SINGAPORE – Q&M Dental Group and its Catalist-listed associated company, Aoxin Q&M have suspended Acumen Diagnostics’ laboratory business with “no immediate plans” to reapply for its laboratory licence after it expired on Sep 15 this year.

The business segments comprise the lab business as well as offering Covid-19 vaccinations to the Singapore public under its tender contract with the Ministry of Health (MOH) at its joint testing vaccination centre (JTVC) in Sengkang.

Acumen is a 51 per cent subsidiary of Q&M Dental, with the remaining 49 per cent held by Aoxin Q&M. According to Q&M, the lab businesses has been in loss-making position for FY2023, and the first half ended Jun 30, 2024.

The group added that while the licence is necessary for the operations of Acumen’s lab business, its business volume has been “small” since the shift away from polymerase chain reaction testing in Singapore for Covid-19 in late 2022.

“Notwithstanding this, the Acumen board will continue to actively monitor and tender for new MOH contracts as and when suitable tenders become available, given that its off-site medical licence was successfully renewed recently and will continue to be in force till September 2026,” says Q&M in its Oct 28 release.

“The Acumen board may also explore the possibility of applying for a new laboratory licence from MOH for the resumption of the clinical testing services in the future.”

Q&M also cited potential cost savings from its suspension of the lab business, which it said could be directed to support and develop new businesses related to medical diagnostics, or other future businesses of Acumen.

Income from the Sengkang JTVC had managed to cover the losses incurred by the lab business over this year period, said the group.

However, Q&M has further received the directive from MOH to close its Sengkang JTVC from Dec 1, in line with the ministry’s Oct 25 announcement that it was closing all remaining JTVCs.

This would leave Acumen without any contributions from its sole revenue and income stream, noted the group. Nonetheless Acumen’s board would continue to actively monitor and tender for new MOH contracts as and when suitable tenders become available.

Acumen’s renewed off-site medical licence will continue to be in force until September 2026, added Q&M. Additionally, the group said Acumen may “explore the possibility of applying for a new laboratory licence from MOH for the resumption of the clinical testing services in the future”.  

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