Growth, long only, stem cell companies, regenerative medicine
Growth, long only, stem cell companies, regenerative medicine
Contributor since: 2012
Doomed? Really? Oh please! A product MAY lose some margin and now they are doomed. There are plenty of early stage stem cell companies with similar market caps. Why? Is this company going to be doomed just because they become unprofitable? No, it would just make them like every other early stem cell player in the markets. Oh, and early technologies do tend to improve over time, lowering cost and increasing margin...
Insider selling? Interesting, Chairman and majority shareholder Peter Friedli is still holding on to his shares. So why would an insider sell now...hmm...or maybe a short seller was waiting for one to sell, to write this article, and emphasize their point...
The bottom line is, pass through or not, OSIR has been a big innovator in the field, they are sitting on a great product, and as long as it saves the system money, they will get reimbursed. If Grafix closes wounds and saves amputations why would it be doomed? Please find me an example where a superior medical product died out, because I would be interested.
Thanks for the perspective TSTF, I have been long ACTC for a while and I think it is ok to be long both adult and hESCs. While Lanza did stick to hESCs it did come at a cost and a good deal of dilution which while it may pay off, sure makes even a big jump in ACTC implausible. In contrast, while you could argue the adult mesoblast cells of OSIR are less potent, OSIR now has actual products entering the market that have proved effective for healing diabetic foot ulcers. Both companies are really covering new ground.
I see now I confused 2012 with 2013. Thanks for the source, will use it moving forward and edit the article now.
Thanks for the perspective. This stock has been flat for a while, but it is really only a matter of time till it corrects. $25 calls sound dangerous, especially in an article that is talking about all the news events which could trigger a breakout. This stock does have a habit of spiking quickly, and doubling in price.
Thanks for the comment. I get $27 million when I look at the Annual revenue data for MDXG on Google Finance. Let me know if I am seeing the wrong number somehow though. Thanks also for your opinion regarding the valuation analysis.
Interesting company, thanks for passing on the info.
Nice to see some numbers getting added to this comment. Where are you getting the 60 billion in revenue figure? Also, at that sales level, where do you see the share price and market cap? 60 billion seems like really high revenue, I mean, that is what Pfizer is doing annually...
Hi Sharon, interesting article. Even though Osiris's prochymal gained approval in New Zealand and Canada to treat Graft Vs Host Disease the reaction to that news, while initially good, was tampered by the fact that the GvHD market is not that big. The stock price regressed back to the $9 range (~$200-300 million market cap range). As Voova stated above the recent stock move for Osiris is in its bio-surgery and wound healing products. Beyond all this, Osiris has also gained approval to treat GvHD putting it ahead of competitors. Further, Osiris has experienced respectable and growing revenues, something lacking from most of the other stem cell small caps in the game, and making it something of a more solid bet.
Always nice to read an article about Osiris, which receives too little press in my mind. The doubling of the price last June was due to the announcement of getting Prochymal approval in New Zealand and Canada...a delayed reaction to good news which did not receive enough press. In regards to your comment on big companies: Yes, big companies do stem cell research, but in general it is start ups that are more generally more agile when it comes to developing new technology. Hedging and investing in both seems like a great idea. Big pharma also tends to buy these kinds of startups, my thinking is though, that OSIR management, led by Peter Frieldli will likely try to grow OSIR and leave it as its own company. Peter Frieldli's venture capital firm has had some success in the past with growing biotech companies and that is also one of the main reasons I am behind this stock.
Thanks for the correction and further info baltbear!
Thanks for the interesting article. Regarding FY2012 I think you meant to say their revenue was 3.9 million and not billion. Biotime's sliding revenue, and ballooning operating cost, is of some concern. Michael West is quite a figure, he founded Geron, Advanced Cell Technology, and BioTime. However gifted West is as a scientist, the lacklaster performance (thus far) of all these companies does not inspire confidence. Of course, I believe in West's mission and these investments take time, one has to take the long picture and be somewhat idealistic. I hope biotime's performance improves!
The other common thread of ACT, Geron, and Biotime is they were all started by Michael West, who is a pioneer in regenerative medicine. Geron started around 1992, the same time as Osiris (OSIR), however, Osiris actually has some stem cell therapies approved on U.S. and international markets. I think they make a better comparison against Geron.
Thanks for a good article, however, what do you make of the other products Osiris has in the pipeline? Like Neostem and the other players, Osiris is also in trials for cardiovascular, diabetes, and Crohn's. All of which are huge markets as well. Further, it appears the approvals in New Zealand and Canada will surely spread to all developed countries, increasing the market and sales considerably, any reasons why it wouldn't? All this seems to still point to Osiris being the best bet. Further, what do you consider a good valuation to income ratio? Google has a market value of 236B to 40B/year revenue, so that is 6 to 1. Seems like most other companies hover around 3-10x. Is Osiris really so over valued?
This is the most current article on CBAI. It has quarterly revenue of $1.5 million, but then only a $500K market cap? And loses about $100K a quarter? What is going on with this company?
In the interest of disclosure, I should say I own shares, but I was more making the point that ACTC is competing with STEM in terms of finding a therapeutic for the AMD market. STEM likely went up way too much with this one news break, and it will likely correct itself soon. After it corrects STEM will likely be a good investment, as any cell therapy company. I like these companies for their contribution to medicine as much as for their potential return.
It looks like Advanced Cell Technology (ACTC) is a little ahead of STEM with using stem cells to treat AMD. However, as their cell therapy is different, they are not the same bet as STEM.
Thanks for a good article on the potential of Chinese biotechs. I wish you dropped more ticker symbols in there to give examples of the smaller biotechs with higher premiums. Also, it would be nice to see your China pics that may prosper once regulatory hurdles have been mitigated. Or is it that none of these companies are available on major exchanges?
Nice article, thanks! Also, I think the right qualifier for Osiris's claim is that it has "the first manufactured stem cell product to gain approval". It is going to be interesting to see how much revenue Osiris gets from the recent approvals of Prochymal in Canada and New Zealand.
Thanks Cybercest, they look like a great stock, and do have good revenues. Though they don't seem to have had positive net income like OSIR, their revenue growth suggests they soon will. I will add them to my watch list.
The company, as I understand it, is taking in revenues, of about $5 million a quarter, which surely offsets their burn rate. With the recent approvals from Canada and New Zealand, as well as approval into Medicare, their revenue will surely increase.