What’s causing ThermoGenesis Holdings (NASDAQ:THMO) stock traders to suddenly go on a buying binge? Evidently, the share-price rally is prompted by ThermoGenesis’s announcement that it’s launching a new facility in the Sacramento metro area of California. That might not seem like a big deal at first glance, but there are larger implications for ThermoGenesis and its shareholders.
ThermoGenesis Holdings sells automated technologies for CAR-T and other cell-based therapies. It’s a fairly small company with a market capitalization of less than $5 million (though that could change in the near future).
Up to this point, ThermoGenesis Holdings has relied on revenue from its medical products, such as the company’s CAR-TXpress platform. The purpose of CAR-TXpress is to streamline the manufacturing process for the CAR-T immunotherapy market.
It appears that there are changes afoot at ThermoGenesis Holdings. The company won’t necessarily stop selling its cell and gene therapy tools. However, ThermoGenesis is rolling out a facility in California that contains a dozen ReadyStart cGMP Suites. These suites will be “available for lease by early-stage life science and cell gene therapy (‘CGT’) companies.”
What’s Happening With THMO Stock?
THMO stock nearly doubled this morning, moving up 85% to 95% before hitting resistance at $4. Clearly, the trading community is glad to hear about ThermoGenesis Holdings’ new business venture.
As the press release explains, ThermoGenesis’ rollout of the ReadyStart Suites is part of a bigger plan for the company. In particular, ThermoGenesis Holdings seeks to transform itself “from a medical device company to a contract development and manufacturing organization (‘CDMO’) in the cell gene therapy field.”
Of course, changes of this magnitude can’t happen overnight. ThermoGenesis expects its new facility to be available for customers during 2023’s second or third quarter.
The ReadyStart cGMP Suites could be a major revenue source, though. If it’s fully occupied, ThermoGenesis’s new facility is expected to generate $10 million to $16 million in estimated annual revenue. Undoubtedly, this potential moneymaker is a catalyst for the surge in THMO stock today. Yet, investors also seem to be pleased with the transformation of this small but growing company, ThermoGenesis Holdings.
On the date of publication, David Moadel 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.
