INSBio clinches deals with two companies

INSBio announces two agreements for development and purchase of new products

KUALA LUMPUR: ACE market biotech counter, INS BIOSCIENCE BHD [] (INSBio) has entered into a memorandum of understanding (MOU) with China's Southern Medical University (SMU) to carry out research and development and marketing in herbal products.

Both parties have agreed to include each other as their strategic partners as and when carrying out promotional activities.

In an announcement to the stock exchange yesterday, INSBio said the MOU that was signed on Dec 12 would enable SMU to conduct clinical trials and testing of herbal products developed by INSBio. SMU also would help facilitate the company in obtaining certification of products as well as the health supplements certification and registration with the relevant authorities in China.

In addition, SMU will provide the necessary training to INSBio personnel, while INSBio would assist SMU to promote its name and create public awareness of their products in the international market via its established worldwide distribution channels.

The MOU is not expected to have any material effect on the earnings per share, net assets per share and gearing of the company for the financial year ending March 31, 2010 (FY10).

In a separate announcement, INSBio also said that its unit Hopematic Sdn Bhd has entered into a Deed of Assignment (DOA) with Mega-Bio Marketing Sdn Bhd (Mega-Bio) to purchase the intellectual property rights to a treament and prevention for ulcer, inflammation, wound, hypertension and hyperalgesia known as Melesta, for RM500,000 cash.

Melesta was developed by University Malaya in Kuala Lumpur with the intelectual property rights sold to Mega-Bio.

The DOA is not expected to have any material effect on the earnings per share, net assets per share and gearing of the company for FY10.

For the 18 months ended March 31, 2009, INSBio posted a net loss of RM10.3 million compared to a net profit of RM1.5 million in the financial year ended Dec 31, 2007.

For its second quarter ended Sept 30, the company posted a jump in net profit to RM551,000 versus RM96,000 in the same period a year ago. Earnings per share rose to 0.19 sen from 0.03 sen previously and no dividends were declared for the quarter.

For the six-months to Sept 30, INSBio's net profit fell 29.5% to RM677,000 from RM1.06 million. Earnings per share fell 0.24 sen compared to 0.37 sen previously and no dividends were declared for the six-month period.

INSBio share price stood unchanged for the day at 19 sen as of 2.30pm. The share has risen over the past two weeks from 15.5 sen on Dec 2, 2009.