KUALA LUMPUR (June 16): LAC Med Bhd (KL:LACMED) has secured a four-year contract worth up to RM78.9 million to supply reagents and related items for pathology chemistry tests to 10 Ministry of Health hospitals in Kedah.
The contract lifts the medical technology solutions provider’s cumulative order book to RM277.9 million, providing earnings visibility over the next three to four years, LAC Med said in a statement on Tuesday.
Its wholly-owned subsidiary LAC Medical Supplies Sdn Bhd accepted the letter of award from a healthcare concessionaire company on Monday, according to a filing with Bursa Malaysia.
The contract runs from June 15, 2026 to June 14, 2030. However, the delivery of reagents and related items will depend on the hospitals’ actual usage requirements.
The products will be supplied under an “instrument placement” arrangement, where medical equipment is placed at the hospitals alongside the recurring supply of reagents and consumables.
LAC Med said the products are from a recently added international principal represented by the group in Malaysia.
The group has secured about RM105.7 million worth of contracts involving products from the same brand so far this year.
Barring unforeseen circumstances, the contract is expected to contribute positively to LAC Med’s earnings and net assets throughout its tenure, the company said.
Group chief executive officer Liew Yoon Poh said the contract would strengthen the group’s recurring income stream and help it establish a track record in the medical consumables segment.
“This sizable win not only validates our success in helping our new principals penetrate the Malaysian healthcare market, but also strengthens our recurring income stream,” he said.
LAC Med provides medical devices and integrated healthcare solutions in Malaysia and Indonesia. The group represents 11 international brands and offers more than 1,250 medical devices, consumables and information technology solutions.
Based in Petaling Jaya, Selangor, the group has installed more than 2,600 units of medical equipment nationwide and serves over 300 clients across Malaysia’s public and private healthcare sectors.