Stellar Biotechnologies Inc (NASDAQ: SBOT) is having an overwhelmingly strong start to the trading session this morning after the company announced third-party trial results demonstrating that the company’s manufacturing methods achieve robust viral clearance. Of course, the news proved to excite investors, sending the stock screaming for the top. Today, we’ll talk about:
- The update;
- what we’re seeing from the stock;
- and what we’ll be watching for with regard to SBOT ahead.
SBOT Announces Clinical Update
As mentioned above, Stellar Biotechnologies is having an incredibly strong start to the trading session after the company provided a clinical update. In a press release issued early this morning, the company announced news surrounding third-party trial results. According to the release, these results have demonstrated that the company’s KLH manufacturing methods achieve robust viral clearance. SBOT said that this clearance is a key quality assurance milestone under the company’s initiatives to increase the scalability and throughput capacity of its manufacturing process.
The results came from a trial performed by Texcell. Texcell is a contract testing organization that is focused on viral safety. These tests demonstrated that the manufacturing process used by the company meets suggested regulatory criteria for robustness. Also, routine quality testing has not detected the presence of viruses in Stellar KLH. As a result, the company is planning on rolling out manufacturing optimizations ahead of the next phase of its customers’ clinical studies. The company said that it will also routinely test for viruses and validate the viral removal of its manufacturing process as needed. In a statement, Gregory T. Baxter, PhD, Vice President of Corporate Development at SBOT, had the following to offer:
KLH is a key component for the success of multiple immunotherapies under development and Stellar is committed to expanding our manufacturing capacity and validating our quality systems as our customers advance toward pivotal Phase 3 clinical studies.
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 proved to be overwhelmingly positive. After all, the validation of the company’s manufacturing process is a great milestone. So, it’s no surprise that investors are excited, sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:49), SBOT is trading at $3.06 per share after a gain of $0.87 per share or 39.74% 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 SBOT. In particular, we’re interested in following the company’s ongoing perfection of its manufacturing process and excited to see how the new source of validation is used to generate revenue growth. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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