SINGAPORE - CytoMed Therapeutics Limited (NASDAQ:GDTC), a biopharmaceutical company specializing in cell-based therapies for cancer and aging-related diseases, has acquired assets from the Malaysian cord blood bank Cellsafe International Sdn Bhd (CISB) for approximately $490,000.
The acquisition, completed through its subsidiary IPSC Depository Sdn Bhd, includes a cord blood banking license, cryopreservation equipment, over 12,000 cord blood units, and two real estate properties.
CytoMed's investment aims to repurpose cord blood, traditionally used for blood disorders, for broader applications such as treating solid cancers. The company is leveraging its expertise in generating gamma delta (γδ) T cells, which have shown promise in recognizing and attacking cancer cells. The newly acquired assets will support the production of these cells, which can be derived from cord blood units (CBUs).
The acquisition also complements CytoMed's ongoing ANGELICA Trial, a phase 1 clinical trial in Singapore focusing on chimeric antigen receptor T-cells (CAR-T) for cancer treatment. The company is not assuming any past liabilities or guaranteeing the quality or viability of the CBUs as part of the transaction.
In a separate development, CytoMed announced the grant of a Malaysian patent for its licensed induced pluripotent stem cell (iPSC)-derived hybrid gamma delta Natural Killer T (γδ NKT) cells technology. The patent covers the generation and differentiation of iPSCs into hybrid γδ NKT cells, which have the potential to target a wide range of cancers without genetic editing.
The management of CytoMed has received board approval to invest up to a 7% stake in the venture, reflecting their confidence in the potential of cord blood-derived cell therapies. The company is seeking strategic partners to develop this subsidiary as a specialized immune cell bank.
CytoMed, incorporated in 2018, was spun off from Singapore's Agency for Science, Technology and Research (ASTAR). The company focuses on allogeneic immunotherapies using proprietary technologies and is actively developing its IPSC-γδ NKT cell program, with animal studies as the next milestone.
This news is based on a press release statement from CytoMed Therapeutics Limited.
InvestingPro Insights
In light of CytoMed Therapeutics Limited's (NASDAQ:GDTC) recent strategic acquisition and patent grant, examining the company's financial health and market performance offers additional insights. CytoMed, with a market capitalization of $22.62 million, appears to be navigating a challenging financial landscape. According to InvestingPro data, the company's revenue over the last twelve months as of Q4 2023 stood at $0.38 million, showcasing a significant growth of 39.52%. However, the company's revenue took a dip in Q4 2023, with a quarterly decline of 22.76%.
The financial metrics underscore CytoMed's current lack of profitability, with an adjusted P/E ratio of -7.52, indicating that investors are shouldering losses per share. Furthermore, the company's gross profit margin remains exceptionally high at 99.27%, suggesting that while revenues are low, the cost of goods sold is minimal. Despite these figures, CytoMed's operating income margin is deeply negative at -756.86%, reflecting substantial operating expenses relative to its revenue.
InvestingPro Tips reveal that CytoMed holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations, which could provide some financial flexibility in the short term. Nevertheless, analysts do not anticipate the company will be profitable this year, and the stock has been trading near its 52-week low. These insights suggest that while CytoMed is making bold strategic moves, the financial markets remain cautious about its near-term prospects.
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