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Stocks Genus (LSE: GNS) Today (April 30) 27% jumps so easily FTSE 250Daily Leaderboard. This UK stock has been on my radar for a while, so I expect it to be a high potential movement.
Back in September, I write:I put it on my watchlist and keep an eye on gene-edited pigs. It could be a game changer for the growth of the global pork industry and company. ”
Gene editing pigs? As strange as it sounds, that’s actually the reason for today’s massive stock price rise. Let’s dig into some details.
What is a genus?
First, there is a small background information about the genus. It is an animal genetics company that helps farmers grow faster, stay healthier and breed pigs and cows that produce better meat. We operate primarily royalty-based models.
The genus pig divisions known as Pig Improvement Company (PIC) provide pig farmers with excellent breeding stock and semen. Its cow unit, known as ABS (Animal Breeding Services), has access to elite bull semen and embryos to dairy and beef breeders.
The company’s competitiveness comes from the ownership and management of its own lines of breeding animals and the biotechnology used to improve them. This last bit supports the rise in stock prices today.
Big breakthrough
For many, gene editing still sounds like technology in the middle of pigs, but it is beginning to have real impact. By altering the CD163 gene, the genera withstanded resistance to pig reproductive syndrome (PRR).
This is a highly contagious viral disease, causing widespread losses to pig farmers around the world. Recent studies have shown that PRR increases the need for antibiotics by more than 200%. Therefore, gene-edited pig lines that resist this disease should enjoy considerable demand.
Today, the company announced that the US Food and Drug Administration (FDA) has approved the PRRS-resistant Pig (PRP) program for use with the American Food Supply Chain. PRP meat is the same as unedited pigs. Therefore, this is an important development.
Brazil, Colombia and the Dominican Republic have already issued positive decisions against the PRP. More regulatory approval should continue as the FDA gave nods, including major US export markets for pork in Mexico, Canada and Japan.
Matt Culbertson, Chief Operating Officer of PIC, said:We have conducted extensive research over the years, examined the findings and worked with the FDA to obtain approval. Today is a major milestone for the pork industry. ”
Should I invest?
Now, this is exciting, but analysts don’t expect the program to bring home bacon until fiscal year 27 (starting July 2026).
However, profits could surge after that, and China is expected to receive approval at some point. On Investor Day in 2023, the genus PRP was “Economically transformative“.
If so, the seemingly high positive price-to-return ratio of today’s 24 stocks might look cheap in a few years.
In the meantime, there are a few risks to consider. One is expected to have slow topline growth, with annual revenues expected to reach just 1%. The other is mutual tariffs, which could affect US pork exporters.
But, in balance, this stock appears to me underestimate it, taking into account the possibilities here. Assuming the genus does not surge in the next few days, I might buy some stocks. But I go to the whole pig and don’t bet on the farm.
