Itaconix leaps on second Nouryon supply agreement

28th Feb 2019 12:02

(Sharecast News) - Itaconix's shares soared on Thursday after the business signed a supply agreement for its bio-based polymers with chemical firm Nouryon.Under the terms of the deal, Itaconix will produce and supply certain proprietary polymers that Nouryon will market to its customers in personal care applications, though the agreement does not include Itaconix's polymers for odour control.John Shaw, chief executive of Itaconix, said: "This agreement is another major step towards increasing our revenue growth by accessing more customer opportunities through worldwide leaders in key application areas. As we commercialize our deep pipeline of proprietary itaconate chemistries, we are moving faster to identify new uses for our polymers, generate initial demand and prove customer value through our direct selling efforts, and then gain commitments from market leaders to create worldwide revenue potential."The AIM traded company's polymers are used in hair care, skin care, body wash, sun care, and cosmetics.It is the second supply agreement resulting from a joint development agreement signed by the companies in 2017 to explore opportunities for polymers made from using Itaconix's technology, with the companies having a supply agreement earlier this year for polymers with chelating properties that Nouryon will market to customers in the detergents market.Peter Nieuwenhuizen, chief technology officer at Nouryon, said: "Our two supply agreements demonstrate the success and value of our joint efforts with Itaconix to deliver new and better solutions to our customers. We see that Itaconix polymers can complement our product range through their unique hybrid properties, straddling dispersion, film formation, chelation, scale inhibition, and rheology modification."Itaconix's shares were up 34.16% at 3.42p at 1220 GMT.