(Reuters) -Shares of British animal genetics firm Genus shot up nearly 29% on Thursday, after it reported a 38% rise in annual adjusted pretax profit and signed a revised agreement to speed up the formation its China joint venture.
Genus first partnered with Beijing Capital Agribusiness Co. Ltd (BCA) in 2019 to jointly market pigs resistant to the Porcine Reproductive and Respiratory Syndrome (PRRS) virus in China
Under the revised deal, BCA will acquire a 51% stake in Genus’s Pig Improvement Company (PIC) unit in China.
In turn, PIC will take ownership of BCA’s Future Bio-Tech business, tasked with securing regulatory approval for the gene-edited pigs in the country.
The company’s shares, which hit a more than two-and-a-half-year high earlier in the day, gained 12% to 2,800 pence as of 0823 GMT.
The accelerated JV formation positions Genus to deepen its footprint in China, the world’s largest pork market, as U.S. exporters face mounting tariff pressures.
Peel Hunt analysts said there is “lots to like” in Genus, citing its strong profit and strong cash position, and added that the company will benefit from the JV.
Genus, which operates in over 24 countries, reported adjusted pretax profit rose to 74.3 million pounds ($100.37 million) for the twelve months ended June 30, a 38% rise on a constant currency basis, driven by PIC growth in North America and Asia.
($1 = 0.7402 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
