Stellar Biotechnologies, a leading
provider of keyhole limpet hemocyanin (KLH) protein, has made considerable
progress toward expanding its production capacity in recent months in order to
better accommodate increasing demand for the vital nutrient in the
pharmaceutical and biotechnology industries. In July, through a collaboration
agreement with Ostiones Guerrero SA de CV, the company secured exclusive rights
to the development of a second KLH production site in Baja California, Mexico,
effectively bolstering its position as a leader in the sustainable manufacture
of the valuable ocean resource. Following this partnership, Stellar’s
experienced management team was vocal about the positive implications of
establishing itself as the only company with a reliable and scalable supply of
KLH.
“We expect demand for reliable
sources of KLH to grow, both from our existing partners and the broader biotech
industry, as the clinical use of novel immunotherapies increases,” Frank Oates,
president and chief executive officer of Stellar, stated in a news release. “We
believe this [Ostiones] collaboration will better position Stellar to accelerate
its production strategy to accommodate the anticipated growth in the industry.”
Earlier this week, Stellar’s
strategy was reaffirmed when its partner, Neovacs, presented promising extended
follow-up data from its phase I/IIa clinical trial of IFNα-Kinoid, which is
being evaluated for the treatment of systemic lupus erythematosus. Because the
company’s KLH protein serves as the carrier molecule in Neovacs’s proprietary
immunotherapy technology, these results are anticipated to play a key role in
increasing the market demand for Stellar’s sustainable supply of the
immune-stimulating protein in the future. In preparation for this increase, the
company recently entered into an expanded supply agreement to meet Neovacs’s
clinical and commercial requirements moving forward.
“This is an important milestone
for Neovacs which, we believe, reinforces the role of KLH as a key carrier
molecule in immunotherapy treatments,” continued Oates.
Rising demand for KLH has also had
a positive impact on Stellar’s top line results in recent months. During its
fiscal quarter ended June 30, the company recorded a 117 percent year-over-year
increase in total revenues driven primarily by an increase in product sales
resulting from its partners’ continued efforts to advance their respective
clinical trials in various underserved therapeutic indications. For prospective
shareholders, this performance could foreshadow an opportunity for tremendous
growth in the coming months, as Stellar looks to effectively leverage its
formidable position as the only company with a reliable and scalable supply of
KLH.
For more information, visit
www.stellarbiotech.com
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