Some Small-Cap Biotech Stocks Worth Watching

|
 |  Includes: CLBS, IPCI
by: M. E. Garza

There are a number of stocks we've been monitoring since we did both trade and watch-list alerts for our subscribers about them. Now is the time you really want to play close attention to them.

The first is one you keep hearing me talk about: NeoStem (NBS). The company, of course, is set to raise some money (as noted by their recent Securities Registration Statement filing) and that will enable them to grow revenues and start trading at a completely different level than where they are today.

Chatter has them very close to that deal, so please be aware that this stock could start to climb in the coming days. In addition, this morning, the company issued a press release that announced its stem cell collection network has expanded into the southwestern region of the U.S. with the addition of the physician group at Westlake Orthopaedics Spine & Sports ("Westlake") in Austin, TX. The Company is on track to achieve its target of 10 collection centers in its national network by the end of 2010.

This is a company on the move, growing revenue streams very quickly and preparing to double manufacturing and distribution capacities. It's vastly undervalued at today's price, in my humble opinion.

As you've read in my previous reports about the company, the Chinese pharmaceutical market forecast to reach $30 billion by 2013 and it positions China to become third largest drug market (behind U.S. and Japan). When Neostem completed the acquisition of China Biopharmaceuticals Holdings, Inc. they became a player in that very lucrative Chinese pharmaceutical market. The fact that in the process, they acquired a 51% controlling interest in Erye- the pharmaceutical subsidiary whose revenue has nearly doubled since 2007- as part of that deal instantly puts money in Neostem's coffers for years to come.

The second company is IR Biosciences' ImmuneRegen [OTCBB: IRBS]. As we told you in our recent spotlight report, this company seems to be gathering quite a bit of attention from places like the NIH, the National Cancer Institute, BARDA (Biomedical Advanced Research and Development Authority), and the armed forces for its development candidate Homspera® - the compound has several broad-reaching applications.

Study results have shown its ability to regenerate and strengthen the immune system and enhance wound healing, thereby providing possible treatments for acute radiation exposure, infectious diseases, vaccine adjuvancy, and chemical exposures. The compound has been modulating the immune system. How it plays a role for various indications has increased the company's confidence in its candidacy for various large market opportunities as well as a rumored and yet to be publicly announced partnership with one integrated pharmaceutical industry player as they get further into clinical studies. That same company has a high level of interest (as do other entities) in purchasing the company's compound as a therapy for cancer -- melanoma specifically. There are people lining up to further study this compound and really try to hone in on the action.

Finally, we're hearing chatter that a big fund took a big position in Intellipharmaceutics (NASDAQ:IPCI) yesterday. the company has been on a road show and attracting some attention. We're going to try to find out why that is and perhaps arrange an interview with the management team for a future special report.

These funds don't take big positions in the open market like this unless they hear or see something they really like and believe in long-term. Based in Toronto, Ontario, but trading on the Nasdaq, the company reportedly has an impressive and unique drug delivery platform and they are known as a pharmaceutical innovator. Those controlled-release drug delivery technologies are being applied to the development of a wide range of pharmaceuticals. The Company itself has a pipeline of both generic and new drugs.

Disclosure: Author holds a long position in NBS