Shares in Vitrafy Life Sciences Ltd (ASX: VFY) have traded more than 25% higher after the company announced a major agreement with global animal reproduction company IMV Technologies.
Under the agreement, set out in a statement to the ASX on Thursday, it is anticipated that Vitrafy's "next-generation" cryopreservation technology will be integrated with IMV's globally recognised product offering.
Vitrafy goes on to explain:
This agreement establishes a 12-month strategic collaboration to co-develop a market-ready solution that brings together the strengths of both organisations – expertise, product portfolios and scientific innovation – to establish a new benchmark in reproductive cryopreservation across farm animals, and aquaculture. Upon the successful completion of the program of work under this Agreement, it is anticipated that a long-term commercial agreement between Vitrafy and IMV will be executed. A long-term commercial agreement would enable IMV to deliver Vitrafy's state of the art reproductive cryopreservation service offering to the farm animal market, accelerating adoption within the highly concentrated, global animal market.
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Big deal for the company
Vitrafy Managing Director Brent Owens said the deal was a significant step in the company's commercialisation strategy.
By partnering with the global leader in animal reproduction, we accelerate the validation and adoption of our cryopreservation technology at scale. This Agreement creates immediate revenue opportunities but also positions Vitrafy for long term growth through global market access, while we continue to advance our human health strategy in North America.
IMV, the press release from Vitrafy said, is a global leader in animal reproductive technology, "specialising in advanced products and services that support artificial insemination, cryopreservation and reproductive management across farm animals, aquaculture and companion animals''.
Founded in 1963, IMV is recognised as the global leader in providing products and services that support the artificial insemination of animals. With an international footprint (that spans 128 countries) and a comprehensive product portfolio, IMV's products and services support more than half a billion inseminations each year—equating to approximately 1 insemination every 7 seconds using an IMV product.
Vitrafy said IMV had decades of experience developing and commercialising products and a strong global footprint.
Revenue to flow
Under the 12-month agreement, Vitrafy will be paid a monthly fee of up to $480,000 plus potential milestone payments of $450,000.
Vitrafy shares traded as high as $1.66 on the news, up 26.7%, before settling back to be 21.4% higher at $1.59.
Vitrafy was valued at $83.6 million at the close of trade on Wednesday.
