IsoRay, Inc. (NYSEAMERICAN: ISR) is having an overwhelmingly strong day in the market today, and for good reason. The company announced that it has entered into a manufacturing and supply agreement surrounding Cesium-131. Today, we’ll talk about the agreement, what we’re seeing from the stock, and what we’ll be watching for ahead.
ISR Enters Manufacturing And Supply Agreement
As mentioned above, IsoRay is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it has entered into an exclusive manufacturing and supply agreement with GT Medical Technologies, Inc. The agreement surrounds Cesium-131 seeds embedded in collagen tiles. In the press release, ISR said that the agreement comes with a term of 10 years.
According to the agreement, ISR will exclusively manufacture and supply GammaTileTM, a brachytherapy product that incorporates the company’s proprietary Cesium-131 seeds within customizable carriers. These carriers are configured as squares or rectangles and are used for the treatment of brain tumors.
This agreement is the second agreement signed with GT Medical Technologies. The first of these agreements was signed in early 2017, under which the two companies agreed to equally share costs as they worked together on refining GammaTile’s manufacturing progress, as well as work together to achieve regulatory clearance and obtain reimbursement from the Centers for Medicare and Medicaid Services (CMS) for the GammaTile product. In a statement, Thomas LaVoy, Chairman and CEO at IsoRay, had the following to offer.
“This supply agreement is an important step on the path to commercialization of the novel GammaTile product… As we’ve previously discussed, we project potential 510(k) clearance and reimbursement approval of GammaTile in 2018. GammaTile leverages Cesium-131’s unique ability to deliver a highly targeted dose of intense radiation treatment while limiting the radiation exposure to surrounding tissue. Upon FDA clearance, this will be an important new treatment option for patients with recurrent brain tumors, a large unmet clinical need.”
The above statement was followed up by Matthew E. Likens, President and CEO at GT Medical Technologies. Here’s what he had to say about the agreement with ISR:
“GT Medical Technologies is excited to be working with IsoRay in our efforts to improve the lives of patients with brain tumors… Over 100 patients with recurrent brain tumors have been treated in IRB approved study at the Barrow Neurological Institute as our founding group of clinicians have developed this new therapeutic approach. Thus far, our results are encouraging and the goal is to expand access for patients to this promising therapy upon regulatory clearance and commercial launch.”
What We’re Seeing From The Stock
As investors, one of the first things that we learn is that the news moves the market. Any time news is released with regard to a publicly-traded company, we can expect movement as investors react. In this particular case, the news surrounding IsoRay proved to be overwhelmingly positive. As a result, we’re seeing a strong reaction in the market. At the moment (8:31), ISR is trading at $0.50 per share after a gain of $0.09 per share (21.95%) thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What we’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ISR. In particular, we’re interested in following the story surrounding GammaTile as well as the use of Cesium-131 in various oncology treatments. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!