The Bottom Line: The patents cover 3 new chemical entities (compounds) and include both structure and method claims for inducing neurogenesis and the growth of new neurons, both in-vitro and in-vivo. They state their proprietary neural stem cell technology allows for a unique window into the process of neurogenesis not just brain chemistry. AMEX: CUR also has articulated their ability to generate stable human neural stem cell lines suitable for the systematic screening of large chemical libraries. The question lingers, can CUR identify further neurogenic and neuroprotective compounds by screening against cells to identify novel, patentable compounds, across “their” diverse chemical library. The current value position is based on:
- P1 (safety) trial for amyotrophic lateral sclerosis (ALS) or Lou Gehrig’s disease has been awarded orphan status designation by the FDA. After reviewing the safety data from the first 12 patients, all of whom received injections in the lumbar region of the spine only, the trial’s Safety Monitoring Board (BATS:SMB) has unanimously approved advancing the trial to transplantations’ in cervical region. The next 3 patients, all of whom are ambulatory, will each receive 5 injections, unilaterally, in the cervical spinal cord. In addition to the SMB approval, the FDA must also approve the trial’s moving to the next level of transplantations;
- P1a (safety) trial evaluating NSI-189, its neurogenic small molecule compound for the treatment of major depression;
- CUR has also submitted an IND (Investigational New Drug) application to the FDA for a P1 (safety) trial in chronic spinal cord injury.
Neuralstem (AMEX: CUR) closed at $1.50 up 9.49% or $0.13 on 7/14/11. AMEX: CUR’s market cap of $72.73M is offset by an enterprise value of $57.88M. Their float of 43.57M reflects a decreased short interest of 1.63M from 3.86M shares. Volume on 7/14/11 was 145K versus a 10 day average of 167K. With multiple trials going on; it is suspect that there is only 8.55M in the till. One good point, insiders own 8% and institutions own 10-11%. In technical analysis, CUR is following a Bearish Harami, a pattern or indication that the previous upward trend is coming to an end. Prognostication: HOLD.