PlasmaTech Biopharmaceuticals (PTBI) Stock Soars on Soros Stake
Shares of PlasmaTech Biopharmaceuticals Inc. (PTBI) were trading up +1.37 or +47.9 percent to $4.20 per share in Tuesday's premarket after news that hedge fund manager George Soros had increased his stake in the company. PlasmaTech Biopharmaceuticals stock closed at $2.86, up +0.03 or +1.06 percent in Monday's regular trading session.
Dallas, Texas based PlasmaTech Biopharmaceuticals Inc., formerly known as Access Pharmaceuticals is a biotech company focusing on the development of treatments for meeting the needs of critical care cancer patients.
The company has two main products in the commercial stage, MuGard, a treatment for oral mucositis, and ProctiGard, a treatment for rectal mucositis. In addition, the company has several other pre clinical products in their pipeline. The company's stock was listed on the Nasdaq on January 1st, it had formerly traded on the OTC market under its former name, Access Pharmaceuticals.
PlasmaTech entered into an exclusive licensing agreement in September, for their treatment extracting protein based drugs from human blood plasma, which, the company estimates could potentially grow to a $15 billion market. The company received clearance from the FDA for its products targeting the side effects of cancer treatments.
This morning's sharp gain in the company's stock is the result of news that George Soros through Soros Fund Management, had purchased an additional 1,166,667 PlasmaTech shares on April 22nd. Soros originally bought 250,000 shares in last year's fourth quarter, bringing his total stake to 5.17 percent.
The company has not reported a profit and has had negative cash flows since its founding, raising capital through private placements of the company's common stock. PlasmaTech recently announced the upsized private placement of $7 million of common stock with Knoll Capital Management in addition to another institutional fund manager.
The private financing deal involved the sale of 2,333,333 shares of PlasmaTech common stock for a price of $3.00 per share. The company plans to use the funds to further development of their Salt Diafiltration Plasma Protein technology, as well as using a portion for working capital and general purposes.
On April 24th, the day the deal with Knoll Capital took place, Steve H. Rouhandeh, Executive Chairman at PlasmaTech said that, "We are pleased and excited to have both a new high quality institutional investor, and with the expanded participation of a current investor, to enable the build out of our proprietary plasma protein extraction and purification process. We look forward to a constructive and dynamic relationship moving forward.
PlasmaTech stock has been on a roller coaster since listing on the Nasdaq in January. The stock was issued at $4 per share when it listed on the exchange and has climbed to a high of $12 per share and has since declined to its current level. This morning's action and the news of Soro's newly acquired stake in the company could see the stock recover significantly.
Other News About PTBI
Ongoing Trial May Lead to Better Understanding of Oral Mucositis, a Debilitating Side Effect Affecting Many Cancer Patients
Mugard treats chemotherapy patients with side effects such as oral mucositis.
PlasmaTech Biopharmaceuticals Bolsters Scientific Advisory Board With Alpha-1 Expert Charlie Strange, M.D.
Expert will aid the company in developing its Alpha 1 augmentation therapy.
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