The Zoono Group Ltd (ASX: ZNO) share price has rocketed 22% higher so far today. Zoono has seen very strong share price growth since last September, and particularly since the outbreak of the coronavirus.
The Zoono share price was sitting at just $0.072 in September last year and has since shot all the way up to $1.88 at the time of writing – a phenomenal 2,511% increase.
Zoono is a global biotech company that is involved in the development, manufacture and global distribution of a unique range of long-lasting and environmentally friendly antimicrobial solutions. The company currently has a market capitalization of $307 million.
Following the coronavirus outbreak, Zoono commented that there has been a high interest in Zoono’s technology given its proven efficacy against viruses and bacteria, and ability to prevent cross-contamination.
Recently, Zoono reported unaudited revenues for the quarter so far to 10 February 2020 of NZ$2.4 million, with on-line sales in Australia and New Zealand contributing strongly.
Announcement in response to coronavirus
On 30 January 2020, Zoono announced to the market its confidence of being well-positioned to be part of the solution to both coronavirus and other new virus threats. The company believes that its Zoono technology, particularly its longevity and killing methodology, delivers an ideal solution.
At this time, the company stated that Zoono’s Z71 Microbe Shield Surface Sanitiser was successfully tested in 2014 against bovine coronavirus (a surrogate recognised by the World Health Organisation for other members of the coronaviridae family, including the MERS virus). Test results confirmed a 99.99% efficacy in five minutes.
Zoono’s Z71 Microbe Shield Surface Sanitiser and GermFree24 Hand Sanitiser products were recently sent to a German laboratory for testing against the latest Chinese strain of the coronavirus (2019-nCoV).
Operationally, once the impact of the new coronavirus emerged, Zoono made an immediate decision in early January to ramp up production of its key active ingredients and its Z71 Microbe Shield Surface Sanitiser and GermFree24 Hand Sanitiser finished goods.
Recent agreement for Chinese childcare & hotel sectors
A week ago, on February 10, Zoono announced it had entered into an exclusive distribution agreement with Beijing Youmeng Technology and Development Limited for the childcare and hotel sectors in China.
At this time, Zoono had received an initial payment of NZD$775,000 from Beijing Youmeng Technology and Development Limited.
Zoono commented that this agreement in the childcare and hotel sectors in China is another step in Zoono’s strategy to focus on specific sectors and on the appointment of reputable distributors with explicit expertise in these market segments.
Zoono also pointed out that it has sought to exercise greater control over the activities and performance of its distributors in its new distribution arrangements.
This agreement is the fourth distribution agreement entered into by the company for an industry sector in the Chinese market in the last six months.
The post Why this small cap biotech has rocketed 2,511% in the last 5 months appeared first on Motley Fool Australia.
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