Vitro Diagnostics (OTC-BB & OTC-QB: VODG) Provides Backbone to the Stem Cell Industry
By Justin Kuepper on Tuesday, September 28th, 2010
As stem cell companies ranging from Aastrom Biosciences, Inc. (Nasdaq: ASTM) to Geron Corporation (Nasdaq: GERN) maintain attractive valuations developing stem cell treatments, investors looking for real growth may want to take a look at companies providing the underlying infrastructure that supports the booming industry like Vitro Diagnostics, Inc. (OTC-BB: VODG & OTC-QB: VODG)
Vitro Diagnostics, Inc. develops, manufactures and distributes tools for stem cell and drug development, which include adult human stem cell lines, cell line derivatives and medical devices necessary to support applications of these products in mesenchymal stem cell research, development of induced pluripotent stem cells and stem cell therapy of cancer.
One of the company’s most successful products is its stem cell culture media, which is essentially the liquid material in which stem cells are grown in a laboratory as a virtual substitute for blood. Vitro is targeting the stem cell segment of the total biotechnology media market which represents $820 million portion of that market and is projected to grow to $1.2 billion in 2015. Vitro’s stem cell media is among the most competitive in the industry with a longer shelf life and greater effectiveness than existing products on the market in numerous tests conducted by the company and third party research labs.
Vitro Diagnostics also recently partnered with HemoGenix, Inc., a privately held firm, to target the growing stem cell testing industry. HemoGenix has a 10-year operating history providing market leading products and services needed to measure stem cell quality, potency and response to toxic agents. The partners now produce & market high-performance stem cell assay kits for an expanded menu of several types of stem cells, which they hope will become an industry mainstay, with unparalleled competitive advantage, performance and pricing. The emerging industry for tools targeting stem cell research and stem-cell derived cellular systems for drug discovery and development is estimated to represent a $4 billion per year global market with a 22% compound annual growth rate.Finally, potential investors may also want to take note of the company’s recent addition to their management team. Mr. Richard Huebner has been appointed to the Board of Directors of the company, bringing 30 years of funding and capital structure experience to the firm. As a principal of the investment bank, GVC Capital, Mr. Huebner also has experience in investment banking, mergers and acquisitions, which could result in merger and acquisition opportunities for Vitro Diagnostics, Inc.
Looking ahead, Vitro Diagnostics plans to continue focus on its media segment, which has produced the majority of its growth historically. The company recently stated they are in discussions with groups who have the ability to distribute these products globally, which could create significant revenue opportunities over the near-term, while it also expects its HemoGenix partnership to continue growing.
Growth investors looking for a new angle in the stem cell industry are researching Vitro Diagnostics, Inc. (OTC-BB/OTC-QB: VODG) as a way to benefit from the industry’s growth without placing all bets on a single treatment or indication. Furthermore, Vitro is largely focused on adult stem cells and is less affected by the controversy and potential obstacles surrounding embryonic stem cells than other companies.
