If there is one stock that is expected to be on the radars of most investors today, then it is the Catalyst Biosciences (NASDAQ:CBIO) stock, which had managed to clock gains of as much as 235% on Monday following a key development.
Trading Data
On Monday, CBIO stock surged 234.21% to $1.27 with more than 235.31 million shares, compared to its average volume of 271K shares. The stock moved within a range of $0.8951 – 1.4700 after opening trade at $0.95.
Catalyst Biosciences Sells Complement Portfolio for $60 Million
In light of such massive gains, it might be a good time to look into the actual announcement. The company announced yesterday that it had decided to sell its portfolio of protease medicines to Vertex Pharmaceuticals. The deal is worth as much as $60 million and Vertex is going to pay the entire sum in cash.
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In this context, it should be noted that the portfolio also includes the product CB 2782-PEG. That was an interesting development considering the fact that it was only in March this year that Catalyst managed to get back the rights to CB 2782-PEG from Biogen.
The Chief Executive Officer of the company Nassim Usman spoke about the development as well. He noted that for some time, Catalyst had been looking into ways in which it could monetize its assets and thereby unlock more value for the shareholders. It remains to be seen if the stock continues to add to its gains today or not.
Key Quote
“We have been exploring strategic alternatives to monetize our assets and maximize value for our shareholders. This sale is part of the ongoing strategic process that we announced in February to explore alternatives and create value for shareholders. We have significantly reduced our cash burn and continue to work with our advisors to evaluate additional strategic alternatives for Catalyst,” said Nassim Usman, Ph.D., Chief Executive Officer of Catalyst Biosciences.
Technical Data
CBIO stock is trading above the 20-Day and 50-Day Moving averages of $0.52 and $0.56 respectively. However, the stock is trading below the 200-Day moving average of $1.87.
