Bioxyne wants to feed Asia’s babies with Kiwi formula; shares jump 75pc
Health & Biotech
Health & Biotech
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Probiotic maker Bioxyne is hoping it will follow the trajectory of A2 and Bubs, today announcing a move into milk formula targeted at South East Asia.
The shares (ASX:BXN) promptly skyrocketed 76 per cent to historic highs, reaching 8.3c in Thursday afternoon trade.
The New Zealand company has traded between 1.2c and 8.7c in the past year and has a current market cap of $43.5 million.
The products behind all the fuss are dairy-based drinks under the BK18 brand with immune-boosting probiotics, for infants as well as the rest of the family.
Direct sales of infant formula in Malaysia are estimated to be worth $US4 billion and will be their initial target market – with a further 16,000 cans of the products already on order for other South East Asian countries.
“Our distributor base has been eagerly awaiting these products and with the infrastructure now in place we look forward to gathering sales momentum as we move into 2018,” managing director NH Chua said.
“In bringing these new products to market it is important to us to ensure that they have the utmost integrity and represents the best that New Zealand has to offer to Asia.”
Alongside the formula, the company have also debuted a probiotic women’s weight loss powder, based on soy protein and apple – said to benefit in anti-ageing, hydration and wrinkle reduction.
The company made $369,000 last quarter, and had $3.2 million in the bank at the end of the period.
Growth in the infant formula sector has enticed companies like goat-milk maker Bubs (ASX:BUB) and Wattle Health (ASX:WHA)
Wattle Health listed in March this year at an issue price of 20c and today was trading at $1.67, partnering with several large Chinese supermarkets and Australian dairies along the way.
Likewise, Bubs commenced trading through a back door listing last year, and in 12 months has gone from an issue price of 10c to trade at 7.4c today.
They were listed on Tmall earlier this year and have reported strong direct to consumer sales in China.