Why Elevai Labs Stock Is Trading Higher
Portfolio Pulse from Erica Kollmann
Elevai Labs, Inc. (NASDAQ:ELAB) stock is trading higher after announcing an exclusive worldwide licensing agreement with INmune Bio, Inc. (NASDAQ:INMB) to use INmune Bio's EMx technology for manufacturing hucMSCs. This technology allows Elevai to produce these cells more cost-effectively than purchasing them, which can be used in certain licensed topical cosmetic products. The agreement includes an initial deposit, a final tech transfer fee, and a nominal royalty on sales of products made using the technology.
January 16, 2024 | 5:41 pm
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POSITIVE IMPACT
Elevai Labs' stock is experiencing an uptick due to the licensing agreement with INmune Bio, which is expected to reduce manufacturing costs and potentially increase profitability for Elevai's skincare products.
The positive market reaction is likely due to the anticipated cost savings and expansion potential in the medical aesthetics skincare market. The agreement could lead to improved margins and a broader product range, which investors are viewing favorably in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
INmune Bio's agreement to license its EMx technology to Elevai Labs may result in additional revenue streams through the initial deposit, tech transfer fee, and royalties on sales of products using the technology.
INmune Bio stands to benefit from the licensing agreement through the initial and tech transfer payments, as well as ongoing royalties. This could provide a steady income stream and validate the commercial viability of their EMx technology, which is likely to be viewed positively by investors.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80