CATALIST-LISTED medical equipment supplier Medtecs International Corp will distribute a Taiwanese biologics firm's Covid-19 rapid tests in the Philippines, under a letter of intent signed and disclosed by the board on Thursday.

Under the planned pact, Medtecs will promote the test kit from Enimmune Corp, a vaccine development and marketing joint venture by Taiwan-listed vaccine manufacturer Adimmune Corp and other investors.

The terms of the partnership are subject to definitive agreements that will be inked between Medtecs and Enimmune Corp, the Medtecs board said. It added that the company will make more announcements when there are material developments on the strategic tie-up.

Medtecs noted in its bourse filing that the company and Enimmune Corp "seek to leverage each other's strengths" in exploring test-kit distribution opportunities in the Philippines, once the relevant approvals are obtained.

The agreement is not expected to have any material impact on Medtecs' consolidated earnings or net tangible assets per share for the year to Dec 31, 2021, it added.

Fuelled by the Covid-19 pandemic, Medtecs' share price surged by more than 2,600 per cent in 2020, rising from 3.7 Singapore cents to S$1.

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The counter last closed on Thursday at S$1.10, down by S$0.02 or 1.79 per cent, before the announcement.