UK’s Genus secures FDA approval for PRP gene edit; shares soar

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By Chandini Monnappa

(Reuters) -British animal genetics company Genus on Wednesday said the U.S. Food and Drug Administration (FDA) approved its PRP gene edit under its PRRS Resistant Pig (“PRP”) programme for use in the U.S. food supply chain.

The gene edit is designed to provide pigs resistance to porcine reproductive and respiratory syndrome (PRRS), a disease affecting swine globally, whose symptoms include fever, respiratory distress, premature births.

PRRS caused an estimated $1.2 billion per year in lost production in the U.S. pork industry from 2016 to 2020, an 80% increase from a decade earlier, according to an analysis published in 2024 by an Iowa State University expert.

In its capital market update in November 2023, Genus had said that its PRP is resistant to prevalent PRRS strains.

Genus’ shares rose as much as 30% to a near six-month high, and were on track for their biggest one-day gain since December 2008.

PRP won’t really start affecting Genus’ income statement until fiscal year 2027, but it could supercharge growth from then on, said Seb Jantet, research analyst at Panmure Liberum.

As the U.S. is a net exporter of pork, the main issue for Genus is reciprocal tariffs which could reduce the ability of U.S. producers to export pork to Japan, Canada and Mexico, the brokerage said in the note.

However, the company will “most likely be fine” as these countries are likely to turn to Brazil for supply, where it has a bigger market share than in the U.S., Panmure Liberum said.

The company said the approval was a significant step towards PRP commercialisation in the U.S and added that it continues to make progress to secure approvals from regulators in Mexico, Canada, Japan and China.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Varun H K)