Cytori Therapeutics Inc (NASDAQ: CYTX)
Cytori Therapeutics is having a strong day in the market today, and for a very good reason. It was announced early this morning that the company received a very important notice from the European Medicines Agency, also known as EMA. Today we’ll talk about the news CYTX received from the EMA, what it means for the company, how the stock reacted to the news, and what we can expect to see from CYTX moving forward. So, let’s get right to it…
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Cytori Is Granted SME Status
Early this morning, it was announced that CYTX has received word from the European Medicines Agency that the Micro, Small and Medium-sized Enterprise office has granted SME status to the company. This is incredibly important because this status allows CYTX to participate in incredible financial incentives, fee waivers, and fee reductions for some of the EMA’s regulatory filings. Ultimately the SME status was created as an initiative to promote innovation and development of new medical products by smaller companies. In statement, Tiago Girao, CFO at CYTX had the following to say:
“Our SME status could not have come at a more opportune time as we prepare to engage with the EMA for discussions regarding our lead development program for impaired hand function from scleroderma. Incentives provided, including reductions in regulatory fees will result in significant savings, which will help to bolster our cash management activities… More importantly, Cytori is dedicated to commercializing a treatment for scleroderma patients. This SME designation will help us drive towards this objective.”
How The Market Reacted To The News
When it comes to investing, one of the first things we learn is that the news moves the market. Any time there is positive news with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when there is negative news released with regard to a publicly-traded company, we can expect to see declines. In the case of CYTX, the news released this morning was overwhelmingly positive. So naturally, we’re seeing gains in the value of the stock today. Currently (10:47), CYTX is trading at $0.19 per share after a gain of 1.98% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Cytori. First and foremost, the news that was released today was overwhelmingly positive news that’s likely to lead to gains for the stock moving forward considering the amount of savings the company will realize as a result of the discounts associated with the new status in Europe. Outside of that however, I have been bullish on CYTX for some time now. In fact, for several months, I’ve been watching their movements with regard to working toward a treatment for scleroderma. Overall, the news released by the company with regard to their developments has been incredibly positive. Considering this, I’m expecting that, in due time, the company will come up with a positive treatment, leading to profitability. All in all, I’m expecting to see gains in the long run.
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What Do You Think?
Where do you think CYTX is headed moving forward and why? Let us know your opinion in the comments below!
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