The Cynata Therapeutics Limited (ASX: CYP) share price is in the green today following news of a company deal.
Shares in the biotechnology company are up 4.1%, trading at 50 cents at the time of writing.
Let’s look at what might be impacting the Cynata share price today.
What did the company announce?
Cynata advised it was entering a manufacturing services agreement with the Wisconsin-based Fujifilm Cellular Dynamics (FCDI).
The agreement will enable FCDI to manufacture stem cell technology for Cynata to use in clinical trials and potential commercialisation. These stem cells are derived from induced pluripotent stem cells.
Cynata is an Australian-based company that is developing therapies to treat human disease using its Cymerus therapeutic stem cell technology. This includes its lead product CYP-001, which is at the planning stage for a phase 2 clinical trial.
FCDI is a global developer of human-induced pluripotent stem cell technologies.
What did management say?
Commenting on the agreement, Cynata chief operating officer Dr Killian Kelly said:
Ultimately, we foresee FCDI manufacturing product for our growing pipeline of clinical trials in high value indications and potentially for commercial use.
This provides a turn-key manufacturing solution that our future corporate partners may avail themselves of.
Importantly, FCDI has also confirmed a strong commitment to our relationship by agreeing to extending the voluntary escrow over their shares in Cynata.
Cynata initially flagged the deal to the market in September.
Now the deal is sealed, the companies will set up a manufacturing process for the Cymerus stem cell technology at the FCDI’s US base.
Cynata share price snapshot
The Cynata share price has plummeted this year, down nearly 28% since January.
In contrast, the S&P/ASX 200 Index (ASX: XJO) is returning nearly 12% this year to date.
The company’s shares have lifted more than 11% in the past five days alone.
The company has a market capitalisation of around $71 million based on the current share price.
The post Here’s why the Cynata (ASX:CYP) share price is rising today appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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