Seeking Alpha
Profile| Send Message|
( followers)  

I am recommending that readers take a look at Pluristem Therapeutics (Nasdaq: PSTI), a cell therapy company which obtains its cells from the placenta, or after-birth, which comes after the baby’s birth.

Accordingly, Pluristem Therapeutics provides the solution to the embryonic stem cell controversy since Pluristem’s cells are not embryonic – in fact, Pluristem does not harm or even touch the donor to obtain its cells. Pluristem Therapeutics gets its cells from what has been designated as medical waste until now.

Pluristem grows its cells in a fashion that is protected by patents. The cells can be given “off-the-shelf” without any matching needed between Pluristem Therapeutics’ cells and the patient receiving the cells. Once injected, Pluristem’s cells, called PLX (Placental eXpanded) cells, respond to signals sent from injured tissue to secrete a mixture of anti-inflammatory and new-blood-vessel forming proteins that treats the injury.

Because of the way Pluristem Therapeutics’ cells work; there is broad applicability to using PLX cells for a wide variety of diseases and injuries such as vascular disease, pain reduction, Crohn’s disease, stroke, and the complications of Diabetes.

Pluristem Therapeutics is finishing initial clinical trials using its PLX cells in vascular insufficiency of the legs, a common complication of diabetes and heavy smoking, where there is not enough blood getting to the lower legs and feet, resulting in pain, non-healing ulcers, and amputations. PLX cells were found to be safe and potentially effective in treating these disorders in the completed trial that was conducted in Germany.

I am placing a one year price target of $6.00 and a two year target of $10.00 on PSTI. The stock's recent (52-Week) price range is $1.75 - $0.82; The company has 26.2 million shares outstanding and 43.5 million shares when fully diluted with a current market cap of $36 million.

Pluristem Therapeutics has a high probability of success in achieving several significant milestones in the near future, which include the following:

  1. The end of patient dosing in the USA trial, conducted at Duke, Stanford, and the Center for Therapeutic Angiogenesis in Birmingham, Alabama.
  2. Regulatory approvals (USA and Europe) of protocols, and permission to begin Phase II/III studies for using PLX-PAD cells in critical limb ischemia (CLI).
  3. The results of the combined German/USA Phase I/IIa trials for the use of PLX-PAD cells in CLI
  4. Pipe line of products for the use of Pluristem Therapeutics’ PLX cells.
  5. Off-the-shelf product with attractive gross margins put the company in a position enter to a potential collaboration with the large Pharmaceutical companies. The PAD annual market is estimated in over $10b and attracts the interest of such Pharmaceutical companies.
  6. Pluristem just announced 5.25 Million financing which gives them solid balance sheet for operations. Effective production process support low burn rate, the company also received 5 consecutive years government grants for Novel Technologies. The 2010 grant was in the amount of $2.5M.

Read the full report here.

Disclosure: No Positions

Source: Six Reasons to Like Pluristem Therapeutics