Global Stem Cell Index Down 9% Last Week
By Mike Havrilla on 2/21/09
The ETF Innovators Global
Stem Cell and Regenerative Medicine Index of 40 companies with market caps less than $1B at the index inception lost 9% of its value last week and is down 24.8% over the past year on an equal-weight basis, compared to losses of 21.6% for the Healthcare Sector SPDR (XLV), 8.4% for iShares Nasdaq Biotech (IBB), 4.5% for SPDR S&P Biotech (XBI), 19.9% for PowerShares Biotech & Genome (PBE), and 41.6% for the S&P 500 SPDR (SPY).
Click here for profiles and website links for all 40 companies and below are three companies to consider as long-term investments in regenerative medicine and stem cells based on their technology platforms, products + pipeline potential, and staying power – which is based on strategic partners for financing, nearing profitability, and strong balance sheet, respectively, for the three stocks listed below.
Cytori Therapeutics (CYTX) is a commercial-stage regenerative medicine company which is developing the Celution System to process a patient's own fat (adipose) tissue in about one hour for a variety of reconstructive and cosmetic medicine therapeutic applications.
CYTX also offers StemSource Cell Banking for a patient to preserve their own adipose-derived stem + regenerative cells (ADRCs) for use in the future as ongoing clinical trials establish the safety and effectiveness for cardiovascular disease, breast reconstruction/augmentation, liver disease, kidney failure, orthopedic/spinal disc regeneration, and gastrointestinal disorders.
CYTX currently offers its products and services in Japan and Europe along with two key strategic partners – Olympus Corp. (OCPNY.PK) (a strategic investor + medical device partner for Celution System) and Green Hospital Supply (GHSPF.PK) (a strategic investor + partner for StemSource Cell Banking, initially targeting hospitals in Japan).
ThermoGenesis (KOOL) is a commercial-stage provider of systems for the storage and processing of adult stem cells derived from cord blood and bone marrow. KOOL offers the AutoXpress Platform (AXP) (cord blood processing) as a family of automated devices which includes the MarrowXpress (bone marrow processing) and related disposables as a closed system to process and collect adult stem cells.
The CryoSeal FS System produces fibrin sealants from blood in about one hour for use in liver resection surgeries. KOOL also expects to enter the veterinary stem cell market under the Vantus brand and plans to launch Res-Q (a system for real-time processing of bone marrow and platelet rich plasma processing) during its fiscal 4Q09 as the Company hopes to achieve profitability during 2010.
Athersys (ATHX) recently received FDA clearance to begin a Phase 1 clinical trial for MultiStem as an "off-the-shelf" adult stem cell treatment for ischemic stroke to evaluate its safety and dosing parameters in as many as 48 patients. ATHX is in a unique position for stem cell companies as it trades at a market cap below its cash level of $33.5M with zero debt.
Intercytex Group (UK: ICX.L) (ICYXF.PK) is a regenerative medicine company which is developing cell-based therapies for commercialization as skin and hair repair + regeneration. Intercytex lost about three-quarters of its market value in the past five days after disappointing Phase 3 clinical trial results for Cyzact in the treatment of venous leg ulcers.
Intercytex illustrates the inherent risk of many companies in this index, but the three names mentioned earlier are trading at attractive entry points after losing all of their previous upside momentum and ahead of the expected move by President Obama to lift the ban on federal funding for stem cell research.
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