Health: Cross-continental expansion moves shares for germ killer Zoono
Health & Biotech
Health & Biotech
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Expansions into China, the Middle East, the Balkans and South Africa are driving up the share price of bug-killing biotech Zoono (ASX:ZNO) this morning.
Zoono is in the midst of a turnaround.
Its shares have been trading at all-time lows of late, following a 27 per cent hit to revenue and a deep dive into the red in FY19.
The company admitted in its annual report that it “simply does not have either the funding necessary to build a retail brand or, with its limited human resources, the capacity to build a global retail business”.
This necessitated a change in focus towards developing a core group of potential business-to-business customers in key geographic regions.
And, at least for now, that appears to be paying off. ZNO shares rose to a high of 9.5c this morning, a 17 per cent gain and their highest point since July.
Late last week Zoono announced an expansion into China, via a distribution agreement for its antimicrobial products with Guangzhou Sanchengyun, and today told the market of three new distribution agreements in Asia, Europe and Africa.
The deals will see Zoono’s products marketed in Bosnia-Herzegovina, Croatia, Serbia, Montenegro, South Africa, Botswana, Lesotho, Swaziland, Zambia, Namibia, Egypt, Syria and Iraq, for the next five years.
It could bring the company a windfall of well over $10 million by 2024.
Paul Hyslop, Zoono CEO, said the four new distribution agreements were proof the company’s decision to focus on B2B marketing, rather than consumer marketing, was working.
“Approximately 12 to 15 months ago, we embarked on a plan to revitalise our global distribution strategy. Initially, we took several steps back, primarily in an effort to achieve greater control of its distribution arrangements,” he said.
“In doing so, we have terminated many of our existing, but unproductive, distribution arrangements and, in their place, focused on the appointment of distributors with specific expertise or proximity to regional markets or key niche markets within those regions.”
Paradigm (ASX:PAR) hits another all-time high. Shares in the well-advanced biotech hit $3.03 this morning after announcing it had identified the source of the pain mediator, nerve growth factor (NGF) in bone cells osteoarthritis patients. Its drug PPS inhibits NGF production in these cells and thereby reduces pain in patients with OA.
ResApp (ASX:RAP) reports sleep apnoea news. ResApp said its technology, in the form of a smartphone placed on a bedside table that records and analyses a person’s breathing and snoring sounds, could accurately diagnose obstructive sleep apnoea, so long as that person was on their own (ie not with a partner or pet). Shares gained 11 per cent.
Noxopharm’s (ASX:NOX) drug showing good signs. The company’s Veytronda, a drug designed to boost the effectiveness of two forms of radiation therapy in prostate cancer with the aim of relieving pain, is proving promising. New data shows it boosts the effectiveness of 177LuPSMA radiation therapy in advanced prostate cancer.