After reporting that it has licensed new technology from UCLA, Seelos Therapeutics Inc (NASDAQ: SEEL) had an incredible day in the market yesterday, gaining nearly 100%. Today, those gains are continuing.
At the moment, the stock is gaining in multiples as excitement surrounding the licensed technology continues to build. Today, we’ll talk about:
- Why the technology license is such a big deal;
- what we’re seeing from SEEL stock as a result; and
- what we’ll be watching for ahead.
Why The Licenseing Agreement Is Sending SEEL Stock Climbing!
We’ll get into the importance of the Seelos Therapeutics licensing agreement in a moment. First, let’s talk about what the agreement is.
The comapny announced in a press release yesterday that it has acquired an exclusive license to IP from UCLA. The technology relates to a family of peptide inhibitors that target the aggregation of alpha-synuclein.
SEEL intends on evaluating the technology as an approach to treat Parkinson’s disease as well as other disorders affecting the central nervous system. The new program will be known as SLS-007.
There are several reasons that investors are excited about this. First and foremost, the company only made a small up-front payment of $100,000 to license the technology. While there will be future remuneration via royalties upon commercialization, this is a steal of a deal in the biotech space, where assets treating conditions like Parkinson’s disease generally carry much higher price tags.
Moreover, preclinical data shows that this asset has displayed a strong profile in terms of mechanism of action and efficacy. As such, the asset is likely already ready to head into human trials upon the approval of an IND.
All in all, SEEL got a great deal, and through the deal, the company got a strong potential option for the treatment of central nervous system disorders at a steal of a deal.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is to watch the news closely. After all, it’s the news that moves the market. When it comes to Seelos Therapeutics, the news proved to be overwhelmingly positive. Not only did the company acquire a new asset, it got a steal of a deal on it.
Considering this, it wasn’t surprising to see that the stock was headed for the top yesterday nor are the gains today shocking. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (7:!7), SEEL is trading at $6.15 per share after a gain of $3.11 per share or 102.30% 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 SEEL. In particular, we’re interested in following the story surroudning SLS-007 as well as the continued development of the rest of the company’s pipeline. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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