Stellar Biotechnologies, Inc. (SBOTF) Set to Benefit from Partner’s Presentation of Promising Clinical Data for KLH-Based Candidate
Stellar Biotechnologies, a leading provider of keyhole limpet hemocyanin (KLH) protein, has made considerable progress toward expanding its production capacity in recent months in order to better accommodate increasing demand for the vital nutrient in the pharmaceutical and biotechnology industries. In July, through a collaboration agreement with Ostiones Guerrero SA de CV, the company secured exclusive rights to the development of a second KLH production site in Baja California, Mexico, effectively bolstering its position as a leader in the sustainable manufacture of the valuable ocean resource. Following this partnership, Stellar’s experienced management team was vocal about the positive implications of establishing itself as the only company with a reliable and scalable supply of KLH.
“We expect demand for reliable sources of KLH to grow, both from our existing partners and the broader biotech industry, as the clinical use of novel immunotherapies increases,” Frank Oates, president and chief executive officer of Stellar, stated in a news release. “We believe this [Ostiones] collaboration will better position Stellar to accelerate its production strategy to accommodate the anticipated growth in the industry.”
Earlier this week, Stellar’s strategy was reaffirmed when its partner, Neovacs, presented promising extended follow-up data from its phase I/IIa clinical trial of IFNa-Kinoid, which is being evaluated for the treatment of systemic lupus erythematosus. Because the company’s KLH protein serves as the carrier molecule in Neovacs’s proprietary immunotherapy technology, these results are anticipated to play a key role in increasing the market demand for Stellar’s sustainable supply of the immune-stimulating protein in the future. In preparation for this increase, the company recently entered into an expanded supply agreement to meet Neovacs’s clinical and commercial requirements moving forward.
“This is an important milestone for Neovacs which, we believe, reinforces the role of KLH as a key carrier molecule in immunotherapy treatments,” continued Oates.
Rising demand for KLH has also had a positive impact on Stellar’s top line results in recent months. During its fiscal quarter ended June 30, the company recorded a 117 percent year-over-year increase in total revenues driven primarily by an increase in product sales resulting from its partners’ continued efforts to advance their respective clinical trials in various underserved therapeutic indications. For prospective shareholders, this performance could foreshadow an opportunity for tremendous growth in the coming months, as Stellar looks to effectively leverage its formidable position as the only company with a reliable and scalable supply of KLH.
For more information, visit www.stellarbiotech.com
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