Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Case Summary For VistaGen Therapeutics, Inc. (VSTA)

|Includes: VistaGen Therapeutics, Inc. (VTGN)

VistaGen Therapeutics is a California biotechnology company focused primarily on the use of its proprietary pluripotent stem cell technology to discover, rescue, and develop novel drug candidates for a wide range of diseases.

The core of the company's strategy is the use of its Human Clinical Trials in a Test Tube stem cell based platform that is designed to function as a superior assay system for determining heart or liver toxicity right in the laboratory, prior to lengthy and expensive animal tests or clinical trials. With this advanced and accurate technology, exclusive to VistaGen, the company plans to identify and develop a broad pipeline of drug rescue variants from small molecule drug candidates that were shelved due to toxicity concerns but which can now be re-evaluated and potentially modified to generate variants that are both effective and safe.

Such a technology, once perfected, represents a potentially massive market due to the astronomical costs involved in developing and bringing a new drug to market, a process that can burn through billions of dollars for a single drug. After investing so much time and money, it's not unusual for a drug to ultimately fail due to toxicity issues that didn't show up in early testing. All of this has put the pharmaceutical industry under tremendous pressure, slowing the approval process, reducing drug pipelines, and threatening billions of dollars in market share.

VistaGen's advanced cell technology represents significant leverage in the development process, a leverage the company intends to use to help the pharmaceutical recover prior investment in discontinued drugs with positive efficacy data. The company believes that each such drug will have the potential to be a new drug candidate in which they can have economic participation rights (upfront and development milestone payments and royalties on commercial sales).

For additional information, visit

Please see disclaimer on the QualityStocks website: