(Sharecast News) - Biological agriculture product developer Plant Health Care said in an update on Monday that it has signed a long-term production and supply agreement with an unnamed Europe-based fermentation company.
The AIM-traded firm said the deal would secure low-cost production capacity of 'Harpin αβ', the active ingredient in its 'ProAct', 'Employ', and 'H2Copla' products, to meet projected global demand.
Volume production cost targets had been met, the company added, ensuring an improved gross margin for Plant and an attractive return on investment for customers.
Continuing manufacturing of PREtec peptides within the same facility, meanwhile, would support new product regulatory filings and the commercialisation of PREtec-based products.
"I am pleased to move our product manufacturing to a high-quality facility in Europe that has both the experience and capacity to meet our current product volume requirements as well as projected future increased demand for our Harpin αβ products and the PREtec product portfolio, including 'Saori'," said chief operating officer Jeff Tweedy.
"By eliminating the need to pay certain import tariffs and other costs, gross margin is expected to improve for our Harpin αβ business beginning in 2023."
At 0950 BST, shares in Plant Health Care were up 0.87% at 10.34p.
Reporting by Josh White at Sharecast.com.
Plant Health (PHC)