Medlab Clinical shares up ~13% after UK trade deal for patented probiotic NRGBiotic
Health & Biotech
Health & Biotech
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Medlab Clinical share price is soaring ~13.40% today to 11 cents on the back of a trade deal with UK’s Cultech Limited for its NRGBiotic.
Australian biotech Medlab Clinical (ASX:MDC) has opened up a massive new northern hemisphere trade front, after securing a deal with the former contract manufacturer of its patented probiotic – NRGBiotic, for patients with major depressive disorders.
The three-year trade deal with UK-based Cultech Limited is for NRGBiotic to initially enter the giant UK health pharmacy sector.
There is also the optionality for European and US expansion.
NRGBiotic was developed, researched and patented by Medlab Clinical and is manufactured by Cultech Ltd in the UK for its worldwide use.
Cultech are specialised probiotic experts and have their own branded line called PRO-VEN Probiotics, which is distributed in the UK by the Boots Pharmacy group, Holland and Barret Health Foods Stores and Discount Super Drug Pharmacies, as well as online.
Under the agreement terms NRGBiotic will be subject to a new name and continue to be manufactured by Cultech exclusively for the PRO-VEN range and its UK distribution channels.
Non-exclusive optionality is covered for PRO-VEN’s European and US expansion plans.
Medlab CEO Dr Sean Hall says the deal marks a major milestone for the company.
“This marks our first global nutraceutical deal since the divestment of the Australia only licence to Pharmacare and secondly, we know Cultech very well as we have worked with them on several products inclusive of NRGBiotic for over a decade,” Hall said.
“Cultech are considered global leaders and experts in their field, and we are really happy the NRGBiotic is now part of their branded lines.”
Cash receipts from customers for the quarter amounted to $0.9m on the back of strong operating revenues of $1.3m.
The month of March saw a cash burn rate of $0.3m, totalling $2.6m for the full quarter. Most of Medlab’s expenditure, including salaries, are research and development (R&D) related, so are expected to be returned through innovative government tax rebates.
This article was developed in collaboration with Medlab Clinical, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.