Tuesday, February 03, 2009

Federally Approved Stem Cell Therapy: Time to Look at Stem Cell Stocks


Since President Obama has decided to repeal the limitations imposed on embryonic stem cell research, and since the first federally approved human study utilizing embryonic stem cell therapy is now taking place, investors are now looking at opportunities in stem cell stocks. Extensive research is being done to utilize stem cells for gene therapy and the treatment of multiple sclerosis, Parkinson’s disease, heart disease, diabetes, arthritis, and many other medical conditions.

A source of stem cells is cord blood, the blood from an umbilical cord. The saving and storing of cord blood has become a fast growing business. For example, Richard Branson, founder and head of Virgin Records and Virgin Atlantic Airways, set up a cord blood bank. Even Stem Cell Bonds were issued by the state of California last year. Also, the National Institute of Health has discovered that strong stem cells can be found in baby teeth.

Here are several stocks, which are pure plays or semi-pure plays in the stem cell business.

Alexion Pharmaceuticals (ALXN) is a Connecticut based company with a $2.9 billion market cap that is involved in the development of biologic therapeutic products for the treatment of hematologic and cardiovascular disorders, auto-immune diseases, and cancer. The stock has a forward PE of 444.

ARIAD Pharmaceuticals (ARIA) is a Massachusetts based company, with a $150 million market cap, that is involved in the development of treatments for cancer by using small molecules to regulate cell signaling. Their cancer products are used to treat solid tumors, sarcomas, hormone refractory prostate cancer, and endometrial cancer. The stock has generated negative earnings of $1.01 per share. It is a low cap stock and should be considered very speculative.

Celera Group (CRA) is a company that was founded in 1937. It is involved in the research of new diagnostic markers, using proprietary genomics and proteomics discovery procedures and diagnostic products. Some of their products are used for the detection of HIV, hepatitis C, and cystic fibrosis. They are in collaboration with Abbott Laboratories (ABT), Genentech (DNA), and General Electric (GE). The stock has generated negative earnings.

Cellgene (CELG) is a $24 billion market cap company involved in the discovery and production, of therapies designed to treat cancer and immune-inflammatory-related diseases. One of their main products is Thalomid, which is used for the treatment of erythema nodosum leprosum, a complication of leprosy. They also received patent on placental stem cell recovery. The stock has recently generated negative earnings.

Cytori Therapeutics, Inc. (CYTX) is a $125 million market cap company that makes and markets regenerative medicine medical technologies. They have recently generated negative earnings. This is a low cap stock and should be considered very speculative.

Dendreon Corporation (DNDN) This $358 million market cap company is involved in the discovery, development, and sales of active immunotherapies, monoclonal antibodies, and small molecule product candidates to treat cancer. They also manufacture the DACSÒSC stem cell enrichment device. The stock has had negative earnings.

Geron (GERN) is a Menlo Park, California based $600 million market cap company which develops cell-based therapies derived from human embryonic stem cells used for the treatment of various diseases and medical conditions such as spinal cord damage, heart failure, and diabetes. They have the first federally approved human study utilizing embryonic stem cell therapy. The stock has had negative earnings.

Integra Lifesciences Holdings (IART) is a New Jersey based $781 million market cap company that develops, manufactures, and sells medical devices, implants, biomaterials, and instruments to the stem cell, surgery, and soft tissue repair markets. Their P/E is 40, and the PEG is 1.01.

Invitrogen Corporation (IVGN) is a California based $3.3 billion market cap company which sells products and services to research institutions, pharmaceutical companies and biotechnology companies, including tools for gene acquisition, gene cloning, and gene analysis techniques. The stock has a P/E of 52.

Neuralstem Inc. (CUR) is a $52 million market cap company that develops and markets human neural stem cell technology. They have recently generated negative earnings. This is an extremely low cap stock and should be considered extremely speculative.

Osiris Therapeutics, Inc. (OSIR) is a $660 million market cap company, which markets stem cell products from adult bone marrow. They have recently generated negative earnings.

StemCells Inc. (STEM) is a $195 market cap company involved in the development, and marketing of cell-based therapeutics to treat liver diseases and diseases of the central nervous system. They have recently generated negative earnings. This is a low cap stock and should be considered very speculative.

For an Excel database of stem cell stocks which you can download, sort, and change, go to WallStreetNewsNetwork.com.

Also, check out gene therapy stocks and cord blood stocks

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

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