Here’s why the Universal Biosensors (ASX:UBI) share price is soaring 10%

The Universal Biosensor Incorporated (ASX: UBI) share price is up 8% this morning after news of a deal with Deakin and Swinburn.

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Universal Biosensors Inc (ASX: UBI) shares are soaring today after the company shared news of deals with Deakin and Swinburn. At the time of writing, the Universal Biosensors share price is trading 9.68% higher at 68 cents. 

The deals will see the commercialisation of Universal’s Tn Antigen biosensor as well as the development of other biosensors using the company’s electrochemical platform technology.

Let’s look closer at the announcement made by the biotech company this morning.

What was announced?

The Universal Biosensors share price is having a stellar day after the company announced new agreements between it and Deakin University’s Institute of Frontier Metals (DIFM) and Swinburne University of Technology.

Through the deals, Universal Biosensors aims to create a portable device that can sense and monitor cancer from a finger prick of blood.

The two universities have been working on the company’s electrochemical biosensors and the Tn Antigen cancer biomarker for more than 5 years.

The agreement with DIFM will contract half of DIFM’s Senior Fellow Dr Wren Green’s time and resources.

The deal with Swinburne will contract 80% of Dr Saimon Moraes Silva’s time. Dr Silva will be under the supervision of Swinburne’s School Software and Electrical Engineering and Iverson Health Innovation Research Institute’s Professor Simon Moulton.

Combined, the universities should charge the company no more than $300,000, according to the company’s release.

Commentary from management

Universal Biosensor’s CEO John Sharman commented on the agreements, saying:

The knowledge and resources of DIFM and Swinburne will help deliver [a portable device capable of identifying, staging and monitoring cancer] as well as fast track the development of other biosensors we are working on.

Universal Biosensors share price snapshot

The Universal Biosensors share price is having a good year so far on the ASX, with today’s news just the latest boost.

It’s currently up by nearly 45% year to date. It’s also up a whopping 278% over the last 12 months.

The company has a market capitalisation of around $110 million, with approximately 177 million shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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