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Scimitar Equity Issues Q3/10 Analyst Review for Aastrom Biosciences (ASTM)

Scimitar Equity, LLC has issued a review of Aastrom Biosciences, Inc. (NASDAQ:ASTM) entitled, “Three (3) Late Stage Trials Focus the Future Stock Appreciation”.  Scimitar Equity maintains a BUY ranking.   This review is available at website: ASTM Q3/10 Review

ASTM is targeting niche cardiovascular indications: critical limb ischemia (NYSE:CLI) for no option (400 K) patients which have an orphan drug designation and dilated cardiomyopathy (DCM) with (150 K) patients in the US alone.

  • Conducting 3 late staged trials; IMPACT-DCM trial, a P2 (cardiac regeneration) with surgical delivery of TRCs in patients with dilated cardiomyopathy (DCM) leading to severe chronic heart failure); DCM P2 trial with catheter delivery of TRCs and the RESTORE-CLI trial, a P 2b (vascular regeneration) in patients with CLI (critical limb ischemia),
  • Compelling efficacy, safety results and anecdotal data provide a strong signal of the therapeutic benefit of autologous cell therapy in patients with critical limb ischemia (CLI),
  • The blended valuation model implies a pricing of $3.82 given the fully diluted shares outstanding.  The Sum of the Parts estimation of $5.71 is discounted 20% and is significantly above this stocks current price of $1.66. 

A … BUY … ranking believing that ASTM’s stock is held at an extremely low stock price in relation to the market comps and 3 advancing clinical trials but will appreciate as clarity of impending trial results, partnering opportunities and the regulatory pathway evolves.

Shares of ASTM closed on 5/12/10 at $1.66 with a market cap of $46.91. ASTM offers upside in the short and near term but, markets remain volatile based on the recent conflagration.