MGRC inks agreement to distribute products in Bangladesh

KUALA LUMPUR (May 15): Malaysian Genomics Resource Centre Bhd (MGRC) has inked a strategic cooperation agreement (SCA) with Bangladeshi firm Toticell Ltd for the distribution of its products in Bangladesh.

Toticell is based in Dhaka, Bangladesh, and the firm specialises in regenerative healthcare focusing on treatments for musculoskeletal conditions such as arthritis, sports-related injuries and tendinopathies.

“Under the SCA, both parties agree to cooperate in the distribution of MGRC’s cosmeceutical products, genetic screening tests, CARs [Chimeric antigen receptors], T-cell therapy services, and other areas of mutual commercial interests,” said MGRC in a statement on Monday (May 15).

MGRC chief executive officer Sasha Nordin said Bangladesh represents a market with vast opportunities given its population of approximately 165 million people. Hence, the group is delighted to cooperate with Toticell to bring its products and services to the country.

Meanwhile, MGRC executive director Azri Azerai said the collaboration with Toticell falls in line with its strategic expansion plan, which includes diversifying geographically.

For the second quarter ended Dec 31, 2022 (2QFY2023), MGRC slipped into the red with a net loss of RM1.23 million against a net profit of RM1.01 million a year ago, as revenue fell 78.46% to RM1.64 million from RM7.63 million during the same period — as the group moved its focus from vaccines to biopharmaceuticals.

“The financial performance for the quarter under review was mainly affected by the need to spend in support of the pivot to biopharmaceuticals, which the group is well positioned to take advantage of given our track record as a leading provider of genetic screening and genome analysis services,” said Azri.

The group also blamed the weaker financial performance on the business expansion and production of fast-moving consumer goods, the move which required additional human resources capital, research and development expenditure and marketing.

The weaker quarterly performance dragged down its results for the cumulative six months of FY2023, as it incurred a net loss of RM353,000 during the period versus a net profit of RM1.25 million a year earlier. Six-month revenue also dropped 67.81% to RM5.46 million, from RM16.94 million the year before.

Shares in MGRC closed down 1.5 sen or 2.46% at 59.5 sen, giving the group a market capitalisation of RM77 million.