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Bioxyne finds support as probiotics business booms

Last updated: 17:00 03 Nov 2015 AEDT, First published: 16:00 03 Nov 2015 AEDT

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Bioxyne (ASX:BXN) shares jumped as much as 39% today on the back of positive sales numbers for the company’s probiotics business and favourable foreign exchange conditions with U.S. and European customers.

Shares in the Sydney-based life sciences, health and medical technologies company were last trading at A$0.025 in dramatically higher than average volumes.

This valuation marks an 127% increase for the stock compared to just a week ago.

The investor attention followed a 36% increase in cash collections from probiotics sales during the three months to September, which in turn drove a year-on-year tripling of net profit for the quarter to $387,000.

Probiotics are live microorganisms that, when administered in adequate amounts confer a health benefit to the host. According to Global Industry Analysts Inc, the global probiotic market is expected to exceed $28.8 billion in value by 2015 and to almost double by 2020.

The latest trading spike has also coincided with a vote of confidence from non-executive director Patrick Ford, who has made an on-market purchase of 250,000 Bioxyne shares for a cash consideration of $4,000, or $0.016 per share.

Ford has an extensive experience in advisory services to the Australian biotechnology sector.

Bioxyne’s cash balance at the end of September was $1.3 million, reflecting a 38% increase over the course of the three-month period.


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