Embrex (Nasdaq: EMBX) says it has received regulatory approval for its Bursaplex infectious bursal disease (IBD) vaccine from the Chinese Ministry of Agriculture.
For the day, shares of EMBX jumped almost 6.5 percent to $13.10, a 79 cent increase over the previous day’s close of $12.31. At one point, the price reached $13.50.
The stock is just starting to creep out of a 52-week low of $10.20, after reaching a high of $25.30 in June. It continued to trade above $20 until August, when it suddenly dropped almost $10.
Embrex says Bursaplex is the world’s only single-dose IBD vaccine designed to effectively and safely protect poultry from bursal disease when maternal antibodies are present. IBD is an immunological disease that causes poor growth and susceptibility to other diseases due to a compromised immune system.
China is the world’s second largest producer of chickens, with an estimated output of more than 6 billion per year. Over 3 billion of these are broilers raised by vertically-integrated producers or in other modern facilities.
Currently, the Chinese eat approximately 14 pounds of chicken per person annually compared to U.S. consumption of approximately 80 pounds per person per year.
Bursaplex combines a vaccine virus with Viral Neutralizing Factor, a proprietary technology developed by RTP-based Embrex. When administered “in ovo,” or at hatch, this vaccine is designed to provide life-long protection against bursal disease.
“Approval from the Chinese authorities for Bursaplex in ovo vaccine is a key next step in bringing the benefits of our in ovo technology to the world’s second largest poultry market,” Randall L. Marcuson, president and chief executive officer of Embrex, said in a statement. “We anticipate a positive response to this approval since bursal disease remains a threat to flocks in China.”
Marcuson adds that with its organization largely in place in China already, Embrex can commence an intensive effort to market Bursaplex vaccine to producers very quickly.
Embrex: www.embrex.com
