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Re: Gastrodamas post# 26653

Wednesday, 12/22/2010 3:04:39 PM

Wednesday, December 22, 2010 3:04:39 PM

Post# of 92948
Advanced Cell Technology (ACTC) and the Critical ComparisonsPossibilities, Speculation and Reality Continue to Drive ACTC Stock Price12.21.2010– Advanced Cell Technology (“ACT”) has certainly been at the forefront of biomedical stock discussions, especially when it comes to any talk regarding stem cell therapies and the promise that these technologies hold for the future of mankind, not to mention shareholders of the Company.
http://www.pitchengine.com/advanced-cell-technology-actc-and-the-critical-comparisons/111756/
The speculation is, of course, incredible. Advanced Cell Technology is only the second company in history to be approved for stem cell research in humans using embryonic stem cells. That is the fact for which most are aware. Stargardt’s Macular Dystrophy represents serious market penetration with regards to revenues, as it affects approximately 30,000 Americans, but other forms of macular degeneration affect 30 to 40 million people worldwide which represents much greater revenue potential for the Company. Where true speculation enters the picture, however, is with the things that are unknown with ACT and the true developmental possibilities that can be coming in the future. The Company is obviously very focused on its direction, but investors would be a bit naive to believe that macular degeneration and other publicized inner workings, such as research in organ creation and blastomere technologies, are all that the scientists at ACT are presently researching.

Rather than spending too much time focused on endless possibilities, sometimes it is more pertinent to address questions at hand right now. The ACTC share structure has been questioned repeatedly with many critics speaking unfavorably about “too many shares outstanding." This can best be handled by taking a look at a few industry leaders and their share structures. The facts about Advanced Cell Technology (OTCBB:ACTC, $0.23/share) are that it has 1.1 billion shares outstanding, approximately a $250 million market cap and less than $1 million in debt. Pfizer, Inc. (NYSE:PFE, $18/share) has 8 billion shares outstanding, a $138 billion market cap and $44 billion in debt. Eli Lilly (NYSE:LLY, $35/share) has 1.1 billion shares outstanding, a $38 billion market cap and $7 billion in debt. Novartis (NYSE:NVS, $58/share) has 2.29 billion shares outstanding, a $135 billion market cap and $27 billion in debt.

Although not meant to be a direct comparison to these industry leaders, as by no means is Advanced Cell Technology established as companies such as Pfizer, Eli Lilly or Novartis, the point is that many biotechnology companies carry a large amount of outstanding shares without an issue. Quite simply, the revenues that are generated by successful pharma companies can carry the load with ease. What makes those large pharma successful is a major market presence in several categories that allows them to capture a large portion of market share in several different capacities through their pharmaceuticals.

Although still at the beginning of clinical trials, ACT is ahead of the pack in many categories that certainly give the appearance of being “the wave of the future” and in incredible demand in years that are close ahead. If potential investors and current shareholders alike truly want to speculate about the potential of Advanced Cell Technology, perhaps the speculation should be focused on what these multi-billion dollar companies are willing to spend to acquire the technologies of ACT. It cannot be contested that ACT holds 50% of all FDA approvals regarding clinical stem cell trials and is in a prime position to take that percentage level to 66% if the recently filed IND for Dry AMD is approved. It also cannot be debated that the ACTC share structure is comparable to major pharmas and that the Company is carrying exponentially less debt. With major acquisitions each year totaling well into the billions as big pharma, who notably lack research and development abilities, look continuously to acquire technologies from smaller, developmental biotechs, the real question may be not as to what a company will spend for another new drug, but what will they spend to move to the head of the industry?


Comments
Shannon says:
Who wrote this? I'm seeing a lot of articles promoting the stock and company without any reference or individual to track it back to. In addition, they reduced debt by most recently converting debt to shares and have another 200 million ready to unload. Go to sec.gov and you'll see this. How will they finance the 6-10 years it's going to take to see this trial to the FDA board? Unless fast tracked of course. I don't think I've seen many legit biotechs unload so many common shares this early in trials. All of the promotions are making me money, but I'm not seeing a lot of references. Most of the promotions are from penny stock promoters. I wish Forbes or the big dudes would weigh in on this. After reading their 10k you can see the "1 million" in debt is only one portion of their debt...they have other debtors to pay unless my 10 years of reviewing financials is off... I do my DD and I'm not going to buy more shares.
Bud Rante says:
Very interesting comparison. I totally agree with you.If I was a giant pharma,I will not waste time in acquiring this stem cell biotech companies specially at this time and age. Asia and Europe are way ahead in stem cell treatments now. It's been proven that it is very effective. If we( here in America ) continue to think the old way of treating this untreatable diseases and not open our doors with stem cell therapy. We will be the THIRD WORLD COUNTRY of generics. We better wake up and pursue this amazing modern way of treatments. I believe ACTC will lead and pave the way in stem cell treatments. Sincerely, Bud Rante
larry harris says:
Read this
Joe says:
Thanks for the quality information. I suffer from Dry AMD and looking forward to the results. From what I have heard so far, ACT technology seems to be the best in the industry. Hopefully everything works out - I know I would be willing to give it a shot.
Mike Sweeney says:
Shannon, It was written by one of my writers at ProActive Capital. You raise some interesting concerns that will certainly be addressed by a new CEO after Bill Caldwell's untimely death. As a point of reference, I follow this company as a client obviously, but also as a parent of an Autistic child. ACTC is NOT doing research in Autism, but I do understand the longer term possibilities. We will have more information to address your questions after the holidays. Thanks. Mike Sweeney ProActive Capital
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Advanced Cell Technology (ACTC) and the Critical Comparisons

News Facts
30,000 Americans suffer from Stargardt's Macular Dystrophy.
30 to 40 million people worldwide suffer from macular degeneration.
Advanced Cell Technology has less than $1 million in debt. Pfizer has $44 billion, Eli Lilly has $7 billion and Novartis has $27 billion.
Resource Links
Advanced Cell Technology @ ProActive NewsRoom
Advanced Cell Technology Website
Stargardt Disease on Wikipedia
Tags
Advanced Cell Technology, ACTC, stem cell research, embryonic stem cells, acquisitions, Dry AMD, Stargardt's Macular Dystrophy
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