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RegMed Daily Dialogue, 7/12/11, which risk switch is on or off, a macro or micro day?

The 6 W’s: Who, what, where, when, why and what of it…

 

 

Futures had pared some of their losses as news that Italy successfully sold 6.75B Euros ($9.4B) of 12-month treasury bills.  I just got over Greece and now ITALY … is holding … us up! US stock are recovering a lot of their losses on Tuesday morning as the euro climbed out of an earlier hole and European debt-crisis contagion fears eased just a bit. US equity markets are turning higher but bouncing between minor gains and losses on Tuesday, 7/12/11 after logging slight gains earlier in the day. The DOW is back in positive territory … and the NASDAQ is off slightly.

Regenerative medicine/stem cell universe is “HANGING TOUGH” but continues to float on volitility issues on 7/12/11 … But, it doesn’t take much to chase out the shorts … The NASDAQ is DOWN -10.28 (-0.37%) to 2,792.34.  The Dow is UP +0.97 (+0.02%) from 23.62  to 12,507.73.  My newest mantra …staying above 12K is still soothing … 

 

Athersys (NASDAQ:ATHX), Brainstorm (NASDAQ:BCLI), BioMimetic (NASDAQ:BMTI), Cytori (NASDAQ:CYTX), Fibrocell Sciences (NASDAQ:FCSC), ImmunoCellar (NYSEMKT:IMUC), NeoStem (AMEX: NBS), ReNeuron (LSE: RENE.L), ThermoGenesis (NASDAQ:KOOL), Opexa (OPXA), Tengion (TNGN) are up

 

Today’s Sermon: Every time I get depressed about contagion; am I making too much of this …? But … I am BUYING dips … today!

 

What’s driving the regenerative medicine/stem cell market …

  

Cytori Therapeutics (CYTX) completes Equity Agreement: Funding to support ADVANCE clinical trial and corporate initiatives. CYTX entered into an equity purchase agreement with Seaside 88, LP (‘Seaside’). As part of the agreement, Seaside completed the purchase of 1.3M common shares at $4.52 per share for gross proceeds of $6M and committed to purchase an additional 5M shares of common shares over a 9 month period beginning 8/12. The purchase price for the initial closing of the transaction was determined by a 12% discount to the trailing 10 day volume weighted average share price of $5.14. Each future closing of 250K shares will be determined by a 9.75% discount to the weighted average trailing price at that time and occur biweekly beginning 8/12 until either the total 5M shares are acquired or the agreement is terminated.  The bottom line, It was NOT a bad move – ($4.52 a share) with these market dynamics … entering into this structure deal at this market pricing. CYTX in 2009-10 sold 7M shares over a 12 month period to raise $30M; the stock had then gone for $3.50 to over $8.00. CYTX had needed flexibility then and RE-USED this existing Seaside structure … Rather then raise ALL the money at a THIS valuation; they entered into the structure deal – AGAIN. CYTX has reserved the right at any time to terminate the agreement without penalty as circumstances change. CYTX had $43M at the end of Q1/11. So … basically, a CHEAP rate … CYTX is trading UP at $0.04 to $5.25 a 0.73% increase – so far (11 EST)!  Expect … a few milestone developments to support this raise! The funding will facilitate the ADVANCE European pivotal trial and the proceeds from the offering will be used to support efforts to initiate a US cardiac clinical trial, achieve a European indication-for-use for the Celution(NYSE:R) System in treating no-option chronic myocardial ischemia patients, obtain Celution(R) System regulatory approvals or clearances in additional countries and POTENTIALLY … achieve a significant strategic partnership.    

 

Science Brief: Liver cancers embedded with super cancer stem cells are resistant to chemotherapy: Liver cancer stem cells are troublesome because they are responsible for growing tumors, making them spread, drug-resistant and so hardy that they recur even after they have been surgically removed. The bottom line, the discovery, published in the journal, Cell Stem Cell, is important because it means these stem cells can be targeted in their fight against liver cancer, a major blight in China and southeast Asia.10% of China’s population carry the hepatitis B virus, a key cause of liver cancer. There are 500K new cases of liver cancer worldwide a year, over 50% in China. CD24 is like a button, a switch on some cancer stem cells. Once they are switched on, they activate a protein in the cell called STAT3. In this experiment, researchers (Irene Ng, pathology professor and director of the State Key Laboratory for Liver Research at the University of Hong Kong) found that mice that were implanted with liver cancer enriched with CD24 cancer stem cells were resistant to chemotherapy. They then injected 2 colonies of liver cancer cells – 1 with CD24 stem cells and the other without – into separate parts of the liver of the same mouse. That part of the liver with CD24 cancer stem cells grew cancer and the cancer spread to the lungs. But not the other parts of the liver without CD24 cancer stem cells. STAT3 goes into the nucleus of the cells and carries out its functions, which are to form tumors, spread and be drug resistant. When researchers inhibited the function of STAT3, they block the function of cancer stem cells.