Wednesday, July 29, 2015

Stellar Biotechnologies, Inc. (SBOTF) Preparing for Continued Market Growth through Strategic Partnership

Stellar Biotechnologies, Inc. (OTCQB: SBOTF), a leading provider of keyhole limpet hemocyanin (KLH) protein, yesterday announced a collaboration agreement with Ostiones Guerrero SA de CV that will allow Stellar to greatly expand its KLH production capacity in the future. Through this agreement, the two businesses will utilize their considerable expertise in marine-based industries in order to design and develop an environmentally-sustainable KLH production facility in Baja California, Mexico. Through the construction of this facility, Stellar will gain exclusive access to an additional site for hatchery and maturation of keyhole limpets, as well as production of KLH.

“This collaboration has far-reaching, positive implications for Stellar,” Frank Oakes, president and chief executive officer of Stellar, stated in a news release. “In addition to the clear operational security offered by a second site, the partnership with Ostiones provides Stellar the opportunity to extend our leadership in the sustainable manufacture of KLH while ensuring protection of a valuable ocean resource and natural habitat.”

Environmental protection is particularly important to the future financial success of Stellar, as the source of KLH protein, the giant keyhole limpet, is native to a limited stretch of the Pacific Ocean coastline. As a result, the company has developed a proprietary harvesting process that does not harm the giant keyhole limpets, ensuring a sustainable production process that can be scaled to meet the consistently rising demands of the biotechnology industry as the clinical use of novel immunotherapies continues to increase.

According to the terms of the agreement, Stellar will be responsible for certain leasehold improvements and construction of structures and utilities at Ostiones’s Baja California facility. Ostiones will provide labor and operational support, as needed, and the two partners expect to enter into a second deal regarding the use of site resources and utilities at a later date.

Through this agreement, Stellar will be in a strong strategic position to capitalize on the forecast market growth for KLH protein. In its fiscal quarter ending March 2015, the company demonstrated the biotechnology industry’s rising interest in its product by posting a 64 percent year-over-year increase in revenue as a result of increased sales volume. For prospective shareholders, Stellar’s foresight in meeting future market demand highlights the quality of its leadership team, as well as the overall marketability of its product. Look for the company to leverage this progress in the coming months, providing a platform for sustainable investor returns moving forward.

For more information, visit www.stellarbiotech.com

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