This probiotics company has just struck a distribution deal, sending its shares sharply higher

Shares in Biome Australia have jumped after the company announced a distribution deal for its probiotic products in Canada.

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Shares in Biome Australia Ltd (ASX: BIO) have jumped after the company announced a distribution deal for its probiotic products in Canada.

The company said in a statement to the ASX on Monday that all of its biome-activated probiotics products had been approved for launch on Fullscript Canada, which services more than 100,000 practitioners and five million patients across North America.   

The company added:

The Fullscript partnership represents a significant milestone in Biome's Canadian expansion, providing access to the dominant platform for practitioner-to-patient supplement dispensing across the region. The North American integrative medicine market has grown at a 25% CAGR, with approximately 80% of healthcare professionals now recommending supplements in some capacity.

Biome Australia said Canada had a stringent regulatory framework which creates a significant barrier to entry, "favouring established, compliant brands like Activated Probiotics''.

Building on established wins

The company said the new agreement was complementary to its existing partnership with Ecotrend Ecologics, which was one of Canada's leading natural health products distributors.

The company elaborated further:

This dual-channel approach ensures Biome's Activated Probiotics range is accessible to practitioners regardless of their preferred dispensing model, whether maintaining in-clinic inventory through wholesale ordering or utilising Fullscript's innovative e-prescribing platform that ships products directly to patients' homes.

Biome Australia Managing Director Blair Norfolk said the new agreement was significant for the company.

Securing approval on Fullscript is a pivotal milestone in our Canadian expansion. Combined with our existing Ecotrend partnership, we now have complete coverage of the Canadian practitioner market, traditional wholesale through Ecotrend for in-clinic dispensaries, and digital direct-to-patient through Fullscript. This dual-channel approach removes any barriers to practitioners choosing Activated Probiotics for their patients. This partnership demonstrates continued momentum in our Vision 27 international expansion strategy. We're systematically building scale across key markets, Canada, Ireland, New Zealand and the UK—establishing Biome as a truly global leader in evidence-based microbiome health. Fullscript's broader platform reach positions us well for ongoing growth opportunities.

Biome Australia shares were 8.3% higher at 48.7 cents. The company was valued at $101.3 million at the close of trade on Friday.

The company released a trading update last month, which said that second-quarter revenue was $6.48 million, up 40.9% on the previous corresponding period and up 9.1% on the first quarter of the year. The company said this was particularly strong given that the Christmas trading period was traditionally softer.

First half revenue of $12.42 million was up 40.2% on the previous corresponding period.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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