The Bluechiip Ltd (ASX: BCT) share price is rocketing to a 3-month high today. This comes after the company announced a lucrative contract with California-based Fujifilm Irvine Scientific, Inc. (FISI).
At the time of writing, Bluechiip shares are surging 63.33% higher to 4.9 cents apiece.
Bluechiip signals strong growth opportunity ahead
Bluechiip develops temperature and tracking solutions for biosamples in the health and life sciences industries. Today, investors are driving up the Bluechiip share price following the company's latest news to the ASX.
In its statement, Bluechiip advised it has signed a two-year licence and development agreement with FISI.
Founded in 1970, FISI is the world's leading manufacturer of cell culture media, reagents, and medical devices. These products are used across cell therapy, regenerative medicine, assisted reproductive technology (ART), and industrial cell culture markets.
Under the agreement, FISI will pay Bluechiip to customise and develop a range of technologies for the ART (also known as in-vitro fertilisation, or IVF) market segment. The goal is to improve the traceability of samples and simplify workflows for FISI.
During this initial licence and development period, the companies will work together to agree on a supply agreement for the sale and distribution of the customised Bluechiip products including minimum volumes, pricing, and detailed commercial terms.
Commenting on the news fuelling the Bluechiip share price today, managing director Andrew McLellan said:
Our agreement with FISI will make some contribution to our revenues by way of licence and development fees over the next 18-24 months, but most importantly this agreement provides Bluechiip a solid foothold in a lucrative worldwide market, with a strong international partner.
With more than 2.5 million IVF cycles performed globally each year, the total potential market for a new FISI system incorporating Bluechiip enabled technology is attractive and is expected to result in significant business growth.
About the Bluechiip share price
Over the past 12 months, Bluechiip shares have moved sideways, resulting in a 2% loss for the period. However, its shares have gained around 13% this year to date.
Based on today's price, Bluechiip has a market capitalisation of roughly $29.3 million, with approximately 597.9 million shares on issue.