Stem Cell Stocks
Individual Investors
Individual investors as well as institutions and hedge funds love stem cell stocks. There are a number to choose from, and they all offer various products that deal with regenerative medicine. Stem cells can differentiate into other types of cells, and embryonic stem cells (ES cells) have the greatest ability in this regard: they can differentiate into any body cell and can divide indefinitely. Other types of stem cells are limited to a few types of body cells and do not have the ability to divide forever. However, non-embryonic stem cells are not controversial like their ES cell cousins – embryos and eggs are not needed to harvest non-embryonic stem cells.
Currently, there are over 180 firms that describe themselves as being involved in the stem cell industry. One of the industry leaders is Geron, which funded the University of Wisconsin as it developed embryonic stem cells. It owns intellectual property related to cloning, another promising area of research. It lost $9 million in the second quarter of 2011, but still has over $60 in current assets, so it has a little while to right its ship. The founder of Geron, Michael West, went on to create its main competitor, Advanced Cell Technology located in Worcester, Massachusetts. Advanced Cell partners with Celera to study the genes controlled by stem cells.
Two companies that are partnering on stem cell research are BioTransplant and the Australian company Stem Cell Sciences. BioTransplant trades on the NASDAQ (ticker symbol BTRN). It is working on technology that allows the immune system to acclimate to foreign cells, which is very useful when working with stem cells. It is also partnering with MedImmune (MEDI) and has a product in the development pipeline.
An interesting specialty is freezing umbilical stem cells for future use by a child if needed. Parents can use these stem cells to help treat their child should it develop a disease later in life. Cryo-Cell Intl. actually markets this service, and has turned a profit in its latest quarter.
Another firm to consider is Aastrom Biosciences (ASTM), located in Ann Arbor, Michigan. They have tackled a problem concerning stem cells that have been derived from umbilical cords or bone marrow – they are available only in limited amounts. Aastrom is trying to get these stem cells to replicate, thus easing supply problems.
Stem-cell stock investing is not for the meek – many of the firms in this sector will never make a profit. However, one or two will be able to capitalize successfully on their research. Identify these, and you can make a fortune.
