LOS ANGELES, March 29, 2018 /PRNewswire/ -- Stellar Biotechnologies, Inc. (Nasdaq: SBOT), a leading manufacturer of a
The construction project will allow the company to expand production of a medical-grade protein, called KLH, which Stellar produces in aquaculture from a marine mollusk. The plan includes 10,000 square feet of renovated Pacific ocean-front space for aquaculture production and related activities as well as new protective structures and aesthetic improvements. The company currently maintains an animal population to produce KLH to support multiple pre-commercial clinical trials. Once key infrastructure is in place, the company plans to incrementally add to its production capacity, including the installation of more aquaculture tanks. The planned upgrades will allow a multifold expansion of the company's current site capacity.
The first phase of Stellar's expansion project, which was completed in 2016, included improvements to the company's extraction and manufacturing suites, expanded hatchery space and the temporary relocation of its aquaculture production tanks to allow the permitting and development of its water-front site. The company currently leases 37,000 square feet of oceanfront property at the Port.
Stellar President and Chief Executive Officer Frank Oakes said that the company plans to incrementally increase production capacity in line with customers' clinical milestones and market opportunities for KLH. "We are preparing our infrastructure to support pharmaceutical industry standards for commercial drugs, including purity, controls and traceability," he said. "By staging these investments, we can prepare the business for growth while minimizing upfront costs."
Stellar Biotechnologies has operated since 1999 at the aquaculture business park, where it pioneered complex methods for the culture of the source animal, the Giant Keyhole Limpet, a previously undomesticated mollusk that is native to the California coastline. Today, Stellar supports limpets from embryo to protein-producing adult, and has multiple generations grown entirely within its land-based aquaculture facility. It is the only known facility that has accomplished this.
"As a science-based company, our business requires flexibility as we grow, and we have appreciated the support we have received from both the City and the Port over the years in upgrading our facilities," said Gregory T. Baxter, PhD, Stellar Executive Vice President of Corporate Development. "In addition to greater operational flexibility, our current expansion project will allow us to continue our research of this important marine species to ensure that future immunotherapies will have ample supplies of KLH."
In addition to the company's plans to expand its U.S production capacity, Stellar also plans to establish additional aquaculture capabilities in Baja California, including the development of regional marine resources, aquaculture and raw material processing. The company, which is currently conducting feasibility analyses in Mexico, believes that two production locations will allow it to better meet the anticipated long-term industry demand for KLH protein.
About Stellar Biotechnologies
Stellar Biotechnologies, Inc. (Nasdaq: SBOT) is the leader in sustainable manufacture of Keyhole Limpet Hemocyanin (KLH), an important immune-stimulating protein used in wide-ranging therapeutic and diagnostic markets. KLH is both a key pharmaceutical ingredient in many new immunotherapies (targeting cancer, immune disorders, Alzheimer's and inflammatory diseases) as well as a finished product for measuring immune status. Stellar is unique in its proprietary methods, facilities, and KLH technology. The company is committed to meeting the growing demand for commercial-scale supplies of GMP grade KLH, ensuring environmentally sound KLH production, and developing KLH-based active immunotherapies. Stellar KLH is a trademark of Stellar Biotechnologies.
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Stellar Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "may," "will," "would," "could," "should," "might," "potential," or "continue" and variations or similar expressions. Readers should not unduly rely on these forward-looking statements, which are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as all such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results or future events to differ materially from the forward-looking statements. Such risks include, but may not be limited to: general economic and business conditions; technology changes; competition; changes in strategy or development plans; availability of funds and resources; anticipated requirements for operating capital; governmental regulations and the ability or failure to comply with governmental regulations; changes in trade policy and international law; the timing of Stellar's or its partners' anticipated results, including in connection with clinical trials; the ability to meet the goals of Stellar's joint ventures and strategic partnerships; and other factors referenced in Stellar's filings with securities regulators. For a discussion of further risks and uncertainties related to the Stellar's business, please refer to Stellar's public company reports filed with the U.S. Securities and Exchange Commission and the British Columbia Securities Commission. All forward-looking statements are made as of the date hereof and are subject to change. Except as required by law, Stellar assumes no obligation to update such statements. This press release does not constitute an offer or solicitation of an offer for sale of any securities in any jurisdiction, including the United States.
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SOURCE Stellar Biotechnologies, Inc.
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