US Stem Cell Inc (USRM)

[Dragon Lady]

Gamida- Look at the valuation they're (big pharma) is giving it, it's not some penny stock. That 15% stake is valuing the company at $250 million or so.

Look at their mgt team- it's top shelf, with actual backgrounds in successful drug development and approval in the past, past big pharma positions, etc. M.D.'s and Ph.D.'s with many of the who's who of big pharma company experience.

http://www.gamida-cell.com/team.asp

Look at the BOD- big time venture capital folks with long backgrounds in raising capital.

Look at the Gamida pipeline- it's broad and deep and they have a completed phase II/III trial- in a what, a "cord blood" methodology involving bone marrow, pretty much the only area the FDA has approved to date (Hemacord). It looks like Novartis is after this highly proprietary cord-blood technology to enhance potential other oncology related stuff that Novartis is building a portfolio of- an area they're looking to round out in their own pipeline/portfolio. Nothing about autologous stem cells in there that I can see? Gamida has a rich patent portfolio it looks like and a lot of original invention.

http://www.gamida-cell.com/products_pipeline.asp

Remember, BHRT does a lot of licensing of other people's tech, versus original research/invention IMO (other than probably their catheter stuff, which doesn't make much money) and most of their past patents have expired (read 10-K/10-Q filings). For instance, they lost the lipicell deal or whatever it was, so they had to go and do a new license "term sheet" now with another firm and just renamed it "Adipocell"- they didn't actually invent it, they just license someone else's stem cell "stuff".

Example: Page 5, Last 10-K filing-
"AdipoCell
Bioheart has successfully completed various trials using adipose stem cells. In August 2013, the Company canceled its license agreement with the Ageless Regenerative Institute for adipose derived stem cells called LipiCell. Bioheart has entered into a term sheet agreement with Invitrx to License their adipose derived stem cell products. Bioheart has changed its adipose derived stem cell product name to AdipoCell. "

Or page 16 same 10-K:
"MyoCell is no longer protected by patents outside, which means that competitors will be free to sell products that incorporate the same or similar technologies that are used in MyoCell without infringing our patent rights. As a result, MyoCell, if approved for use, may be vulnerable to competition. In addition, many of the patent and patent applications that have been licensed to us that pertain to our other product candidates do not cover certain countries within Europe."

Novartis taking an equity stake in this Gamida Cell is hardly comparable to BHRT IMO. What "equity" is there in BHRT to even take? They're diluted out to the max and yet have a total market cap of only about $14 million. What portion of that $14 million market cap and little equity is someone going to be willing to buy? Don't see it happening IMO. Apples to Kumquats IMO.