ASX Health Stocks: BPH wants to ramp up bird’s nest sales to China
Health & Biotech
Health & Biotech
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Health & wellness stock BPH Global (ASX:BP8) rose 20% after flagging a potential ramp up in China.
The company said its executive directors Matthew Leonard and Frank Cannavo will be in China for a series of commercial meetings and prospective cornerstone investor meetings over a 3-4 week period commencing this week.
BP8 says the visit represents a major business development and fundraising opportunity as the company works toward reactivating and expanding its bird’s nest business in China.
China is the world’s main consumer of edible bird’s nests, which are specifically made by swiflets, using strands of solidified saliva. They’re known for their nutiritous qualities and have a high collagen content.
Earlier in the year, BP8 began conducting a pilot program to trial its channels for the sale of bird’s nest products via China Tobacco’s outlets in Guangzhou, and via social media influencers on Douyin (a version of TikTok).
Separately, BP8 says its new board has implemented a variety of cost-saving measures, including a reduction in director fees, contractors and excess headcount.
The savings realised through these efforts will be reinvested in key operational areas of the company’s business.
BPH Global was formerly called Stemcell United (ASX:SCU), and the BP8 shares began trading in March this year.
“The ACCC is concerned that the proposed acquisition would be likely to substantially lessen competition in Australian pathology services markets,” ACCC commissioner Stephen Ridgeway said.
ACL and Healius both supply pathology services to the community, private and public hospitals and veterinary clinics. They compete closely with one another and offer services under well-known brands familiar to many in the community.
“The proposed acquisition would combine two of the top three providers of pathology services in Australia, significantly increasing concentration in already concentrated markets,” Ridgeway said.
The combined ACL and Healius would be the largest provider of community pathology services in every state and territory in which they both operate, owning more than 50% of approved collection centres across Australia.
The ACCC is now inviting submissions in response to this statement by 10 August.
In March this year, Healius received an off-market takeover bid from ACL, a company less than half its size.
The offer was all-scrip offer, giving Healius shareholders the chance to receive 0.74 ACL shares for every 1 Healius share.