Genus PLC (LSE:GNS) shares jumped 24% on Wednesday after the US Food and Drug Administration approved its gene-edited PRRS-resistant pigs for use in the American food chain, a decision analysts at Panmure Liberum called a “hugely significant landmark”.
The move marks the first regulatory green light for a breakthrough genetic edit that aims to protect pigs from porcine reproductive and respiratory syndrome (PRRS), one of the most damaging diseases in global pork production.
While the stock has been under pressure in recent months, Panmure said today’s news should shift sentiment, calling it “a significant step in the right direction.”
The approval offers crucial validation of Genus’ platform and is likely to smooth the path to approval in key export markets such as Canada, Mexico and Japan.
Panmure values the PRP opportunity alone at 1,100p per share, yet believes the market has so far priced in little or no value for it. The broker remains a buyer, with a 2,800p target.
In afternoon trading, the shares were up 381.56p at 1,967.56p.