Cesca Therapeutics Inc. (NASDAQ:KOOL)
Shares of Cesca Therapeutics Inc. (NASDAQ:KOOL) gained 33.6% after the U.S Patent and Trademark Office (USPTO) issued a Notice of Allowance for the company’s pending patent application. The patent application covers the company’s proprietary method for separating rare, therapeutically critical target cells from the blood, bone marrow, and other cell sources.
Casca’s Investor Reaction
The company seeks to patent, Buoyancy-Activated Cell Separation (X-BACS). This technology is key to the development of the CAR-TXpress platform. If issued, it will be Cesca second patent in relation to the technology.
The X-BACS technology uses microscopic bubbles to isolate specific cell type from a complex mixture of cells. Cesca Therapeutics Inc. (NASDAQ:KOOL) plans to work with innovative biopharmaceutical companies to enhance the commercial viability of the technology.
Investors reacted to the Notice of Allowance by sending the stock to $6.44. However, by the end of the trading session, it closed at $4.81 per share. The new 52-week high supports the stock bullish run that has been in play since March. KOOL is up by more than 2% for the year.
“CAR-T represents the future of cancer treatment, yet we believe speed, cost and consistency will likely emerge as significant industry challenges. With the X-BACS technology embedded in CAR-TXpress, manufacturers will be able to improve the yield and consistency of CAR-T cells in less time and at a lower cost,” said CEO Chris Xu.
Cesca’s FY2017 Financials
Separately, the leader of automated cell processing and point-of-care has announced financial results for the fiscal year ending June 30, 2017. Net revenue for the full year totaled $14.5 million compared to $11.9 million reported the prior year. The company attributes the increase to an increase in shipments of AXP disposables, to distributors in China and Europe.
Gross profit for the full year more than doubled to $5.8 million from $2.7 million, due to higher average sales on product mix and reduction of overhead costs. However, Cesca Therapeutics Inc. (NASDAQ:KOOL) posted a wider than expected net loss of ($29.1) million or (-$3.27) a share compared to a net loss of ($18.7) million reported last year.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.