landed a 1.2-ton order of its OxC-beta antibiotic-free livestock feed additive for use in Brazil, reported Noble Capital Markets analyst Joseph Gomes in a November 30, 2022 research note.
The order came through AB Vista, Avivagen's exclusive distribution partner covering the U.S., Brazil, and Thailand. AB Vista will use the OxC-beta in ongoing trials involving several large Brazilian cattle and poultry producers.
"This is a stepping stone in Avivagen's aggressive marketing in OxC-beta, as the order represents increased awareness of the product," Gomes wrote.
OxC-beta is one of the products for livestock, companion animals, and humans this early-stage revenue company is developing and commercializing.
Gomes highlighted that Avivagen "is at an inflection point with significant sales increases just around the corner and presents a favorable risk-reward proposition."
As such, Noble maintains its Outperform rating and $1 per share price target on the life sciences firm. The target implies a significant potential return as Avivagen's current share price is around $0.18.
Regarding the new OxC-beta order, the fact that it came from Brazil is noteworthy, Gomes indicated. This is because the South American country produces the third highest quantity of animal feed in the world, more than 80,000,000 tons of it 2021.
More orders from Brazil are expected, Gomes wrote, "as AB Vista has existing relationships and distribution partnerships it can use to further sales of the OxC-beta product."
As for the two leading animal feed-producing countries, China and the U.S., Canada-based Avivagen is still working to gain a foothold in them, noted Gomes. In the States, the company is awaiting a no objection letter from the U.S. Food and Drug Administration, which, the analyst purported, it likely will get. Avivagen is pursuing additional markets, too, such as other Latin American countries.
Also positive for Avivagen, Gomes pointed out, is that another of its products, Vivamune dog supplement chews, is garnering interest and orders, most recently from Taiwan and Mexico.
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