Shares in Eco Animal Health Group Plc (AIM:EAH, FRA:LWA), the AIM-listed veterinary pharmaceuticals group, rose 7% to 102.49p after the United States Department of Agriculture (USDA) issued a favourable safety assessment for its live poultry vaccine, ECOVAXXIN MG.
The vaccine targets Mycoplasma gallisepticum, a bacterial infection that causes respiratory disease in poultry and is a significant source of economic loss in the global chicken and turkey industries.
The USDA assessment confirmed the vaccine was safe for both target and non-target avian species and showed no reversion or increase in virulence after passage through chickens, demonstrating its stability.
The clearance represents a further step towards full US marketing authorisation, with the final regulatory submission expected in late 2027.
Cavendish, the company's broker, reiterated its 'buy' recommendation and 150p target price following the announcement, saying the update was consistent with its existing investment thesis, which it noted was based on conservative assumptions regarding the vaccine pipeline.
ECO Animal Health has a market capitalisation of approximately £64.7 million at the current share price, against an enterprise value of £43.2 million, reflecting a net cash position on the balance sheet.