An Ottawa life sciences firm that’s developed a natural immune-boosting compound for livestock, pets and humans has landed a series of “significant” orders as it looks to climb out of a deep financial hole following years of sustained losses.
Avivagen has announced a number of new deals over the past three weeks from customers in Asia, Brazil and Mexico. The orders will see the firm ship a total of about six tonnes of its product, branded as OxC-beta, to poultry, livestock and dairy producers in the three countries.
The largest agreement, a repeat order, calls for Avivagen to ship four tonnes of the compound to an Asian livestock producer.
OBJ360 (Sponsored)
CEO Kym Anthony said the deal bodes well for his company as it looks to gain traction despite growing signs of a global economic downturn.
“It’s encouraging to see one of our largest customers in Asia continue to place sizeable orders – which we view as a sign that they remain on target for economic recovery at a time where uncertainty is playing out elsewhere and also confirms the value of our product in economically challenging times,” Anthony said in a statement.
“We are excited for the year ahead as we continue to build on existing and new relationships both in Asia and markets worldwide.”
The string of new orders comes a few months after Avivagen achieved a long-awaited breakthrough – regulatory approval for OxC-beta to undergo large-scale trials in China, the world’s No. 1 market for commercial animal feed.
Anthony said entering the Chinese market could eventually translate into “significant revenues” for Avivagen, which trades on the TSX Venture Exchange in Canada and the OTCQB Venture Market in the U.S.
The company focuses on supplements aimed at replacing antibiotics in cattle and pig feed. Avivagen’s products are derived from carotenoids, organic pigments produced by plants and algae that give fruits and vegetables such as bananas, carrots and tomatoes their bright colours.
Various studies have suggested carotenoids can help reduce the risk of various types of cancers as well as conditions such as Parkinson’s disease in humans.
Avivagen says it’s conducted dozens of tests that prove the natural antioxidants boost the immune systems of livestock, helping to ward off disease without the use of antibiotics – a key selling point at a time when health experts are calling the rise of antibiotic-resistant “superbugs” a simmering global health crisis.
But regulatory approval and market acceptance of OxC-beta have been slow to come, and the company has racked up more than $40 million in accumulated losses since its launch in 2005.
In its most recent financial filings in June, Avivagen said it generated revenues of about $88,000 in the quarter ending April 30, compared with nearly $160,000 the same period in 2021. The firm reported a net loss of about $1.3 million, down from a loss of $2.2 million a year earlier.
Never miss a story. Get OBJ’s daily update in your inbox every Monday to Friday. Click here to subscribe.
