Friday, August 31, 2007 4:51:18 PM
A Stem-Cell Primer
By Brian Orelli August 31, 2007
While President George Bush is adamantly opposed to establishing new embryonic stem-cell lines, states including California, Connecticut, and most recently Illinois have passed laws allowing public funding of stem cells.
While most of the money goes to researchers at academic institutions, companies working on stem-cell therapies should also benefit from the increased spending. They could take advantage of the money directly by setting up collaborations with academic labs, but they could also benefit by using the knowledge gained by researchers to their advantage. Here's an initial look at some of the companies that should be able to profit from the increased public spending.
But first, what is a stem cell?
There are essentially two kinds of stem cells: embryonic and adult. All the cells in your body originated from a single cell. The process of creating skin, muscle, and all the other types of cells is known as differentiation.
As the name implies, embryonic stem cells (ESCs) come from embryos. Just like an embryo, ESCs have the ability to become any type of cell, if given the right signals to differentiate.
Adult stem cells are partially differentiated cells on their way to becoming certain types of cells. For instance, hematopoietic stem cells are capable of creating the different types of blood cells, but couldn't become a skin or a lung cell.
Advancing the science
There are a lot of companies working on different aspects of stem cell research. Here's some highlights from a couple to get you started on your research:
Geron (Nasdaq: GERN) is working with ESCs to try to repair tissue damaged because of disease or injury. Its most promising work has been developing cells to regenerate spinal cords, which it expects to begin testing on humans next year, and the heart, for which it recently published preclinical data.
StemCells (Nasdaq: STEM) is also working on therapies for regenerating spinal cords, but it has decided to focus on adult stem cells derived from brain tissue. It has also discovered adult stem cells that are precursors to liver and pancreas cells, which could be used to treat disease in those organs.
Osiris Therapeutics (Nasdaq: OSIR) has one product on the market, Osteocel, which contains bone stem cells and is used by orthopedic surgeons to mend bones. It's not a pure stem-cell product, but it's a nice first step. The company's lead clinical candidate, Prochymal, is in phase 3 trials for steroid-refractory acute Graft vs. Host Disease (GVHD).
Preparing for the future
There are stem cells all over one's body and even in umbilical cords. Whether stem cells from umbilical cords can be useful for treating a disease later in the life of the newly born child is anyone's guess -- in case you're wondering, my guess is yes, although maybe not in my lifetime.
ViaCell (Nasdaq: VIAC) is trying to take advantage of people's optimism about stem cells with its ViaCord umbilical cord blood storage service. The business plan is fairly straightforward: The company collects blood from umbilical cords and stores it -- for a fee -- until it's needed and, more importantly, there's actually a method to use stem cells to the patients' advantage.
ViaCell has yet to make a profit because of the high costs of advertising to all those expectant mothers, plus trying to push stem-cell research further along by running research of its own. But it looks as though things are about to turn around for the company. The advertisements are paying off -- sales are up -- and it's cutting back on costs, including research and development, in the hopes of becoming profitable in the first half of next year.
The biggest risk with ViaCell and its archrival, Cryo-Cell, is that they're banking on stem cells being useful for something. ViaCell will only be able to continue to make a profit if parents believe that paying for storage will help their little John or Jane in the future. Thus, more than anything, I'd say the news about stem cells will drive sales and thus the stock price of this company.
A safer play
I know what you're thinking: "The word 'safe' shouldn't be anywhere in an article about stem cells, unless it's referring to where the companies should keep the large stash of cash they use to finance their burn rates." But one company should be able to make money off stem cells even if a stem-cell drug is never developed.
Invitrogen (Nasdaq: IVGN) designs and sells reagents to laboratories, including a wide array of products to help researchers grow and differentiate stem cells. One of its newest offerings, STEMPRO hESC SFM, is a revolutionary medium that allows embryonic stem cells to grow while maintaining their pluripotency -- the ability for them to become different types of cells. Both companies and academic researchers will use the medium to grow stem cells in the laboratory.
The stem-cell reagents aren't going to blow the top off Invitrogen's revenue -- it is a rather large company, after all. But for an investor who wanted to be involved in stem-cell research without worrying that the technology might never come to fruition, this would be a good company to investigate further.
Long-term investment
A stem-cell drug is still far from a sure thing. But then, so were biotech drugs in the 1970s. That hasn't kept investors in Genentech (NYSE: DNA) or Amgen (Nasdaq: AMGN) from making a lot of money over the years. The key is to realize that you're investing in an unproven technology. If you take a long-term approach and keep the sector to a reasonable fraction of your portfolio, stem cells could do more than just extend your life -- they could also make it more profitable.
Recent PARA News
- BET AND THE NATIONAL PAN-HELLENIC COUNCIL JOIN FORCES TO MOBILIZE BLACK VOTERS FOR THE 2024 ELECTION • PR Newswire (US) • 09/19/2024 02:57:00 PM
- Your Voice is Your Vote. BET Media Group, National Urban League, NAACP, and Other Partners Aim to Drive Awareness and Registration This National Black Voter Day on September 20th • PR Newswire (US) • 09/18/2024 01:30:00 PM
- SHUT UP! Ocean Spray® Introduces Mean Girls x Zero Sugar Collaboration in Celebration of the Film's 20th Anniversary • PR Newswire (US) • 09/18/2024 01:00:00 PM
- Comic Relief US Harnesses the Power of Music to Inspire Change in First-of-its-Kind Roblox Music Festival for Next Gen Leaders, Beginning Today • PR Newswire (US) • 09/13/2024 04:01:00 AM
- Shopsense AI Shoppable Lens Debuts at the 2024 MTV Video Music Awards ("VMAs") • Business Wire • 09/11/2024 01:00:00 PM
- NICKELODEON TO DEBUT BRAND-NEW PAW PATROL® AND DORA ELEMENTS AT THE 98th MACY'S THANKSGIVING DAY PARADE® • PR Newswire (US) • 09/10/2024 03:00:00 PM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- HBCU Buzz, BET, Live Nation Urban and When We All Vote Launch Vote Loud: HBCU Voter Registration Challenge • PR Newswire (US) • 09/05/2024 03:21:00 PM
- PEPSI® KICKS OFF 2024 NFL SEASON WITH COLOSSAL CAMPAIGN INSPIRED BY PARAMOUNT PICTURES' UPCOMING "GLADIATOR II", STARRING MEGAN THEE STALLION AND NFL SUPERSTARS JOSH ALLEN, DERRICK HENRY, JUSTIN JEFFERSON, AND TRAVIS KELCE • PR Newswire (US) • 09/05/2024 01:00:00 PM
- NICKELODEON ADDS MODERN FAMILY TO NICK AT NITE'S COMEDY LINEUP BEGINNING MONDAY, SEPT. 9 • PR Newswire (US) • 09/03/2024 03:00:00 PM
- PARAMOUNT+ NOW AVAILABLE ON PLAYSTATION®5 CONSOLE IN CANADA • PR Newswire (Canada) • 08/28/2024 01:58:00 PM
- Comic Relief US and Nickelodeon Power Up the Next Generation With 2nd Annual Kids Relief Campaign • PR Newswire (US) • 08/27/2024 12:00:00 PM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- PARAMOUNT GLOBAL'S SPECIAL COMMITTEE ANNOUNCES END OF "GO-SHOP" PROCESS • PR Newswire (US) • 08/27/2024 02:22:00 AM
- IBM Closes China Research Division, Uber Fined $324M, Starliner to Return Without Astronauts • IH Market News • 08/26/2024 12:58:21 PM
- Cruise and Uber Join Forces for Robotaxis, Alibaba Shifts Primary Listing to Hong Kong, Altria Hikes Dividend 4.1% • IH Market News • 08/23/2024 12:20:26 PM
- Schwab and Snowflake Retreat in Premarket, WeRide Postpones IPO, Halliburton Cyberattack, McDonald’s Instagram Hack • IH Market News • 08/22/2024 09:37:42 AM
- PARAMOUNT GLOBAL'S SPECIAL COMMITTEE ANNOUNCES RECEIPT OF ACQUISITION PROPOSAL AND 15-DAY EXTENSION OF "GO SHOP" PERIOD TO CONTINUE ENGAGEMENT • PR Newswire (US) • 08/21/2024 11:37:00 PM
- Berkshire Reduces Stake in BofA, Hawaiian Airlines Soars 10%, Paramount Receives $4.3B Offer, and More • IH Market News • 08/20/2024 09:56:02 AM
- FuboTV Soars 12% After Venu Sports Block, Goldman Sachs Lowers U.S. Recession Odds, BHP Ends Chile Strike • IH Market News • 08/19/2024 09:28:19 AM
- Deutsche Bank Faces Shareholder Backlash, Bank of America Sponsors 2026 World Cup, Quanterix CEO Buys More Shares • IH Market News • 08/16/2024 10:03:21 AM
- UBS Beats Earnings Forecasts, Intel Divests Arm Holdings, Flutter Surges 9% in Premarket Trading, and More • IH Market News • 08/14/2024 09:56:35 AM
- Home Chef Joins Forces with PAW Patrol® to Bring Adventure to the Family Dinner Table • PR Newswire (US) • 08/12/2024 02:02:00 PM
- Starbucks Rises 3%; Disney Unveils New Films and Expansions; Uber CEO Questions Tesla Robotaxi Viability, and More • IH Market News • 08/12/2024 09:46:16 AM
- Sweetgreen Rises 22% on Raised Forecasts, Doximity Jumps 30%, Rocket Lab Soars 14% on 71% Revenue Growth, and More • IH Market News • 08/09/2024 09:48:54 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM