Cytori (CYTX) Stock Climbs After Preclinical Data Release

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Cytori stock newsCytori Therapeutics Inc (NASDAQ: CYTX)

Cytori stock climbed this morning following the presentation of two preclinical studies funded through its contract with the United States Biomedical Advanced Research and Development Authority. The presentation of data came at the 2015 American Burn Association Meeting and show how Cytori’s cellular therapy improves healing following thermal burn injuries; even in patients that experience radiation exposure. In a statement, CYTX chief scientist, Dr. John Fraser had the following to say…

Our data show that Cytori Cell Therapy acts at the cellular and molecular level to modulate different phases of wound healing thereby accelerating would closure in clinically relevant large animal models. Treatment led to increased angiogenesis, blood vessel maturation, and deposition of collagen matrix which, along with accelerated epithelialization led to faster repair. These data are consistent with our prior studies with cells derived from adipose tissue in situations involving ischemia, inflammation and fibrosis.”


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How CYTX Reacted In The Market

Cytori had an incredibly strong morning this morning; rising more than 6% early on. However, as we tend to see in situations like this, the market overreacted and corrected; bringing the value down from the peak. Now, CYTX is growing at a more sustainable rate after the correction. Currently (11:02), the stock is trading at $1.00 per share after a 3.88% increase so far today.

What We Can Expect Moving Forward

I love it any time a biotech company comes out with positive preclinical data. Not only does it tend to lead to great gains in the market, positive data shows that the company is getting closer to making the quality of life better for several people. With this data, Cytori shows that their cell therapy is proving to work; which will be great for investors and burn victims alike.

As always, it’s important to remember that the small-cap biotech space is a very volatile one that can have incredibly unpredictable movements. Nonetheless, small-cap biotech companies become large companies when R&D leads to positive results. That’s exactly what we’re seeing here from Cytori. So, I’m expecting to see big things from the stock in the long run!

What Do You Think?

Where do you think CYTX is headed and why? Let us know in the comments below!

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