TFS shares rise after naming pharma customer

The Western Australian company that is the world’s only supplier of pharmaceutical grade sandalwood oil has revealed a landmark deal it struck earlier this year was with global dermatology company Galderma.

Shares in sandalwood producer TFS Corporation rose today after it confirmed its global pharmaceuticals partner was Galderma.

In February, the WA-based business, which is the world’s largest owner and manager of sustainable sandalwood plantations, signed a landmark deal with the then-unnamed customer to supply pharmaceutical grade oil at a price of $US4,500 per kilogram.

To date, Galderma has ordered 470kg worth $2.3 million for use in commercial scale production trials for skin products due to launch in the US later this year.

Galderma is 100 per cent owned by Nestlé, and TFS said it had the potential to consumer a large proportion of its oil over the long term.

TFS shares leapt 7.97 per cent at 2.15pm WST today to $1.965.