Why the Zoono share price rocketed another 19% higher today

Here's why the Zoono Group Ltd (ASX: ZNO) share price has rocketed another 19.26% today to close at $2.26.

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The Zoono Group Ltd (ASX: ZNO) share price rocketed another 19.26% today to close at $2.26. This follows what appears to be further positive upwards market momentum following two ASX announcements made last Friday.

The first announcement was regarding successful test results for Zoono's products against COVID-19, while the second announcement relates to an update on its distribution agreement with Eagle Health Holdings Ltd (ASX: EHH).

Zoono is a global biotech company that specialises in the development, manufacture and global distribution of antimicrobial solutions.

Since 10 January, the Zoono share price has rocketed upward from $0.56 to reach today's closing price of $2.26, a massive 304% gain. In the last 3 days of trading (including today), Zoono shares have shot up 66% from last Wednesday's closing price of $1.36.

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Zoono product >99.99% effective against coronavirus

In an ASX announcement last Friday morning, Zoono revealed it had received a report for laboratory tests undertaken against COVID-19.

According to Zoono, the results indicated that Zoono's Z-71 Microbe Shield is more than 99.99% effective against COVID-19. This microbe shield is the same Zoono technology used in its Zoono hand-sanitiser.

The company confirmed to the market that its products had been successfully tested against a variety of pathogens for periods of up to 30 days on surfaces and for 24 hours on hands.

The company added that this recent test further demonstrates the ability of the Zoono technology to be part of the solution to prevent and protect against the spread of the COVID-19 virus.

Update on the agreement with Eagle

In a second announcement to the market last Friday, Zoono relayed an announcement from Eagle providing an update to the distribution agreement between the two companies.

Eagle is a health and nutritional products business that develops, manufactures and distributes products into 26 provinces in China.

Under the agreement, Zoono and Eagle have a 'co-branding' arrangement through which Eagle will import Zoono's formulations in bulk to Eagle's wholly-owned good manufacturing practice (GMP) certified pharmaceutical facility in Xiamen China. At this facility, Eagle will carry out the labelling, packaging and distribution of Zoono's formulations into Eagle's existing channels.

On Friday, Eagle announced it was awaiting the final inspection of its GMP pharmaceutical facilities by the Xiamen's local government. This was in regard to the additional licenses required by Eagle to facilitate the packaging and distribution of Zoono products. This final inspection is currently scheduled for 3 March.

Additionally, Eagle also announced that the first shipment from Zoono, approximately 4 tonnes of product, was being prepared for transport to Xiamen and was scheduled to be despatched from Auckland that very day.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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