Why the Universal (ASX:UBI) share price is on the run today

The Universal Biosensors Inc. (ASX: UBI) share price is on the run today. This comes as the company's Canadian subsidiary signed a new deal.

| More on:
Young doctor raising arms in air with hands in fists celebrating a new development

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Universal Biosensors Inc. (ASX: UBI) shares are on the run today. This comes as the company's Canadian subsidiary signed a new deal. The news has sent the Universal share price 4.5% higher to 46 cents.

What's driving the Universal share price higher?

The Universal share price is surging higher today after the medical diagnostics company announced its Canadian subsidiary, Hemostasis Reference Laboratory Inc (HRL), has signed a new deal with Bayer AG.

HRL provides laboratory testing services in the areas of coagulation. The company performs clinical trials, research studies, and compound analysis, as well as validation testing on equipment. HRL assists global diagnostic manufacturers, pharmaceutical and clinical researchers, and contract research organisations.

According to its release, Universal advised that the agreement will see its laboratory business provide specific services to Bayer, "relating to the performances of laboratory analysis of biological samples."

Management did not state the length of the contract, but did say it will be for an agreed period of time. HRL estimates the new partnership will generate CAD$1.3 million in additional revenue.

What did the CEO say?

Universal CEO Mr John Sharman commented on the strategic partnership, saying:

HRL is our laboratory service business in Canada and is an important asset in our blood testing business. We are looking to grow HRL and expand the client base over time. The contract with Bayer is a significant first step and we expect to be in a position to announce additional contracts with other customers over the course of the next six months.

How has the Universal share price performed in 2020?

This Universal share price has had a stellar year, gaining close to 150% over the past 12 months. The company's shares fell to an all-time low of 13 cents in March, before quickly rebounding.

Earlier this month, the Universal share price reached a multi-year high of 50 cents after the company announced its distribution agreement with Grapeworks.

Based on current share price levels, the company commands a market capitalisation of around $78 million.

Should you invest $1,000 in Universal Biosensors, Inc. right now?

Before you buy Universal Biosensors, Inc. shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Universal Biosensors, Inc. wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Excited couple celebrating success while looking at smartphone.
Broker Notes

Bell Potter names the best ASX 200 stocks to buy in May

The broker is feeling bullish on these names this month. Let's find out why.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Opinions

Investing in high-yield ASX stocks has two major negatives

High-yield stocks do have downsides.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »