Stem Cell Research Stocks Soar as Obama Takes Office

Shares of Geron (GERN) soared more than 40% on Friday on FDA approval to begin human clinical testing this summer for an embryonic stem cell treatment for spinal cord injuries. The approval comes just days after the new administration took office, breathing new life into related companies such as StemCells (STEM), Aastrom Biosciences (ASTM), and others tracked in the ETF Innovators Cosmetic & Reconstructive Medicine Index.

This index and new ETF idea represents a first-to-market idea to provide investors with an exchange-traded product to invest in a basket of regenerative medicine and stem cell companies such as Osiris (OSIR), Genzyme (GENZ), Cytori Therapeutics (CYTX), Mesoblast (MBLTY.PK), Integra LifeSciences (IART), and Kinetic Concepts (KCI) (LifeCell acquisition). The index includes 79 companies engaged in cosmetic medicine, regenerative medicine + stem cells, orthopedic repair, joint replacements, and cardiovascular (heart + blood vessels) treatments.

As a semi-active ETF idea, this product would be rebalanced each month to select the top 35 rated companies with market caps over $100M as equally-weighted active components based on a variety of factors, including market cap weighting, revenue weighting, historical stock price return, and others.

The accompanying table below includes the top seven rated regenerative medicine + stem cell companies and full index statistics over the past year, with favorable results compared to the Healthcare Sector SPDR (XLV), iShares Nasdaq Biotech (IBB), SPDR S&P Biotech (XBI), and S&P 500 SPDR (SPY). Other favorable trends for this index include a bias toward small/mid-cap companies, making them takeover targets – as evidenced by the Johnson & Johnson (JNJ) buyout of breast implant maker and former index component Mentor.

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Comments

[Wingate:]

The cowboys are gone and they made us safe. God bless them. Obama is a breath of fresh air and we now can get well. Stem cell research on a fast track is a no brainer.

Jan 25 08:32 AM

[Gostem:]

It's about time. ASTM has been utilizing adult stem cells for years. It's a shame that our previous administration tried to halt modern medicine. Finally out of the dark ages.

Jan 25 10:26 AM

[cool hand luke:]

Stem cell industry is like TECHNOLOGY sector 10 years ago, it's emerging to be a very big industry, starting hardware, software and internet/mobil devise.

The tools to extract, concentrate and preserve stem cells will be the first group of companies to benefit this emerging industry - regenerative medicine - or so called cure the uncureables by traditional medicine.

Thermogenesis (KOOL) although recently became a falling angel (fell below $1) due to a minor product recall at the worst of stock market (November, 2008) probably will be the 1st to become profitable by operation. Most stem cell companies are on a huge life support (meaning opertate with cash infusion from investors).

KOOL is at the begining of a rebound from a severe over-sold by some mutual funds dumping when it went below $1, it has no debt, plenty of cash and tons on pricing power because there's no real competition on their products and they just raise price 25% on their products

KOOL is very close to become profitable for the 1st time. Do your DD like you own the company before investing as always.

Jan 25 11:50 AM

[Heath DiMaggio:]

(ASTM) Aastrom Biosciences has been developing stem cells the non-embryonic kind for years. They have several procedures and usages they are starting to put in place. They are worth a close look at.

Jan 27 12:25 PM

[Mike Havrilla:]

Cytori Therapeutics (CYTX) has been soaring ever since the Geron news and their products are already on the market in Europe and Asia for reconstructive medicine and cell banking plus they process adult stem cells from the patient's own fat tissue via the Celution System

Jan 27 12:53 PM