The Nufarm Ltd (ASX: NUF) share price climbed higher today following a positive announcement from the company during afternoon trade.
At market close, the agricultural chemicals company's shares finished up 3.33% high, trading at $4.51.
What did Nufarm announce?
Investors are buying up Nufarm shares in hopes that the company's latest news will see penetration into new markets.
According to its release, Nufarm advised that the United States Food and Drug Administration (FDA) has approved its Nutriterra Omega-3 Canola Oil as a new dietary ingredient.
Developed by Nuseed, a wholly-owned subsidiary of Nufarm, the Canola-based Omega-3 canola oil is the world's first plant-based source of DHA and EPA long-chain omega-3 fatty acids.
Its Omega-3 profile can be used to support human nutrition (marketed as Nutriterra) and fish feed (marketed as Aquaterra).
A human clinical trial previously conducted by Nuseed recorded significantly improved omega-3 levels leading to reduced cardiovascular and cognitive risks. The dietary supplements quickly absorbed the oil's long-chain omega-3, which were merged into blood lipids.
Nufarm also believes its Aquaterra product can reduce pressure on fisheries to catch wild-fish stocks.
The company has obtained human food and fish feed approvals in Australia, New Zealand, and Canada. Additional regulatory applications in other key markets around the world are progressing.
Management commentary
Nufarm CEO, Greg Hunt commented:
The FDA's acknowledgment along with our recently completed human clinical trial, allows us to progress our plans to expand into the human nutrition market and meet a growing demand for plant-based omega-3 essential oil options.
Mr Hunt went on to add:
With FDA recognition of Nuseed's conclusion that Nutriterra is a safe new dietary ingredient, we are well placed to secure commercial partnerships that will attract new consumers, enter into new segments and raise consumption of omega-3.
About the Nufarm share price
Over the last 12 months, Nufarm shares have gained a little over 5%, with year-to-date up around 10%. The company's share price reached a 52-week high of $5.60 in April, before treading lower.
Nufarm has a market capitalisation of roughly $1.7 billion, with approximately 379 million shares on its books.
