Why Catalyst Biosciences Inc (CBIO) Stock Tripled on Tuesday


It’s not often you see a stock triple mere weeks after a big reverse split, but that’s exactly what’s happening with clinical-stage biotech stock Catalyst Biosciences Inc (NASDAQ:CBIO), up more than 200% early Tuesday.

Why Catalyst Biosciences Inc (CBIO) Stock Tripled on TuesdayCBIO stock shot higher on an approval from the Korean Ministry of Food and Drug Safety for its Investigational New Drug Application for treatment CB 2679d/ISU304 — a hemophilia treatment.

Specifically, CB 2679d/ISU304 is a “highly potent next-generation coagulation Factor IX variant” that has the potential to normalize Factor IX levels with a daily injection, at least in preclinical studies. The drug “has exhibited enhanced procoagulant activity, improved efficacy in inhibiting blood loss, and prolonged duration of action in bleeding and non-bleeding preclinical models compared with other Factor IX products on the market.”

ISU Abxis, a collaborator on the treatment, will initiate a Phase 1/2 proof-of-concept study sometime in Q2 2017.

Tuesday’s action marks one heckuva turnaround in CBIO stock, which had fallen roughly 99% over the past three years. The company has been forced to execute not one but two reverse stock splits to remain in Nasdaq compliance — a 1-for-7 split in 2015, followed by a 1-for-15 split in February.

Catalyst Biosciences has only recorded trace revenues over the past few years, but net losses have only accelerated, jumping from $6.61 million in 2014 to $16.95 million last year.

As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2017/03/catalyst-biosciences-inc-cbio-stock-tripled-tuesday/.

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