Here’s why the Cynata (ASX:CYP) share price is rising today

This biotechnology company has signed an agreement.

| More on:
Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

Image source: Getty Images

The Cynata Therapeutics Limited (ASX: CYP) share price is in the green today following news of a company deal.

Shares in the biotechnology company are up 4.1%, trading at 50 cents at the time of writing.

Let’s look at what might be impacting the Cynata share price today.

What did the company announce?

Cynata advised it was entering a manufacturing services agreement with the Wisconsin-based Fujifilm Cellular Dynamics (FCDI).

The agreement will enable FCDI to manufacture stem cell technology for Cynata to use in clinical trials and potential commercialisation. These stem cells are derived from induced pluripotent stem cells.

Cynata is an Australian-based company that is developing therapies to treat human disease using its Cymerus therapeutic stem cell technology. This includes its lead product CYP-001, which is at the planning stage for a phase 2 clinical trial.

FCDI is a global developer of human-induced pluripotent stem cell technologies.

What did management say?

Commenting on the agreement, Cynata chief operating officer Dr Killian Kelly said:

Ultimately, we foresee FCDI manufacturing product for our growing pipeline of clinical trials in high value indications and potentially for commercial use.

This provides a turn-key manufacturing solution that our future corporate partners may avail themselves of.

Importantly, FCDI has also confirmed a strong commitment to our relationship by agreeing to extending the voluntary escrow over their shares in Cynata.

Cynata initially flagged the deal to the market in September.

Now the deal is sealed, the companies will set up a manufacturing process for the Cymerus stem cell technology at the FCDI’s US base.

Cynata share price snapshot

The Cynata share price has plummeted this year, down nearly 28% since January.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is returning nearly 12% this year to date.

The company’s shares have lifted more than 11% in the past five days alone.

The company has a market capitalisation of around $71 million based on the current share price.

Should you invest $1,000 in Cynata Therapeutics right now?

Before you consider Cynata Therapeutics , you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Cynata Therapeutics wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Nothing to see here, just a storm in a teacup as far as this boy and girl are concerned, sipping tea in their living room.
Healthcare Shares

‘Storm in a teacup’: Why the Imugene share price is lifting 14% today

What did Imugene reveal in its letter to shareholders today?

Read more »

A man flies into the sky over a city building-scape with a rocket jet pack sketched onto his back representing the Imugene share price skyrocketing today
Healthcare Shares

Imugene share price surges 18% to lead the ASX 200 on Thursday

What's behind the meteoric gain for this ASX 200 healthcare stock today?

Read more »

Rising arrow on a blue graph symbolising a rising share price.
Healthcare Shares

Next Science shares defy ASX market slump to surge 8%

Next Science shares are set to finish Thursday's trading session on a high note.

Read more »

Team celebrating corporate success screaming with joy.
Healthcare Shares

How is the Polynovo share price managing to push higher today?

Polynovo shares are defying the broader ASX market on Thursday.

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring the his laptop screen as the Mesoblast share price falls
Healthcare Shares

Mesoblast share price dips amid latest class action news

The company is being taken to court by another unhappy shareholder.

Read more »

A smiling woman looks at her computer laptop in her home with warm lights in the background feeling happy to see the EMvision share price rising
Healthcare Shares

EMvision share price rockets 11% on $5 million pay day

Shares in the Australian medical device company shot higher today.

Read more »

retirement investing represented by older investor looking concerned at computer screen
Healthcare Shares

Why is the Medibank share price struggling to gain ground in May?

We check what's going on with shares in the private health insurer.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Healthcare Shares

Here’s why the Imugene share price just got a boost

Imugene's latest announcement is rallying up investors.

Read more »