Why Is Statera Biopharma (STAB) Stock Up Today?

One of today’s most impressive movers in the market is Stratera Biopharma (NASDAQ:STAB) on news of a strategic agreement. Currently, STAB stock has appreciated more than 115% on an otherwise impressive green day in the market.

a scientist with protective equipment and microscope in a lab
Source: luchschenF / Shutterstock.com

A number of biotech stocks and other higher-risk equities are outperforming today, as various high-profile earnings reports roll in. Indeed, for companies looking to take a “buy the dip” approach, today has finally provided what looks like some positive momentum.

It’s worth noting Stratera is what most investors would consider a micro-cap stock. This company currently trades at a valuation of around $22 million at the time of writing. Accordingly, as a clinical-stage micro-cap pharmaceutical company, investors have a higher-risk, higher-upside bet in STAB stock to begin with.

Thus, today’s moves may not be unsurprising. However, as many investors may guess, there is a catalyst behind this move. Let’s dive into what investors are watching today with Stratera.

Why Is STAB Stock Soaring Today?

Stratera is a company focusing on providing various next-generation immune therapies. Given the pandemic world we’re living in, immune therapies are in focus right now.

However, today’s outsized move with Stratera appears to be the result of a strategic agreement the company signed with Immune Therapeutics for the rights to develop and commercialize naltrexone and met-enkephalin, two key drugs in Stratera’s pipeline.

These sorts of commercialization deals are commonplace in the biotech space. Clinical-stage companies with promising therapies or drugs often sell off interests in such drugs at an early stage to fund development of other pipeline drugs and therapies. Such appears to be the case with this deal.

The hope is that the cash flow from this transaction, which is contingent on ongoing negotiations, will fund other programs within the company. For those bullish on the research and development (R&D) capabilities of Stratera, there’s a lot to like about this deal. Today, the market is certainly taking notice. Additionally, I’ve put this stock on my watchlist right now to boot.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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