The Microba Pty Ltd (ASX: MAP) share price is having a stunning day.
In morning trade, the precision microbiome company's shares were up as much as 91% to 42 cents.
The Microba share price has pulled back since then but remains up 45% at 32 cents at the time of writing.
Image source: Getty Images
Why is this ASX healthcare share smashing the market?
Investors have been scrambling to buy this healthcare share after it announced a major deal with Sonic Healthcare Limited (ASX: SHL).
According to the release, Sonic has agreed to invest $17.8 million to acquire a 19.99% shareholding in Microba at 26 cents per share. In addition, the healthcare giant is seeking to acquire options for an additional 5% equity position, subject to shareholder approval. Exercise of these options would result in a further investment of $7.5 million in Microba.
Why is Sonic investing in Microba?
The release notes that Sonic and Microba have agreed initial terms of a strategic alliance to exclusively deliver Microba's microbiome testing technology into Germany, the United Kingdom, and Belgium, along with non-exclusive distribution into Sonic's broader network including Australia, Switzerland, the United States and New Zealand.
Microba's "world-leading technology" is used for measuring the human gut microbiome, supporting the discovery and development of novel therapeutics for major chronic diseases and delivering gut microbiome testing services globally.
Sonic Healthcare's CEO, Dr Colin Goldschmidt, commented:
Sonic Healthcare prides itself on delivering accurate, reliable medical diagnostics services using leading laboratory and informatics technologies. Our partnership with Microba exemplifies our commitment to invest in cutting edge developments in laboratory medicine.
We see microbiome testing becoming a key part of pathology over coming years and are excited about the potential of this partnership and the opportunities that Microba's technology will provide for Sonic's global operations, our referring clinicians, and our patients.
