With antibiotic resistance a major health issue, the search is on for effective alternatives to replace antibiotics in livestock feed to promote growth.
A small-cap Canadian company, Avivagen Inc. (VIV:TSX.V), has developed a feed supplement, OxC-beta™ Livestock, which, "by safely supporting immune function, promotes general health and performance."
Avivagen's proprietary OxC-beta Livestock has been shown "to be effective and economic as an alternative to the antibiotics commonly added to livestock feeds." OxC-beta Livestock is currently available for sale in the Philippines, Taiwan, Thailand, New Zealand, the U.S. and Mexico.
One of the first countries to use OxC-beta is the Philippines, and sales remain strong there. Avivagen recently announced that its partner in the Philippines, UNAHCO, has just placed an order for 2.1 metric tons of the product, the third multi-ton order this year and the second in three months, demonstrating high demand in the growing Philippine market.
"UNAHCO seeks to expand use of OxC-Beta Livestock with new application in broilers, creating new market opportunity for expanded use in a wide variety of feeds worldwide," Avivagen noted.
"We continue to see exceptional growth for Avivagen and innovative applicability of OxC-beta Livestock in the Philippines and throughout Asia-Pacific," said Kym Anthony, CEO of Avivagen. "In our view, UNAHCO's application of OxC-betaLivestock for broilers is further evidence that the appetite for alternatives to antibiotics in livestock feed is growing, and that Avivagen has become the trusted long-term provider for feed producers in Asia-Pacific and around the globe."
Avivagen notes that "OxC-beta Livestock has the potential to eliminate the use of antibiotics as growth promoters in livestock feed, a problem requiring an urgent solution and which represents a multi-million-dollar market opportunity worldwide."
"UNAHCO continues to see the applicability and benefit of using OxC-beta Livestock as an ingredient to a number of in-demand feeds, including swine and broilers. With continued recurring orders and evaluation for uses in more types of feed, it's clear that there are opportunities for continued growth and expanded use not only in Asia-Pacific but globally," stated Anthony.
Avivagen recently received approval to sell OxC-beta Livestock in Mexico for broiler and pigs. That segment of the market consumes approximately 16 million tons of feed annually. The company has contracted with Meyenberg International Group to lead the distribution agreement process in the country.
In addition to OxC-beta LIvestock, Avivagen sells Vivamune™ Health Chews in the U.S., Canada and Taiwan for companion animals, such as dogs. It also has begun discussions with nutraceutical companies to develop products for human consumption.
On October 6, when Avivagen's shares were trading at CA$0.57, technical analyst Clive Maund wrote, "With the strong volume pattern and volume indicators suggesting that a new bull market is incubating, this looks like a good point to accumulate the stock." Shares are currently trading at around CA$0.55.
Avivagen has 38 million shares outstanding, with about 5% held by insiders and more than 20% by institutions, including Pathfinder, AlphaNorth and Bloom Burton.