Avivagen makes first OxC-beta sale, change to board

2016-10-27 09:22 ET - News Release

Mr. Cameron Groome reports
AVIVAGEN INC. ANNOUNCES INITIAL INDUSTRIAL SALE OF OXC-BETA(TM) LIVESTOCK AND A CHANGE TO ITS BOARD OF DIRECTORS
Avivagen Inc. has made the first industrial-scale sale of its OxC-beta livestock to the feed industry and a change to the composition of its board of directors.

The order is an initial purchase from UNAHCO Inc. in the Philippines and is for 150 kilograms of OxC-beta livestock 10-per-cent premix at pricing in line with Avivagen's target. The order will supplement approximately 7.5 million kilograms of UNAHCO-branded commercial feed, an amount sufficient for about three million broiler chickens (full grow) or 350,000 piglets (first month postweaning). Avivagen anticipates further orders from UNAHCO, which should escalate as UNAHCO begins to use OxC-beta in additional lines of complete feeds and in feed premixes. Graham Burton, co-founder of Avivagen and its director of commercialization science, commented about the sale: "We're delighted about our product being incorporated into a commercially available livestock feed for the first time. We believe that this acceptance by industry is an important next step towards widespread use of OxC-beta as a replacement for antibiotic feed additives. It is also the gratifying result of many years of hard work by Avivagen and our collaborators, and we thank everyone who has participated in such efforts."

Cameron Groome, Avivagen's chief executive officer, stated: "The Philippines distribution agreement and related sale confirms our strategy of first concentrating on Asia -- as both the largest regional market, and because of its receptive regulatory regimes and clients. We now intend to follow through with further targeted commercialization initiatives in Asia and other important regions." UNAHCO is the exclusive distributor for Avivagen's OxC-beta livestock in the Philippines, where it is now registered for use in all food animal species. The Philippines is an important feed market, with annual production of feed estimated at 13 million metric tons per year. The most important commercial livestock species in the Philippines are swine, with production of approximately 2.1 million metric tons per year, and broiler poultry, with production of approximately 1.7 million metric tons per year. Compared with Canada, the Philippines produces about the same amount of pork and 1.5 times as much broiler chicken.

Avivagen also announces the resignation of David G.P. Allan from its board of directors. Board chair G.F. Kym Anthony commented: "The board and management of Avivagen thank David for his significant contributions to Avivagen. His experience in both the financial and life sciences sectors was invaluable in developing Avivagen's strategies as a company commercializing products intended to replace the antibiotics added to livestock feeds. We wish him well as he devotes his time to his numerous other business enterprises."

Avivagen is a life sciences company commercializing products to replace the antibiotics used in livestock feeds, initially concentrating on the two largest feed segments -- swine and broiler poultry.
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