By The Life Science Report
Source: Streetwise Reports 11/26/2019
The highlights of this investment story are outlined in a Zacks Small-Cap Research report.
In a Nov. 19 research note, analyst David Bautz reported that Zacks Small-Cap Research initiated coverage on Avivagen Inc. (VIV:TSX.V; CHEXF:OTCMKTS) with a US$2.50 valuation. The stock is currently trading at around US$0.39.
Avivagen is developing a line of animal products that promote growth and immunological health through its proprietary oxidized-carotene (OxBC) content. Its products reduce or eliminate animals’ need for antibiotics as a growth promoter. “Avivagen discovered that oxidized B-carotene (OxBC) contains a unique class of polymeric compounds that promote immunological health,” Bautz highlighted.
Get our Weekly Commitment of Traders Report: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
“Avivagen and its partners has shown that supplementation of feed with parts-per-million levels of OxC-beta Livestock can be used as a replacement for growth-promoting antibiotics while offering the same or better growth and health benefits without contributing to the development of antibiotic resistant organisms,” he commented.
Bautz pointed out another positive to the story, that the potential market for Avivagen’s OxC-beta Livestock is “enormous,” at about $1 billion. This estimate is derived from the fact that about 32,000 feed mills produce roughly 1.1 billion metric tons of feed every year, and the global feed market is forecast to hit roughly $37 billion in 2022.
Zacks’ model on Avivagen estimates sales of OxC-beta Livestock to reach CA$50 million in 2024. OxBC is approved in the U.S., the Philippines, Mexico, Thailand, Taiwan, New Zealand and Australia.
Further, Avivagen continues to gain market share in Asia, its priority target, which accounts for 35% of the total amount of animal feed produced each year globally, Bautz noted. Avivagen has several distribution partners in Asia, where the registration process is underway in a number of countries there, including China.
Lastly, indicated Bautz, Avivagen has and is following a set growth strategy. One part is to maximize its existing partnerships “by driving adoption and increasing new applications.” The second is to expand into new markets by getting approvals in additional countries. The third component is to make further distribution deals in approved markets.
As for potential competitors to Avivagen, Bautz wrote, “We were not able to uncover any other company that is developing technology similar to OxC-beta Livestock, however, there are a number of antibiotic alternative products that are available and could be considered competition to Avivagen and OxC-beta Livestock.”
Read what other experts are saying about:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Avivagen. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Avivagen. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avivagen, a company mentioned in this article.
( Companies Mentioned: VIV:TSX.V; CHEXF:OTCMKTS,