Bioxyne Limited (ASX:BXN) Signs Exclusive $7M Agreement with NectarTek
Manufacturing Agreement
Bioxyne Limited (ASX:BXN) has entered into an exclusive $7 million manufacturing and supply agreement with NectarTek Australia Pty Ltd. Breathe Life Sciences (BLS), a subsidiary of Bioxyne, will produce all NectarTek products for distribution in Australia, the UK, and Germany. The agreement encompasses minimum order volumes of $3.6 million for pastilles, $2.5 million for packed flower products, $0.5 million for vapes, and $0.5 million for oral mucosal oils and other products.
Financial Impact
The $7 million commitment for FY2026 marks a 200% increase over expected FY2025 revenues from NectarTek. Bioxyne anticipates that actual order volumes may surpass these minimum commitments, contributing to significant revenue growth.
Future Outlook
Bioxyne aims to secure additional long-term contracts following an expansion in manufacturing capacity across all product categories, with the potential to generate over $100 million annually.
Executive Comments
Sam Watson, Bioxyne CEO, stated, “This agreement with NectarTek underscores market trust in BLS and our ability to deliver value to industry partners, clients, and stakeholders. Exclusivity is a privilege we have earned by consistently delivering results and supporting our clients’ growth. BLS is Australia’s leading manufacturer of alternative pharmaceuticals and continues to strengthen its position. We are excited about this collaboration’s future, particularly as we expand into the UK and Germany in the coming months.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.