Bug killers: Zoono has become a 13-bagger in 4 months as China seeks a coronavirus solution
Health & Biotech
Health & Biotech
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Since mid-October Zoono (ASX:ZNO) has climbed from 8.2c to $1.20 this morning — a 1,382 per cent spike.
And it is still climbing after more good news this morning.
The antimicrobial solution maker unveiled its latest distribution agreement into China, focused on the childcare and hotel sectors.
The deal with Beijing Youmeng Technology and Development will last at least five years and includes minimum purchase volumes of $NZ1.5m ($1.4m) in the first 18 months alone.
It has already received an initial payment of about half that amount. The company also announced unaudited revenues for this quarter to date were $NZ2.4m.
This morning’s announcement sent it 20 per cent higher than Friday.
Zoonoo CEO Paul Hyslop told Stockhead he believed his company was standing out commercially and on the ASX because of consumer desperation for a solution as well as because his company’s products were different.
“We haven’t had time to consider the share price because we’re that busy,” he said.
“Last year we got a lot of publicity regarding the African swine fever and pig farming with China in particular and we’ve also been doing work in the poultry business.
“Then all of a sudden we got hit with the coronavirus and we’ve had orders pouring in the door. It’s taken off and the market is responding.”
He believes there is one critical difference with his company’s products.
“We’re about stopping cross-contamination. Other [solutions] may attack the virus but they won’t protect the surfaces or the skin afterwards — they kill only but we kill and protect,” he said.
Another company with a potential solution for the coronavirus that spiked today off strong news was Holista CollTech (ASX:HCT) . Two weeks ago it went on a run after it sold out of the NatShield sanitisers it distributes. Today it announced it would ship another 90,000, bringing the total to 150,000.
The majority of orders came from pharmacy groups in Australia intending to sell it Down Under. The company also announced it would develop a nasal balm version of its sanitiser. It hopes the product will hit shelves in July.
Holista’s four-month gain is modest in comparison to Zoono. But it has still more than doubled in that time and today’s 48 per cent gain was more than twice Zoono’s.
Recce Pharmaceuticals (ASX:RCE) announced strong results in a toxicity (safety) study on its RECCE 327 compound. Results of up to 12,000mg/kg per day was well tolerated from days one to four with no mortalities or clinical signs. Recce chairman John Prendergast said this placed his company in an encouraging position ahead of human clinical studies.
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