Shares of Chesterfield-based Commonwealth Biotechnologies almost doubled Thursday, closing at $0.76 a share.
Stocks that trade for less than $1 are notoriously volatile, but this seems to be on account of a deal with a of GL Biochem in Shanghai. (You can read about that here.)
The company is also losing less than last year, $815,103 versus $1.1 million.
Shares traded around $6 a share in 2005 and around $2 a share in 2007.
The company said in a statement that the Chinese biotech company they plan to acquire generated $2 million in after-tax profit and has $8.5 million in assets. In the past five years, the company increased revenue 40 percent.
GL BioChem’s 350,000-square-foot lab facility in Shanghai employs more than 1,000 chemists. Commonwealth Biotechnologies’ Australian subsidiary Mimotopes recently opened a facility near Shanghai as well, allowing them to work together.
With the merger, Commonwealth Biotechnologies is aiming to expand into the growing Asian market for pharmaceuticals.
Shares of Chesterfield-based Commonwealth Biotechnologies almost doubled Thursday, closing at $0.76 a share.
Stocks that trade for less than $1 are notoriously volatile, but this seems to be on account of a deal with a of GL Biochem in Shanghai. (You can read about that here.)
The company is also losing less than last year, $815,103 versus $1.1 million.
Shares traded around $6 a share in 2005 and around $2 a share in 2007.
The company said in a statement that the Chinese biotech company they plan to acquire generated $2 million in after-tax profit and has $8.5 million in assets. In the past five years, the company increased revenue 40 percent.
GL BioChem’s 350,000-square-foot lab facility in Shanghai employs more than 1,000 chemists. Commonwealth Biotechnologies’ Australian subsidiary Mimotopes recently opened a facility near Shanghai as well, allowing them to work together.
With the merger, Commonwealth Biotechnologies is aiming to expand into the growing Asian market for pharmaceuticals.