Athersys (ATHX) Stock: On Expanded Collaboration

Athersys ATHX Stock NewsAthersys, Inc. (NASDAQ: ATHX) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced news surrounding an expanded collaboration surrounding a key product. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from ATHX, and what we’ll be watching for ahead.

ATHX Announces Expanded Collaboration 

As mentioned above, Athersys is having an incredibly strong start to the trading session this morning after the company announced an expansion of a current commercialization collaboration. In a press release issued early this morning, the company announced that it will significantly expand its collaboration with HEALIOS K.K. surrounding MultiStem®.

In the release, ATHX said that Healios is making an equity investment of approximately $21 million at $1.76 per share. The company has also agreed to deposit $10 million in escrow and has entered into a letter of intent with ATHX to expand the existing license to develop MultiStem® products for indications including acute respiratory distress syndrome and trauma in Japan. Healios will also be moving forward with an exclusive option to a license to develop and commercialize MultiStem products for ischemic stroke, ARDS and trauma in China.  In exchange for these rights, Athersys would receive committed payments of $35 million, as well as additional payments, including milestones and royalties. In a statement, Dr. Gil Van Bokkelen, CEO at ATHX, had the following to offer:

This is a significant opportunity for both Healios and Athersys… It provides for a meaningful expansion of the existing partnership, providing a much broader scope of rights for Healios, while providing Athersys with substantial additional capital and a committed development partner in key areas. 

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news surrounding Athersys proved to be overwhelmingly positive. Not only will this expanded collaboration lead to an immediate equity investment, it also has the potential to lead to substantial revenue opportunities down the line. So, it’s no surprise to see that the stock is running for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:26), ATHX is trading at $1.83 per share after a gain of $0.27 per share or 17.37% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on ATHX. In particular, we’re interested in following the story surrounding this collaboration and MultiStem. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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