Zomedica (NYSEMKT:ZOM) stock is on the rise Wednesday after the company signed a strategic restructuring agreement with Qorvo Biotechnologies.
This has to do with the licensing agreement concerning the TRUFORMA line of products. Under this new agreement, Zomedica is taking over the development and manufacturing of those products.
Qorvo Biotechnologies was previously handling the development of new assays, as well as the manufacturing of instruments and assay cartridges. With this new agreement, Zomedica is taking over these processes.
Why Is This Good for ZOM Stock?
Zomedica notes that it expects to benefit from the change by reducing its assay development and manufacturing costs. The company also expects the move to improve margins once manufacturing of new assays begins.
Larry Heaton, CEO of Zomedica, said the following about the news:
‘These strategic agreements highlight Zomedica’s continuing commitment to working with industry partners in flexible ways to bring innovative products to veterinarians that provide clinical value and enhanced practice economics, to the animal health industry.”
Today’s news brings with it heavy trading of ZOM stock. As of this writing, more than 10 million shares have changed hands. For comparison, the company’s daily average trading volume is around 8.9 million shares.
ZOM stock is up 10.4% as of Wednesday morning.
Investors looking for all of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Wednesday. Among that is what has shares of Moderna (NASDAQ:MRNA), Bluebird Bio (NASDAQ:BLUE) and Arcimoto (NASDAQ:FUV) stock in the news today. You can read up on that below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.