Itaconix PLC (LON:ITX) shares jumped in mid-afternoon trading Wednesday after it signed a licence agreement with Canadian firm New Wave Global Services Inc to develop a non-phosphate dishwasher detergent formula.
The speciality plastics manufacturer said the formula, based on its water-soluble CHT polymer, would be used by New Wave to produce and market a new triple-chamber automatic dishwasher (ADW) detergent sachet for North American retailers in the private label market.
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As part of the deal, Itaconix had developed a new proprietary formula for New Wave’s exclusive use and would receive revenues from the formula through the sale of its polymer to produce the detergent.
New Wave is a private developer and supplier of private label brands for major retailers across North America and Europe with manufacturing plants in Canada and the USA.
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Itaconix has seen a boost to its sales from its detergent polymers in recent months, with its first-half sales lifted by a fifth compared to the second half of the previous year.
John R. Shaw, chief executive of Itaconix, said the use of the company’s CHT polymer by New Wave represented “significant potential new revenues”, supporting the company’s forecasts for “2019 and beyond”.
Shares were up 4.9% at 5.3p.
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