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The Select Harvests Limited (ASX: SHV) share price is sinking lower today. This comes after the company released its full-year results for the 2020 financial year. At the time of writing, the Select Harvests share price is trading down 5.9% at $5.84.

What’s driving the Select Harvests share price lower?

The Select Harvests share price is plummeting today after the company released a disappointing result for the past 12 months.

For the period ending 30 September, Select Harvests reported a net profit after tax of $25 million. This reflected a 52% decline on the prior corresponding period (pcp). Although record almond crop was achieved, the fall in global almond prices and delayed shipments heavily offset its strong performance.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came to $57.8 million. In comparison, EBITDA for FY19 recorded $95.2 million. The company attributed the 39% change mainly to higher water prices and orchard lease commitments in its almond division.

At $13.2 million, operating cash flow was down more than 83% over the comparable period. This was a result of COVID-19 impacts with market access issues and delayed customer payments.

Earnings per share (EPS) lost more than 53% with the company registering 26 cents for FY20, as opposed to 55.5 cents in FY19.

Net debt excluding finance leases stood at $57.5 million, with just $1.5 million in cash on hand at the end of the period.

The board declared a fully-franked dividend of 4 cents per share to be paid to shareholders on February 5, 2021.

Management commentary

Commenting on the results, Select Harvests managing director Paul Thompson said:

FY2020 has delivered a third consecutive year of increasing crop volume, validating the company’s targeted horticulture program and investment in risk mitigating frost fans and productivity enhancing on-farm technology. Both our mature and immature orchards again yielded at rates significantly higher than industry standard.

A focus on cost management and consistent high yields helped to mitigate softening almond prices and higher water costs in FY2020.

Mr Thompson said the water market remained challenging in the 2020 season, with record, or near record water prices across the Murray-Darling Basin:

Select Harvests’ balanced water procurement strategy, which includes owning and leasing water entitlements, protected us from the full impact of increases in spot water prices.

The food division continues to confront a challenging domestic market. While underlying demand and sales were higher for our industrial value-added almond business, higher private label penetration and commodity costs negatively impacted the result.

Outlook for FY21

With focus now towards the new financial year, Select Harvests will continue to execute its growth strategy. Management said its 2021 horticultural program retained a positive outlook with good pollination and growing conditions seen to date.

The company said an improvement in weather saw water prices beginning to move back to long-term averages. In addition, Select Harvests has been taking advantages of the favourable situation by acquiring lease and temporary water in recent months.

No guidance was given due to the early start of the new season. With harvest to begin in February 2021, the company hopes to provide investors with a clearer picture of its market and pricing environment.

About the Select Harvests share price

The Select Harvest share price is trading lower since the start of the calendar year, down 28%. After reaching a multi-year high of $9.10 in February, the company’s shares have failed to break the $8 barrier ever since.

Select Harvests has a market capitalisation of $705.7 million and a price-to-earnings (P/E) ratio of 11.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is dropping lower. The benchmark index is currently down 0.2% to 6,587.5 points.

Four shares that have not let that hold them back are listed below. Here’s why they are storming higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 3% to $97.44. This appears to have been driven by news of a strong Black Friday sales period and a jump on the technology-focused Nasdaq index on Friday night. It isn’t just Afterpay on the rise. The S&P/ASX All Technology Index (ASX: XTX) is up 1.75% at the time of writing.

Bega Cheese Ltd (ASX: BGA)

The Bega Cheese share price has continued its ascent and is up a further 4% to $5.64. At one stage today, the diversified food company’s shares stormed to a 52-week high. Investors have been buying the company’s shares after the announcement of an agreement to acquire Lion Dairy & Drinks for $534 million. This will add popular brands such as Dare, Farmers Union, Yoplait yoghurts, Pura milk, and Juice Brothers juices to its portfolio.

Humm Group Limited (ASX: HUM)

The Humm share price is up 4% to $1.29. This follows the announcement of the company’s successful rebranding from FlexiGroup to Humm this morning. Humm is the company’s buy now pay later brand. It is expected to be the key driver of the company’s growth in the future.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price has jumped 7.5% higher to $3.50. Investors have been buying the biopharmaceutical company’s shares after it entered into an agreement to acquire TheraPharm. TheraPharm is a Swiss-German biotechnology company developing innovative diagnostic and therapeutic solutions in the field of hematology. It provides Telix with access to a portfolio of patents, technologies, production systems, clinical data, and know-how in relation to the use of Molecularly Targeted Radiation (MTR) in hematology and immunology.

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Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended FlexiGroup Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Atomos Ltd (ASX: AMS) share price is gaining ground this morning, up by more than 6.3% following the release of a positive trading update for the first-half of FY21. The Atomos share price is trading at $1.01 at the time of writing.

Why did the Atomos share price move higher

Atomos reported that the first-half of FY21 has been a period of continued sales momentum, with return to pre-COVID-19 run-rate revenue levels of $5 million per month.

The company said sales had improved in each of the past four months. Despite growing coronavirus cases and recent lockdown measures in some of its key markets, there has been no impact on the November sales.

Due this momentum, Atomos says that it’s currently on track to deliver a first-half sales result in excess of $28 million. Second-quarter sales are also back to pre-COVID levels, well ahead of the company’s original guidance earlier in the year.

Atomos says it has achieved this result mainly through existing products, with only two new products released during the first five months of FY21.

Cost control measures continue to be in place with fixed costs remaining substantially below pre-COVID levels, with any future increases to be carefully balanced against revenue, the company says.

The company reported a strong cash position of $18.9 million as at the end of November 2020.

Atomos says it is still too early to give any formal guidance for the second-half of FY21. 

What does Atomos do

Atomos is involved in manufacture and sale of video equipment. The company’s stated objective is to expand into the ‘social’ and ‘entertainment’ market segments, whilst maintaining a strong position in the ‘pro video’ segment of the market.

The company’s flagship is  its 5-inch monitor recorder, Ninja V.  The popularity of Ninja V is due to the growing adoption of RAW recording from major global camera makers, with Atomos being the only monitor recorder able to record Apple Inc (NASDAQ: AAPL)’s ProRes RAW format.

RAW is a file format that captures all image data recorded by the sensor when taking a photo. When shooting in a format like JPEG image, information is compressed and lost. Because no information is compressed with RAW, it is able to produce higher quality images.

The company says the global move to online video conferencing driven by COVID-19 lockdowns will present the company with future opportunities to offer improved image and video quality products.

About the Atomos share price in 2020

The Atomos share price has lost 28% of its value in 2020, after its full year revenues dropped by 18% as sluggish demand driven by the pandemic slowed down its business. The Atomos share price enjoyed a 52-week high of $1.67 in February. At the current share price, it commands a market cap of $220 million.

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Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Atomos Ltd. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Viva Leisure Ltd (ASX: VVA) share price is back from its trading halt and pushing higher on Monday morning.

At the time of writing, the health club operator’s shares are up 2% to $3.10.

This leaves the Viva Leisure share price trading within sight of its record high of $3.31.

Why was the Viva Leisure share price in a trading halt?

Viva Leisure requested a trading halt late last week so it could undertake a fully underwritten $30 million institutional placement.

This morning the company announced the completion of the institutional placement, raising $30 million at a 4.3% discount of $2.90 per new share. Approximately 10.3 million new Viva Leisure shares are to be issued under the placement.

According to the release, the placement was well supported by both existing shareholders and several new institutional investors.

Why was Viva Leisure raising funds?

Management advised that the proceeds will be used to pursue future growth opportunities. This includes the acquisition of health clubs and locations, the buyback of franchisee owned Plus Fitness centres, and greenfield rollouts.

It believes this will accelerate Viva Leisure’s growth and help it execute on its target of having 400+ corporate owned locations by 2025. This compares to the 79 locations it had operating at the end of FY 2020.

Management notes that it has identified a plan to add approximately 300 locations across its network. This will be through utilising its pipeline of franchisee owned Plus Fitness franchises, the continuous roll out of new greenfield locations, and other acquisitions.

Viva Leisure’s CEO and Managing Director, Harry Konstantinou, commented: “We are pleased with the support that Viva Leisure has again received from both existing and new institutional investors. We will look to immediately deploying the funds raised to accelerate our growth and execute on our 2025 target of having 400+ corporate owned locations.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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News Corporation (ASX: NWS) reportedly declined a buyout offer of its troubled pay television subsidiary Foxtel.

An unnamed special purpose acquisition investment company (SPAC) approached News Corporation with an offer to buy Foxtel, according to SMH.com.au.

A SPAC, which is also called a “blank cheque company”, is a publicly listed entity that’s cashed up with the sole purpose of acquiring an unlisted business.

The United States concept is a cousin of the Australian phenomenon of “reverse-listing”, in which a company can float on the ASX without going through the normal rigours of a new listing.

A sale would have provided relief for Foxtel, which owes $2.1 billion of debt.

News Corporation, which owns 65% of the pay TV brand, did not accept the takeover proposal.

In early Monday morning trade, the News Corporation share price is down 0.53% to $24.41. It had rallied for the past month after trading at $18.14 on 30 October.

News Corporation and Foxtel declined to comment to The Motley Fool.

Foxtel’s slow death

Foxtel has been on a downward slope in recent years, losing clientele and revenue to cheaper streaming services from Stan, Netflix Inc (NASDAQ: NFLX), Walt Disney Co (NYSE: DIS) and Amazon.com Inc (NASDAQ: AMZN).

Its one saving grace was live sport, but even that’s now under attack after Nine Entertainment Co Holdings Ltd (ASX: NEC) secured the broadcast rights to Australian rugby union this month.

Nine intends to put much of that content on its Stan streaming service.

The COVID-19 pandemic has also devastated Foxtel’s pubs and clubs subscription base, which was formerly a reliable cash cow.

Last year the pay TV operator tried to raise billions to pay off old debts. It was unsuccessful, and News Corp was forced to chip in $300 million. Minority shareholder Telstra Corporation Ltd (ASX: TLS) declined to put any more money into the sinking ship.

In November, Foxtel finally managed to refinance $1.1 billion of its debt to provide it more breathing space in terms of time due.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Tony Yoo owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Netflix, and Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short January 2021 $135 calls on Walt Disney. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Amazon, Netflix, and Walt Disney. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Newcrest Mining Ltd (ASX: NCM) share price is dropping lower on Monday despite the release of a positive announcement.

In morning trade, the gold miner’s shares are down 1% to $26.86.

What did Newcrest announce?

This morning Newcrest announced that it has entered into a fully-termed joint venture agreement with Greatland Gold for the Havieron Project. This project is located 45km east of Newcrest’s existing Telfer operation.

As part of the agreement, the company has provided Greatland Gold with a US$50 million loan to fund certain early works and growth drilling activities at the project.

This means that Newcrest has now met the Stage 3 expenditure requirement of US$45 million and is entitled to earn an additional 20% joint venture interest. This will result in an overall joint venture interest of 60%.

In addition to this, Newcrest has entered into a farm-in and joint venture agreement with respect to Greatland Gold’s Black Hills and Paterson Range East exploration licences. This is through a new joint venture agreement with Greatland Gold called the Juri Joint Venture.

These projects are located within the Paterson Province, approximately 50km from the Telfer operation. The new joint venture covers a huge area of approximately 248km.

Newcrest’s Managing Director and Chief Executive Officer, Sandeep Biswas, is very excited with these projects.

Mr Biswas commented: “We are excited to extend our relationship with Greatland Gold and expand our presence in the highly prospective Paterson Province. The Havieron Joint Venture and Loan Agreements support the continued progress at Havieron with the potential to deliver commercial production within two to three years from the commencement of the decline.”

“The Juri Joint Venture complements our strong pipeline of exploration prospects and the associated tenements are favourably located in close proximity to our established Telfer operation,” he concluded.

Why is the Newcrest share price dropping lower?

While this is a positive development for Newcrest, it hasn’t been enough to offset another pullback in the gold price at the end of last week.

The spot gold price is currently fetching US$1,789 an ounce, which is down 1% since this time last week.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Keytone Dairy Corporation Ltd (ASX: KTD) share price is near the same level it started at when the company first debuted on the ASX in July 2018. However, the Kiwi dairy producer has continued to develop its operational and financial performance despite its underwhelming share price performance to date.

The company today announced record sales for the 6 months ending 30 September 2020. The Keytone Dairy share price is currently trading 6% higher at 26.5 cents at the time of writing. 

First half FY21 highlights

Keytone Dairy continued record sales growth across all divisions, with sales totalling more than $24.5 million for the first six months of FY21. This exceeds the 12-month full year FY20 result of $22.5 million. 

Keytone’s proprietary product grow increased 141% to $2.3 million. Significant retail ranging was delayed due to COVID-19 and implemented only after 30 September 2020 and is not reflected in the results to date. 

The company continues to experience strong growth in its private label business with substantial increased forecasts received from existing clients for 2021 and new contract wins across Australia and New Zealand.

Along with an increase in revenue, its Australian and New Zealand operational business units all recorded underlying earnings before interest, tax, depreciation and amortisation (EBITDA) profitability. The group’s consolidate normalised EBITDA loss decreased 57% to $900,000, compared with prior corresponding period loss of $2.1 million. 

Its EBITDA has been negatively impacted by initial retail rebates, promotions and marketing to establish brand awareness and achieve market penetration in key retail channels. The company expects these costs to normalise over time. 

Commenting on the results, Keytone Dairy CEO Danny Rotman said: “The company has continued to grow sales at an impressive rate, significantly reduce operational cash burn and gain important distribution in key retail channels for our proprietary brands”. 

As at 30 September 2020, Keyone Dairy had a cash balance of $9.0 million, this includes a $12.5 million capital raising back in May. During the half, the company also spent $2.25 million to acquire AusConfec assets, consisting of state-of-the-art equipment for the manufacturing of protein bars with contracts with Woolworths and Coles.

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Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In the last three weeks, the world has let out a collective sigh of relief on positive news from coronavirus vaccine trials reported by Pfizer (NYSE: PFE) and partner BioNTech (NASDAQ: BNTX), Moderna (NASDAQ: MRNA), and AstraZeneca (NASDAQ: AZN). But while the market cheered more than 90% efficacy of the first two vaccine candidates, the results from AstraZeneca’s clinical trials were met with more of a shrug. Despite the market’s reaction, I think investors have more to be excited about from the potential AstraZeneca vaccine than its efficacy data suggests. 

When effectiveness isn’t really effectiveness

With so many vaccines under development – the New York Times’ Coronavirus Vaccine Tracker lists 74 in clinical trials or approved for limited use – it can be difficult to understand what might make any one vaccine better than the others. One clear way is knowing how effective they are at preventing the disease. But as it turns out, even that can be a little misleading.

AstraZeneca and the University of Oxford’s recent announcement that their vaccine candidate had 70% overall effectiveness at preventing COVID-19 requires a little more digging. This number was generated from two arms of the vaccine trial, one that received two full doses of the vaccine a month apart, and one that initially received only a half dose. When reviewing each arm separately, it’s clear the cohort who received only half a dose initially demonstrated 90% effectiveness. That’s not too different from Moderna and Pfizer’s candidates, which showed 94.5% and 95% efficacy, respectively. 

Although the difference in efficacy could disappear with more data collection, researchers have at least two theories about why a smaller initial dose might have led to better prevention rates. First, the lower initial dose of the vaccine might just do a better job at stimulating the immune cells that create antibodies. Another theory is that the vaccine triggers an immune response to both SARS-CoV-2 and the adenovirus used to deliver the vaccine into cells. If the vaccine causes a response to the very virus used to deliver it, cutting the initial dose in half could actually allow more of the vaccine to make it into cells. This explanation is also supported by non-COVID-19 research in mice, in which a lower initial dose of a vaccine better established the memory immune cells needed when the second dose was delivered.

Why effectiveness is not the most important factor

So far the vaccines that have reported results have shown remarkable effectiveness. After all, even the arm of the AstraZeneca trial that showed poorer results demonstrated 62% effectiveness – better than most years’ versions of the flu vaccine, which range from 40% to 60% efficacy. Once you have a vaccine that is reasonably effective, other factors contribute much more to how many people end up getting vaccinated, and whether a disease can be eventually slowed or even stopped. 

How easy a drug is to manufacture and distribute, whether it causes side effects, and how it affects different groups of people are all considerations that can leave a scientific marvel stuck in the lab – or turn a drug that breaks no new ground into a widely adopted standard. Unlike the gene-based vaccines from the Pfizer-BioNTech partnership or Moderna, the AstraZeneca vaccine relies on the chimpanzee adenovirus. The former two vaccines are based on synthetic messenger RNA (mRNA) technology that has never once been used in an FDA-approved drug. The use of chimpanzee adenovirus by AstraZeneca was first published in 1984 and is now widely used as a way to deliver medicines. 

Another key element is transmission. While neither the Pfizer nor the Moderna vaccine was evaluated for the ability to limit transmission – only those with symptoms were tested – participants in the AstraZeneca trial routinely swabbed themselves whether they had symptoms or not. The data collected leads researchers to believe that the vaccine does indeed prevent transmission of COVID-19, even from those who are not showing any symptoms. Furthermore, not only did the vaccine protect people of all ages, it generated the same amount of antibodies in participants whether they were young or old – a great sign, because the disease often takes its most severe toll on the elderly. AstraZeneca also reported no serious illnesses in the 23,000 trial participants. 

The logistical challenges of manufacturing and transporting millions of doses of a vaccine might end up being the difference between a cool scientific breakthrough and ending the pandemic. While Pfizer’s vaccine must be stored at negative 94 degrees Fahrenheit – requiring a special case and dry ice to be transported – the AstraZeneca vaccine can be stored at normal refrigeration temperatures. This is even an advantage over the Moderna vaccine, which can be housed for a month at normal refrigeration temperatures but requires negative 4 degrees Fahrenheit for longer storage. Most countries either do not have the “cold-chain” capabilities to store these vaccines for very long, or their capacity is extremely limited.

The most important reasons to be excited

It may seem like all of these reasons are enough to be excited about the AstraZeneca vaccine, but I haven’t even gotten to the best parts: cost and production. While Pfizer and Moderna have agreements in place for vaccines in the range of $20 to $40 per dose, AstraZeneca has pledged not to make a profit during the pandemic. Its price, around $2.50 per dose, coupled with the less-stringent refrigeration requirements, will make vaccination much easier in countries without a wide social safety net or relatively rich population. That may not seem as important if you are sitting in front of a computer in the Western world, but in the words of one public health expert at the University of Oxford, “no one is safe until everyone is safe.”

Unlike Pfizer and Moderna, which together think they will produce enough doses for 20 million people by the end of the year, AstraZeneca plans to have 200 million doses ready by the end of 2020, 700 million by the end of the March 2021, and as many as 3 billion doses through next year. Of all the reasons to be excited about the AstraZeneca vaccine, this is my absolute favorite: production. This rate will be enough to more than satisfy the big pharma company’s agreement with the US for 300 million doses and Europe for 400 million. It isn’t clear how many doses will initially be available for Europe and the US, but ending the pandemic will mean getting a vaccine to as many people as possible. From what I can tell, AstraZeneca just took the largest leap toward that goal, despite the lackluster market reaction.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Zip Co Ltd (ASX: Z1P) share price is on the move on Monday following the release of its annual general meeting presentation.

At the time of writing, the buy now pay later provider’s shares are up 2.5% to $6.22.

What happened at the annual general meeting?

As well as providing investors with a summary of its performance in FY 2020, Zip updated the market on current trading and its expansion progress.

In case you missed it, in FY 2020 Zip delivered a 145% increase in transaction value to $3.2 billion and a 175% jump in revenue to $253 million. This was underpinned by a 120% lift in customer numbers to 4 million and a 70% increase in retail partners to 29,000.

Zip’s Chairman, Philip Crutchfield, commented: “Financial Year 2020 was another watershed year for Zip as we made specific moves to deliver on our global ambitions, expanded our offerings to small businesses and executed our plan against a backdrop of significant uncertainty.”

Mr Crutchfield has been pleased with the company’s positive start to the new financial year and believes Zip is well positioned for growth.

“The first half of this year has continued this positive momentum and we are exceptionally well placed to accelerate growth and capitalise on the opportunity to be a BNPL world leader,” he added.

Financial year to date, transaction value is up to over $4 billion on an annualised basis, with customer numbers reaching 4.8 million at the end of October. Pleasingly, management notes that the November seasonal trading period is set to be another record for the company.

UK launch.

Management also spoke about its global expansion, which was disrupted by COVID-19, and led to the delay of its UK launch.

The good news is that this launch is now happening and Zip has signed up a number of key merchants in the $600 billion market. It also has a team of 25+ on the ground in the UK to grow its pipeline and support execution at scale.

Mr Crutchfield explained: “I can report today that Zip is officially launching in the UK. We are live with over 150 merchants and will be bringing on global fashion and apparel brands, JD Sports, Boohoo, Fanatics and Fashionova as we scale in the region. As one of only a few truly global BNPL players, Zip has a huge and unique opportunity in this region.”

The chairman also touched on the company’s expansion into the small business vertical. He appears confident in this opportunity following a successful trial period.

“Extending our BNPL offering to Small and Medium Sized Enterprises (SMEs) is a natural evolution for Zip. Small businesses have the same needs, specifically the ability to easily spread the costs of a purchase over time on fair and transparent terms. The pilot we recently completed validated the market opportunity and provided key learnings that flowed through to our product development,” the chairman added.

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price has returned from its trading halt and is storming higher again on Monday.

In early trade the biopharmaceutical company’s shares are up 8% to a record high of $3.51.

Why is the Telix share price pushing higher?

This morning Telix announced that it has entered into an agreement with Scintec Diagnostics to acquire TheraPharm.

TheraPharm is a Swiss-German biotechnology company developing innovative diagnostic and therapeutic solutions in the field of hematology.

According to the release, the acquisition provides Telix with access to a portfolio of patents, technologies, production systems, clinical data, and know-how in relation to the use of Molecularly Targeted Radiation (MTR) in hematology and immunology.

Management notes that TheraPharm is developing antibody MTR technology against CD66, a cell surface target highly expressed by neutrophils and tumor-infiltrating lymphocytes.

It feels this technology has potentially very broad applications in the diagnosis and treatment of hematologic diseases (such as blood cancers), infection management, and a variety of lymphoproliferative diseases.

One area of particular interest to Telix is the demonstrated use of the technology to safely and effectively condition patients prior to bone marrow stem cell transplant.

What will this cost Telix?

Telix has agreed an upfront payment of 10.2 million euros (~A$16.5 million). This comprises 10 million euros in Telix shares and 0.2 million euros upon completion.

There are also earn-out components of up to 10 million euros subject to certain milestones and also 5% royalties on sales for three years.

Telix’s CEO, Dr. Christian Behrenbruch, commented, “Telix is committed to extending and improving the lives of patients with serious diseases. As such, the acquisition of TheraPharm and its MTR assets are uniquely aligned to Telix’s mission and technical strengths in antibody engineering and radiochemistry.”

“TheraPharm’s technology has a significant role to play in BMC and stem cell transplantation across a broad range of blood cancers and rare diseases. The current approach to BMC employs highly toxic drugs that have a poor morbidity and mortality profile, and for which many patients are ineligible. MTR offers an excellent safety profile that may greatly expand the number of patients able to undergo life prolonging stem cell transplantation while greatly reducing the hospitalisation burden and cost associated with such procedures,” he added.

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Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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