Universal Biosensors Inc. (ASX: UBI) shares are on the run today. This comes as the company's Canadian subsidiary signed a new deal. The news has sent the Universal share price 4.5% higher to 46 cents.
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What's driving the Universal share price higher?
The Universal share price is surging higher today after the medical diagnostics company announced its Canadian subsidiary, Hemostasis Reference Laboratory Inc (HRL), has signed a new deal with Bayer AG.
HRL provides laboratory testing services in the areas of coagulation. The company performs clinical trials, research studies, and compound analysis, as well as validation testing on equipment. HRL assists global diagnostic manufacturers, pharmaceutical and clinical researchers, and contract research organisations.
According to its release, Universal advised that the agreement will see its laboratory business provide specific services to Bayer, "relating to the performances of laboratory analysis of biological samples."
Management did not state the length of the contract, but did say it will be for an agreed period of time. HRL estimates the new partnership will generate CAD$1.3 million in additional revenue.
What did the CEO say?
Universal CEO Mr John Sharman commented on the strategic partnership, saying:
HRL is our laboratory service business in Canada and is an important asset in our blood testing business. We are looking to grow HRL and expand the client base over time. The contract with Bayer is a significant first step and we expect to be in a position to announce additional contracts with other customers over the course of the next six months.
How has the Universal share price performed in 2020?
This Universal share price has had a stellar year, gaining close to 150% over the past 12 months. The company's shares fell to an all-time low of 13 cents in March, before quickly rebounding.
Earlier this month, the Universal share price reached a multi-year high of 50 cents after the company announced its distribution agreement with Grapeworks.
Based on current share price levels, the company commands a market capitalisation of around $78 million.
