Stock for Catalyst Biosciences, Inc. (NASDAQ: CBIO) holds a remarkable trajectory this morning, which has caught the attention of traders. Following hardly any change, with a downward movement of 1.1%, CBIO shot up 23% in the span of an hour, in the aftermarket. This comes amidst a week-long bearish slide, losing the stock approximately 20% of its overall price. Recent movements potentially point to a swing, overturning these losses by a possibly substantial margin. The trigger event sparking a movement for the biopharmaceutical company links to a press release involving development rights.
Catalyst Biosciences Regains Rights to CB 2782-PEG
Catalyst Biosciences came with the news yesterday of its ending of collaboration with Biogen on dry AMD treatments. As a result of the discontinuation, complete rights to CB 2783-PEG return to Catalyst Biosciences. The firm, holding ownership of the candidate, will continue development on its own terms. The company sees the news as delightful, as it enabling synergistic benefit realization in the ophthalmology realm. Furthermore, it now has full rights to proceed with unrestricted development of the treatment, facing no collaboration-related restrictions in doing so.
Dry AMD, which refers to dry macular degeneration refers to a common condition amongst individuals aged over 50. Bringing on blurred central vision, the condition has a considerable market across the globe. Investors will certainly be monitoring milestone updates pertaining to CB 2782-PEG. This is due to the sheer potential the drug holds to bring immense value addition to Catalyst Biosciences.
CBIO Committed to Strategic Alternatives
The breakthrough regarding CB 2782-PEG comes after a report last month of Catalyst announcing working closely with Perella Weinberg Partners. CBIO sought the help of the financial advisory in order to help identify strategic alternatives. Focus was placed on hemophilia asset monetization, as well as the launch of new biopharmaceutical candidates. Furthermore, the consultancy advised on how strategic partners from across the industry could be identified and brought on board. The objective in this case would be to deliver synergistic benefit to the operations of CBIO.
Conclusion
CBIO is shooting up in the aftermarket, as a new report surfaces, detailing the company regaining rights to a crucial treatment candidate. If successful, the AMD product could cause a breakthrough for CBIO, given the substantial scale of the market. The milestone comes a month after the company partnered with Perella Weinberg Partners, in order to unlock unrealized strategic potentials.
