Zoono signs distribution deal to supply antimicrobial products to Chinese markets

Zoono China Coronavirus ASX ZNO childcare hotel distribution agreement
Zoono has received an initial payment of NZ$775,000 (A$743,442) from Beijing Youmeng Technology and Development.

Global biotech company Zoono Group (ASX: ZNO) has signed a five-year distribution agreement with Beijing Youmeng Technology and Development Limited for the supply of antimicrobial skin and surface sprays to China’s childcare and hotel sectors.

Following last month’s outbreak of novel coronavirus 2019-nCoV, Zoono said there has been “unprecedented interest” in its technology given its proven efficacy against viruses and bacteria and ability to prevent cross-contamination.

Under the new deal, Zoono will supply its products exclusively to all childcare and hotel markets in China, with required minimum purchase volumes of $1.44 million in the first 18 months, $2.21 million in the second year, and $2.88 million in the third.

In the last two years of the agreement, minimum purchase volumes will increase by 10% per annum.

Zoono said it had already received an initial payment of $743,442 from Beijing Youmeng.

Fighting the virus

Zoono produces skincare sprays, wipes and foams; surface sanitisers; and mould remediation treatments based on the ‘zoono molecule’ – a unique antimicrobial molecule which bonds to surfaces and kills pathogens including bacteria, viruses, algae, fungi and mould.

The company is confident it can help fight the outbreak of coronavirus 2019-nCoV and has received an inundated number of enquiries for its products.

“Given successful test results in 2014 [against bovine coronavirus], Zoono is very confident that [our] products will have a level of efficacy against the current strain of the coronavirus similar to that achieved previously,” the company stated.

Reputable distributors

The distribution agreement with Beijing Youmeng is the fourth of its kind for Zoono in a Chinese industry sector in the last six months.

It is another step in the company’s strategy to focus on specific market segments and on the appointment of “reputable distributors with explicit expertise”.

“We have sought to exercise greater control over the activities and performance of [our] distributors in new distribution arrangements, particularly with respect to pricing, marketing strategies, minimum sales performance, adherence to service and delivery standards and protection of [our] intellectual property and brand,” the company said.