Meihua International Medical reached a strategic cooperation with Genesis Biotech to jointly produce and sell COVID-19 antigen test kits and IVDS

PR Newswire ·  01/11/2023 21:45

YangzhouJanuary 11, 2023/ PR Newswire /-- Meihua International Medical Technology Co., Ltd. ("MHUA" or "Company") (NASDAQ: MHUA) is a reputable manufacturer and supplier of Class I, II and III disposable medical devices with operating subsidiaries in China. Today announced that Jiangsu Huadong Medical Devices Co., Ltd. ("Jiangsu Huadong"), a subsidiary of the Company, has entered into a strategic cooperation agreement ("Cooperation Agreement") with key Egg Biotechnology Co., Ltd. ("SHA:603387") to jointly produce and sell Covid-19 antigen test kits and other in vitro diagnostic (IVD) products.

According to the cooperation agreement, Jiangsu Huadong will serve as the exclusive production and R & D center of egg organisms in northern Jiangsu Province, dedicated to the production of Covid-19 antigen kits and in-depth cooperation in other high-end in vitro diagnosis (IVD) medical device products in the future. The company has recently completed the construction of a new good production practice (GMP) workshop, with a use area of more than 8000 square meters and a commercial storage area of 15000 square meters. The production base has been equipped with 52 new automatic Covid-19 antigen detection kit production lines. Jiangsu Huadong Company will hire more than 400 workers and introduce 35 senior technicians to ensure the full mass production of the products. The production line has obtained the third category medical device production certification issued by the Food and Drug Administration of Jiangsu Province.And will be ready to start production after January 16, 2023.

Key Egg Biology, China's leading manufacturer of POCT kits and one of the major suppliers of Covid-19 antigen testing kits, has recently obtained approval for the production and sale of its products in the China Drug Administration, providing an easy-to-use and cost-effective rapid diagnostic test for Chinese residents to curb the spread of Covid-19.

After China announced the relaxation of pandemic control and prevention policies in early December, the number of Covid-19 cases increased exponentially, leading to a shortage of antigen testing kits nationwide. According to media reports, sales of antigen kits soared by more than 300% in the first week of December 2022. Governments at all levels have also guided or even requisitioned antigen manufacturers in order to go all out to ensure the supply of Covid-19 antigen testing reagents to meet the testing needs of residents. Coupled with the fact that the types of viruses are still constantly changing, it is expected that there will be a large amount of social demand for virus detection and prevention products on the market in the next year or so, and this product has joined the government's livelihood procurement protection plan, so future product sales will be maintained at a high level.

Mr. Liu Yongjun, Chairman of the company, commented: "Rapid and highly sensitive Covid-19 testing will continue to be an important demand in the field of global health in the next few years, and we are very pleased to reach an important cooperation with Keystone to ensure that Meihua International has an adequate product line to cope with the spread of pandemics and to assume our social responsibility to help you cope with the long-term coexistence of Covid-19 with human beings."

Mr. Wang Xin, CEO of the company, said, "We expect that the newly debugged production line will soon acquire the relevant qualifications for the production of type III medical devices, and once it starts production, we estimate that the production capacity will reach 3 million kits per day. Based on current market prices, we expect the new facility to produce goods worth up to 150 million yuan ($22 million) per month (such as calculated according to the peak production capacity).。"

"in addition to adding COVID-19 antigen products, the company's plan will also continue to expand its cooperation with Egg Biology in other POCT in vitro testing devices. This is also very much in line with MHUA's 3-year strategic plan to upgrade its main products from disposable medical devices to high-end devices and genetic IVD products to achieve sustainable and high-quality development."

About key egg biotechnology co., Ltd.

Key Egg Biotechnology Co., Ltd. is a Chinese manufacturer of medical rapid testing products. It was founded in March 2002 and listed on the Shanghai Stock Exchange in 2017. We provide professional Covid-19 detection solutions and produce advanced clinical diagnostic equipment and quantitative immune analyzers such as rapid detection kits for heart markers, blood cell reagents, quantitative immune analyzers, automatic urine microscopy analyzers, etc. The company has more than 400 R & D staff, is BSI ISO 13485 and CE certified, operates through 35 subsidiaries and sells its products to more than 110 countries. For more information, please visit.

About Meihua International Medical Technology Co., Ltd.

Meihua International Medical Technology Co., Ltd. (Meihua International Medical Technologies Co., Ltd.) is a well-known manufacturer and supplier of Class I, II and III disposable medical devices in China, with operating subsidiaries in China. The company produces and sells Class I disposable medical supplies, such as eye drops bottles, medicine bottles, artificial anal bags, and identify wristbands, gynecological examination kits, surgical examination kits, operation kits, medical brushes, medical dressings, masks, disposable infusion pumps, electronic pumps, puncture bags and other II and III disposable medical devices, and act as agents for the distribution of disposable medical devices purchased from other manufacturers. The company has passed the international "CE" certification and ISO 13485 system certification, and has registered more than 20 products in FDA (registration number: 3006554788) in the United States. The company has served hospitals, pharmacies, medical institutions and medical equipment companies for more than 30 years, with more than 800 products sold in China and more than 120 products exported to more than 30 countries throughout Europe, North America, South America, Asia, Africa and Oceania. For more information, please visit.

Forward-looking statement

The statements in this press release regarding the Company's future expectations, plans and prospects constitute forward-looking statements as defined by Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about plans, goals, objectives, strategies, future events, expected results, assumptions and any other factual statements that have not occurred. Any expression that refers to "may", "will", "want", "should", "believe", "expect", "expect", "estimate", "estimate" or similar non-factual words, in particular, the listing of the company on the Nasdaq global market and the completion of the offering shall be regarded as forward-looking statements. Due to various factors, the actual results may differ materially from the historical results or the contents expressed in these forward-looking statements. These factors include, but are not limited to, the company's strategic objectives, the company's future plans, market demand and user acceptance of the company's products or services, technological updates, economic trends, the company's reputation and brand, the impact of industry competition and bidding, relevant policies and regulations, the ups and downs of China's macroeconomic conditions, the international market conditions served by the company, and the related risks and assumptions disclosed in the prospectus. In view of the above and other related reasons, we advise investors not to blindly rely on these forward-looking statements, and we urge investors to visit the SEC website to consult the company's relevant documents for other factors that may affect the company's future operating results. The Company is under no obligation to make public amendments to changes in these forward-looking statements due to specific events or reasons after the filing of these documents.

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