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A tick-targeting insecticide “derived from nature” that has in early stage lab testing shown to be a promising agent with which to kill lyme disease vector Ixodes scapularis, a type of tick; this positive data leading insecticide player Bio-Gene Technology (ASX:BGT) to confirm the potential for use of its flagship product in hospitals and on farms.
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That was all it took on Tuesday for BGT shares to spike nearly +60% somewhat out of the blue in lunchtime trades; the latest biotech to demonstrate pronounced volatility after 4DX Medical remains in the memory of day-in-day-out swing traders. While liquidity for BGT was lower at only $660K (a/a 12.30pm), the stock price move shows a market hungry for undervalued juniors onto something big.
And what could be big, here, at least refined through the clarity of a risk-on mind, is not Bio-Gene itself but, of course, its flagship drug in question, Flavocide.
The patented molecule is a “nature-identical beta-triketone molecule produced synthetically by a chemical process,” which the company describes as useful against a range of pests.
Clearly, ticks being included under that umbrella hasn’t hurt investor psychology, evidenced perhaps by what few HotCopper users commenting on BGT’s Tuesday news being of largely positive mind about the update. So what of the actual results themselves? There, the company summarised:
“Laboratory studies [showed] that Flavocide formulated in a prototype emulsion in water formulation achieved greater than 90% mortality of Ixodes scapularis nymphs within 24 hours of exposure, validating its acaricidal potential.”
“The research was conducted using a novel test arena, ‘Phenocosm’ tick assay system that is designed to simulate natural tick habitats such as mulch, leaf litter, and turfgrass. These studies confirm that Flavocide has potential utility in addressing tick-borne diseases of major concern in the United States and globally.”
BGT last traded at 5cps.
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