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TICKERS: VIV

Sales of Antibiotic Alternative for Livestock Feed Accelerate in Asia

Source:

With antibiotic resistance a major health issue, the search is on for effective alternatives to replace antibiotics in livestock feed to promote growth.

A small-cap Canadian company, Avivagen Inc. (VIV:TSX.V), has developed a feed supplement, OxC-beta™ Livestock, which, "by safely supporting immune function, promotes general health and performance."

Avivagen's proprietary OxC-beta Livestock has been shown "to be effective and economic as an alternative to the antibiotics commonly added to livestock feeds." OxC-beta Livestock is currently available for sale in the Philippines, Taiwan, Thailand, New Zealand, the U.S. and Mexico.

"This looks like a good point to accumulate the stock." - Clive Maund

One of the first countries to use OxC-beta is the Philippines, and sales remain strong there. Avivagen recently announced that its partner in the Philippines, UNAHCO, has just placed an order for 2.1 metric tons of the product, the third multi-ton order this year and the second in three months, demonstrating high demand in the growing Philippine market.

"UNAHCO seeks to expand use of OxC-Beta Livestock with new application in broilers, creating new market opportunity for expanded use in a wide variety of feeds worldwide," Avivagen noted.

"We continue to see exceptional growth for Avivagen and innovative applicability of OxC-beta Livestock in the Philippines and throughout Asia-Pacific," said Kym Anthony, CEO of Avivagen. "In our view, UNAHCO's application of OxC-beta Livestock for broilers is further evidence that the appetite for alternatives to antibiotics in livestock feed is growing, and that Avivagen has become the trusted long-term provider for feed producers in Asia-Pacific and around the globe."

Avivagen notes that "OxC-beta Livestock has the potential to eliminate the use of antibiotics as growth promoters in livestock feed, a problem requiring an urgent solution and which represents a multi-million-dollar market opportunity worldwide."

"UNAHCO continues to see the applicability and benefit of using OxC-beta Livestock as an ingredient to a number of in-demand feeds, including swine and broilers. With continued recurring orders and evaluation for uses in more types of feed, it's clear that there are opportunities for continued growth and expanded use not only in Asia-Pacific but globally," stated Anthony.

Avivagen recently received approval to sell OxC-beta Livestock in Mexico for broiler and pigs. That segment of the market consumes approximately 16 million tons of feed annually. The company has contracted with Meyenberg International Group to lead the distribution agreement process in the country.

In addition to OxC-beta LIvestock, Avivagen sells Vivamune™ Health Chews in the U.S., Canada and Taiwan for companion animals, such as dogs. It also has begun discussions with nutraceutical companies to develop products for human consumption.

On October 6, when Avivagen's shares were trading at CA$0.57, technical analyst Clive Maund wrote, "With the strong volume pattern and volume indicators suggesting that a new bull market is incubating, this looks like a good point to accumulate the stock." Shares are currently trading at around CA$0.55.

Avivagen has 38 million shares outstanding, with about 5% held by insiders and more than 20% by institutions, including Pathfinder, AlphaNorth and Bloom Burton.

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Avivagen. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Avivagen. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avivagen, a company mentioned in this article.

Additional Disclosures

Clive Maund does not own shares of Avivagen and neither he nor his company has been paid by Avivagen.




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