Terragen Holdings reports robust quarterly progress, highlighted by successful beef feedlot trials and a $4.76 million equity raise, setting the stage for its new probiotic product launch in March 2025.
- Beef feedlot trial shows 4.6% increase in average daily weight gain
- New dry format probiotic product launch scheduled for March 2025
- Completed $4.76 million equity raising to fund commercialisation
- Three scientific papers published validating probiotic benefits
- Pre-launch sales campaigns underway with distribution agreements in progress
Strong Trial Outcomes Bolster Product Confidence
Terragen Holdings Limited has delivered a compelling update for the quarter ending 31 December 2024, underscoring significant advancements in its ruminant probiotic development. The company’s beef feedlot trial, involving 264 Angus steers at Charles Sturt University, demonstrated a 4.6% increase in average daily weight gain, translating to a $57 uplift per carcass and an impressive 4.73x return on investment over 110 days. Additionally, the trial revealed a 12.8% improvement in feed conversion ratio and a 7% enhancement in marble score compared to controls, reinforcing the product’s value proposition for beef producers.
Scientific Validation and Research Momentum
Complementing these commercial results, Terragen saw three peer-reviewed scientific papers published in respected journals including Animals and The Journal of Dairy Science. These studies further validate the probiotic’s positive impact on ruminant health and performance, strengthening the company’s scientific foundation as it prepares for broader market entry.
Commercialisation and Market Preparation
With the new dry format Terragen Probiotic for Ruminants slated for launch in March 2025, the company has finalized its sales and distribution strategy. This includes market segmentation, pricing aligned with production costs and competitors, and multi-channel distribution plans spanning retail, wholesale, and direct sales. Pre-launch campaigns have commenced, targeting existing retailer networks to secure early demand. Concurrently, commercial trials with prominent agri-businesses and feedlots continue, providing further market validation.
Operational and Financial Strength
Terragen’s recent $4.76 million equity raising, well supported by institutional and retail investors as well as board and management, enhances its financial runway. The funds will accelerate product validation, diversify the product range, and support global commercialisation efforts. At quarter-end, the company held $6.2 million in cash reserves, bolstered by the FY24 R&D tax incentive and equity proceeds. Procurement contracts with Italian and Australian manufacturers are in place to ensure timely production for the upcoming launch.
Looking Ahead
Terragen’s strategic focus on scientific validation and global market expansion positions it well to capitalise on growing demand for sustainable agricultural inputs. The upcoming product launch will be a critical milestone, with early sales traction and distribution partnerships likely to influence investor sentiment and market positioning.
Bottom Line?
Terragen’s robust trial data and fresh capital set a promising stage for its probiotic’s market debut, but commercial uptake will be the true test.
Questions in the middle?
- How will the new dry format probiotic perform in large-scale commercial settings post-launch?
- What are the timelines and targets for global distribution agreements beyond Australia and New Zealand?
- Will further research expand the probiotic’s applications or product portfolio?