Cesca Therapeutics Inc (NASDAQ: KOOL) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced news from its subsidiary that’s leading to excitement among investors. Today, we’ll talk about that news, what we’re seeing from the stock, and what we’ll be watching for with regard to KOOL ahead.
KOOL Announces CDMO News
As mentioned above, Cesca Therapeutics is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. In a press release issued early this morning, the company announced that its subsidiary, ThermoGenesis has signed a license agreement with IncoCell Tianjin Ltd.
IncoCell Tianjin is a wholly-owned subsidiary of Boyalife Group. According to the release issued by KOOL, the agreement surrounds CAR-T related and other cellular processing CDMO services. Under the terms of the agreement, ThermoGenesis has granted InoCell an exclusive license to purchase at a discount and use its X-SeriesTM cellular processing research devices, consumables and kits for use in the conduct of CDMO operations in certain Asia Pacific countries. In exchange, ThermoGenisis will be entitled to a percentage of IncoCell’s gross contract development revenues. This includes any potential upfront payments, future milestones, or royalty payments. In a statement, Dr. Chris Xu, CEO at KOOL, had the following to offer:
China is among the leading markets for CAR-T developers, and together with the U.S., represents the two countries with the highest number of ongoing CAR-T clinical trials… This agreement with IncoCell signifies our first CDMO collaboration, and is consistent with our goal of expanding beyond off-the-shelf cellular processing solutions into higher-value contract manufacturing and development services. Moving forward, we plan to pursue additional CDMO collaborations in selected markets while executing global distribution and other strategic partnering agreements for our highly differentiated X-Series line of products.
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 Cesca Therapeutics proved to be overwhelmingly positive. So, it’s no surprise that we’re seeing a strong reaction in the market today. Currently (8:05), KOOL is trading at $3.34 per share after a gain of $0.27 per share or 8.79% 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 KOOL. In particular, we’re interested in following the company’s shift to higher-revenue CDMO services. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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