotech on board for this collaboration. By having HWGB Biotech on board, the Company would be able to penetrate the SEA countries as soon as the vaccines are made available to the market.”