TICKERS: SBOT

Stellar Biotechnologies (SBOT:NASDAQ) Inks Multiyear KLH Supply Agreement with Amaran Biotechnology; Stellar Up 13% on News

Source:

Stellar Biotechnologies and Amaran Biotechnology have entered into an exclusive agreement where Stellar will supply KLH to the biopharmaceuticals manufacturer.

Stellar Biotechnologies Inc. (SBOT:NASDAQ) announced on March 1 that it has entered into an agreement to supply KLH to Amaran Biotechnology Inc. in connection with clinical studies of immunotherapies for metastatic breast cancer and other cancers.

Read Jason McCarthy's interview with The Life Sciences Report; the Maxim Securities analyst discusses Stellar Biotechnologies at length, including Maxim's $4 target price on the stock currently trading around $1.94.
Here

Stellar noted that the agreement "follows a two-year development collaboration between the companies involving the optimization of manufacturing processes for a KLH-conjugated vaccine known as Adagloxad Simolenin (formerly OBI-822), now in late-stage clinical studies. Adagloxad Simolenin is part of a new class of treatments, known as active immunotherapies, which are designed to stimulate a patient's own immune system to recognize and attack targeted tumor cells."

"This supply agreement with Stellar secures sustainable access to KLH, a key ingredient required to manufacture Adagloxad Simolenin, a therapeutic cancer vaccine which Amaran is producing for its client, OBI Pharma, Inc.," said Tessie Che, Amaran's general manager and Chair of its Board of Directors.

Stellar President and CEO Frank Oakes said, "This new agreement with Amaran provides us with another validation of the Stellar KLH carrier platform and marks an important step in the development of new treatment options for devastating cancers."

Stellar also noted that "under the terms of the supply agreement, Amaran has committed to purchase Stellar KLH in amounts necessary to meet its requirements for vaccine production. Stellar will maintain a master file with the U.S. FDA for the KLH product used by Amaran. In addition to Adagloxad Simolenin, the exclusive supply agreement covers cancer immunotherapies and vaccines that combine tumor antigens known as Globo H to one of Stellar's KLH product formulations."

Jason McCarthy, an equity research analyst with Maxim Securities, in his interview with The Life Sciences Report published March 1, noted that Maxim has a target price of $4/share for Stellar. When asked what drives that price, McCarthy said, "The $4 price target is based on its partners, the companies that are using its KLH, hitting their clinical milestones and that translating into supply contracts or partnerships for Stellar."

After the Amaran announcement on March 1, Stellar's stock rose from $1.52/share to $1.73.

Editor's note: Stellar's stock closed at $1.94 on March 3, a 27% gain since the Amaran announcement on March 1.

Want to read more Life Sciences Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this interview: None.
2) Stellar Biotechnologies Inc. is a billboard sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.