- After detailing its success with an African Swine Fever treatment yesterday, Zoono has landed an exclusive distribution deal in China
- The deal is for an initial 10-year term and will earn the company at least $18 million in the first three years
- African Swine Fever is a disease affecting wild and domestic pigs and currently doesn't have a cure
- Last year it spread to eastern China, posing a major threat to global trade, pig farmers and industry workers
- Across two big days of announcements, Zoono's share price is up almost 70 per cent on its Friday closing price
- Today, shares in the company are up 25 per cent and trading for 40 cents each
Biotech company Zoono's (ZNO) share price is continuing to rise after announcing it has secured an exclusive Chinese distributor for its product which treats African Swine Fever (ASF).
The deal, which has seen Zoono join forces to establish a new company - Zoono China International Trading, is for an initial 10-year term and will see Zoono paid at least $18 million in the first three years.
Yesterday, Zoono released an update which outlined the success its treatment for ASF has had. The disease, which affects wild and domestic pigs, currently doesn't have a cure and has wiped out a quarter of the world's pig population.
When testing Zoono Z71 over three weeks, treated pigs showed no signs of the disease and no fatalities. In contrast, in non-treated pens, a number of pigs fell ill with ASF and deaths were recorded.
Last year, the disease spread to eastern China and in doing so has posed a major threat to the global pork industry. ASF contamination has the potential to be detrimental to global trade, pig farmers and industry workers.
"One of the key focuses of the new distributor will be the use of Zoono products to minimise the impacts of ASF within the pig population in China," the company wrote in today's release.
Under the new deal, Zoono has received the first orders for its products and it is a requirement to receive full payments before shipments are made.
Over two big days of announcements, Zoono's share price has rocketed almost 70 per cent in comparison to last Friday's closing price. Today the company's share price is up 25 per cent at 1:00 pm AEDT, with shares trading for 40 cents each.