Seeking Alpha

Craig Keolanui

View as an RSS Feed
View Craig Keolanui's Comments BY TICKER:
Latest  |  Highest rated
  • NeoStem: A Stem Cell Leader Making All The Right Moves [View article]
    Good point! It is this "service" that PCT provides that only helps enhance their reputation and position in this marketplace. They just seem to be doing plenty of things to let people know that they are in this for the future. This point certainly is appreciated.
    Aug 6, 2013. 05:27 PM | 1 Like Like |Link to Comment
  • NeoStem: A Stem Cell Leader Making All The Right Moves [View article]
    The Vatican support is an important tool in public perception of not only NeoStem, but their practices as well. This relationship is unique and valuable due to the conservative nature of the church and the selection of NeoStem despite a rather small market cap. There is only good that can come from this relationship as time goes on and stem cell therapy moves further along.

    As is practice with most SA articles, potential fears always need to be part of the discussion. The burn rate of NeoStem will come down as trials move along and my opinion is that the PCT arm will continue to produce more revenue growth. Personally, I believe that AMR-001 will get through trials with positive results and PCT revenue will close the gap by that time.

    A buyout is always a possibility in the biotechnology sector, especially when the company has a small market cap, promising prospects and is a leader. It doesn't mean today or tomorrow, but that discussion at this time would be speculative at best. There is plenty to like without connecting those kind of dots.
    Aug 6, 2013. 05:23 PM | Likes Like |Link to Comment
  • NeoStem: A Stem Cell Leader Making All The Right Moves [View article]
    You have brought up some valid points that I will address.
    1) As of now, the Vatican has given $1 million to NeoStem for the development of VSELs. I think most view it as a sign of good faith, a blessing from the church, or the start of a larger relationship. The Vatican has been very vocal in their support of VSELs and NeoStem in conferences, TV appearances, etc. This marks a significant time in history for the Church, as it shows a willingness to invest in new medical discoveries that they have been reluctant to do in the past. The Vatican has over a billion members and could have invested in any big pharma company, but instead chose NeoStem. This speaks volume, and as VSELs progress, if successful, my belief is that the relationship would become significantly stronger. Consider the financial power and marketing abilities of the Catholic Church! This partnership could be huge for NeoStem long-term and will also go a long way to position NeoStem with the public at large.
    2) Good point. I think NeoStem has been aggressive in adding new clients. The company makes money per stage of clinical development. For example, a Phase 1 pays less than a Phase 3, and marketing contracts are the ultimate goal. With that said, IMUC, Baxter, and SOTIO all advanced into larger studies in the last year. Every client creates revenue, so NeoStem’s goal should be to earn as much business as possible, and then impress those clients with exceptional service. This could be a big revenue generator in the next few years.
    3) I don’t think too many people are focused on VSELs. I tend to think VSELs are under-the-radar and have very little coverage. NeoStem has a market cap of $150 million. If you consider the revenue potential of AMR-001 and PCT, then how much of the company’s value is focused on VSELs? By the time VSELs hit the market, I think NeoStem will be earning significant sales from AMR-001 and royalties from PCT. VSELs and their study only enhance NeoStem's future value and it is their diversification that and multi-faceted drivers for growth that makes them unique. Also, consider that NeoStem’s burn rate is higher in the enrollment process. Once fully enrolled, NeoStem is simply performing checks. The burn rate could drop in half.
    4) There is a Baxter connection, and now we have Dr. Losordo. Baxter’s CD34+ therapy is one of their most advanced and promising clinical products. Dr. Losordo developed it, and now is helping NeoStem develop a very similar product. I see no way that AMR-001 does not show efficiency in its Phase II study. Then, NeoStem is a billion dollar company.
    Aug 6, 2013. 05:10 PM | Likes Like |Link to Comment
1 Like