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Agronomics (LSE: ANIC) is a penny inventory on the transfer — it’s up 23.3% in only a month. Which means anybody who put 5 grand into Agronomics shares in mid-June would now be sitting on £6,165.
However had an investor bagged this one at slightly below 4p at the beginning of 2025, they might have accomplished even higher. Yr so far, the inventory has rocketed 138% to 9p!
Science truth
For these questioning, Agronomics is the backer of 20+ venture-stage firms aiming to commercialise lab-grown meat. These start-ups are harnessing revolutionary applied sciences to provide cell-cultivated meat, milk, eggs, and extra.
In different phrases, merchandise that take away the necessity to farm livestock and slaughter animals. As a substitute, animal cells are grown in a lab or bioreactor.
Whereas that may sound like one thing out of Frankenstein, this isn’t science fiction. Certainly, it’s quick turning into science truth.
Take BlueNalu, for instance, which is one in all Agronomics’ portfolio bets. This can be a US-based agency pioneering cell-cultivated seafood. Its first product is bluefin tuna, which is without doubt one of the world’s most overfished species.
The corporate grows the seafood in bioreactors, cell by cell. Meaning no heads, tails, bones, or microplastics — simply pure fillets.
Once more, this isn’t simply pie-in-the-sky stuff. BlueNalu has expanded a take care of Nomad Meals, the frozen meals agency behind Birds Eye and Findus, to assist the longer term commercialisation of its seafood merchandise within the UK and Europe.
In keeping with a survey sponsored by BlueNalu, 92% of two,000 frequent sushi eaters within the UK expressed curiosity in making an attempt the product. If BlueNalu achieves regulatory approval and business rollout, the worth of Agronomics’ funding might soar.
One other agency backed by Agronomics — referred to as Meatly — has reduce bioreactor prices by 95%. This strikes its cultivated pet meals, which was launched in Pets at House in February, nearer to cost parity with typical hen.
Frankenfood fears
It’s difficult to place a valuation on Agronomics. A lot of the firms it holds are nonetheless making their method in direction of commercialisation.
However in March, Agronomics’ internet asset worth (NAV) was calculated at 14.93p. With the shares now at 9p, this means a NAV low cost of about 40%. On this foundation, the shares are nonetheless undervalued, regardless of doubling this 12 months.
Nevertheless, it’s vital to know that it is a high-risk inventory. A few of these companies might go bust attributable to a scarcity of funding or a failure to efficiently launch merchandise.
Additionally, there could be a backlash in opposition to lab-grown meat. The Trump administration might make US regulatory approvals and funding harder.
Furthermore, the US meat business and agribusiness teams are clearly going to place up a battle. I anticipate to see loads many ‘Frankenfood’ posts and headlines over the following few years.
Adventurous
Nonetheless, this know-how is probably revolutionary. As Agronomics argues, “We’re on the cusp of the deepest, quickest, most consequential disruption in meals and agricultural manufacturing because the first domestication of crops and animals 10,000 years in the past.”
Given the truth that Agronomics invested in these start-ups on the floor flooring stage, the returns could possibly be monumental if a few them reach future. However that’s not assured.
Subsequently, that is the very definition of a high-risk, high-reward penny inventory. Solely essentially the most adventurous buyers ought to take into account it.
