CASI Pharmaceuticals Inc (NASDAQ: CASI) is having a great start to the trading session in the pre-market hours, and for good reason. The company announced that it has entered into a strategic agreement that seems to be the source of the investor excitement. Today, we’ll talk about:
- The agreement;
- what we’re seeing from CASI as a result; and
- what we’ll be watching for ahead.
CASI Rockets On Agreement
As mentioned above, CASI Pharmaceuticals is having an incredibly strong start to the trading session this morning after announcing that it has entered into an agreement. In a press release issued early this morning, the company announced that it has entered into a long-term manufacturing agreement with Yiling Wanzhou International Pharmaceutical Co., Ltd. The agreement specifically surrounds the manufacturing of entecavir and cilostazol.
In the release, CASI announced that the contracted manufacturing facilities have been inspected by both, the United States Food and Drug Administration (FDA), and the China FDA (CFDA). The treatments involved in this agreement, Entacivir and cilostazol are part of 29 abbreviated new drug applications (ANDAs) that were acquired by CASI through the acquisition of Sandoz in January of this year. In a statement, Ken K. Ren, Ph.D., CEO at CASI, had the following to offer:
We are very pleased to partner with Yiling Wanzhou International as our manufacturing site for entecavir and cilostazol. Through this partnership, we will leverage Yiling’s manufacturing knowledge and capabilities in order to provide high quality, cost-effective medicines that are critically needed for patients both in China and the U.S.
This partnership further supports the overarching vision of CASI to bring much needed medicines from the U.S. into China as well as cost-effective drugs from China to the U.S. This would also be the first step for CASI to execute on our overall development plan for the acquired ANDAs with additional development activities and partnering discussions underway.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of CASI, the news proved to be overwhelmingly positive. With the selection of the manufacturer for these two treatments, CASI Pharmaceuticals is now one step closer to commercialization of them both in the United States and China. So, it’s no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:17), CASI is trading at $7.70 per share after a gain of $2.00 per share or 35.09% 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 CASI. In particular, we’re interested in following the story surrounding the company’s newly minted contract with Yiling Wanzhou and the commercialization of entecavir and cilostazol in the US and China. Nonetheless, we’ll continue to follow the story closley and bring the news to you as it breaks!
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