Evolva shares jump 8 percent on L'Oreal research deal

ZURICH Mon Feb 10, 2014 3:46am EST

ZURICH Feb 10 (Reuters) - Shares in Evolva jumped more than 8 percent on Monday after the Swiss ingredients maker said it had signed a research collaboration agreement with French cosmetics maker L'O'real.

Evolva said it was teaming up with L'Oreal to use its fermentation technology to develop yeast strains that can be used in an undisclosed cosmetic ingredient.

The company said the collaboration would start immediately and last until late 2016 and included an option to expand into other ingredients.

Evolva gave no financial details about the collaboration, but said it would receive research fees from L'Oreal and would also be eligible for milestone payments if it achieves certain research agreements.

"These type of deals underline Evolva's offering in the area of novel micro-organism based manufacturing outside the drug industry," said Vontobel analyst Andrew Weiss, who has a "buy" rating on the stock. "Evolva is gaining a strong foothold in the area of cosmetics by tying up with L'Oreal."

Shares in Evolva were trading up 8.2 percent at 1.45 Swiss francs per share by 0815 GMT, having earlier hit 1.47 francs. (Reporting by Caroline Copley; Editing by David Holmes)