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Genus PLC on Thursday reported an increase in annual earnings and said it is forming a porcine joint venture in China alongside existing partner Beijing Capital Agribusiness Co Ltd. Genus shares jumped 10% to 2,745.00 pence each in London on Thursday morning. The JV will be 51%-owned by BCA and 49%-owned by Genus. Animal biotechnology and genetics company Genus said it will receive $160 million cash as part of the deal and there is a $7.5 million milestone also, upon Chinese regulatory backing of the joint-venture’s formation. The deal’s structure will see BCA acquire 51% of PIC China, a Genus business. PIC China will acquire 100% of BCA’s Future Bio-Tech business. ‘Following completion of the transaction, PIC China will be deconsolidated from Genus’s financial results and Genus’s 49% interest in the joint venture will be equity accounted. Proceeds from the transaction are currently expected to be used for balance sheet deleveraging and potential additional shareholder returns, in line with the Genus’s capital allocation framework,’ Genus said. The company has an existing collaboration with BCA. The original pact between the duo was for the research and development of porcine reproductive and respiratory syndrome virus-resistant pig in China. ‘Given the positive progress made to date, the parties have entered into updated agreements to accelerate the formation of this Chinese joint venture. This cements Genus’s and BCA’s commitment to strengthening PIC China’s local business and achieving PRP commercialisation in China, as a domestic partner collaboration,’ Genus explained. ‘The updated agreements accelerate value crystallisation for Genus whilst retaining future economic rights that are consistent with the original agreements.’ Genus hailed ‘good second half momentum’ that boosted annual earnings. Pretax profit in the year ended June 30 jumped to £28.5 million from £5.5 million. Revenue was 0.6% higher at £672.8 million from £668.8 million. ‘Genus achieved a strong performance in FY25 as we executed our strategic priorities. PIC’s growth was broad-based and the business won significant new royalty customers in China,’ Chief Executive Officer Jorgen Kokke said. ‘We look forward to FY26 with increasing confidence and will continue to focus on executing our strategic priorities.’ Adjusted pretax profit for the year rose 24% to £74.3 million from £59.8 million. It rose 38% at constant currency. For the new year, it expects ‘significant growth’ in adjusted pretax profit at constant currency, in line with current market expectations, which it puts at £79.0 million. Genus left its final dividend unchanged at 21.7 pence per share, leaving its total dividend unmoved at 32.0p. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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