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Stem Cell Data Jitters Could Presage Big Gains

by Owen Vater | September 4th
Filed in: Stock Sector News

Phase III data could make or break Osiris (OSIR) stock, and one analyst says investors are betting on a coin flip.

Investors are placing final bets on upcoming late-stage trial data from Osiris Therapeutics. The company’s Prochymal is being tested as a treatment for GvHD, a potentially deadly complication of bone marrow transfusions, which, according HealthDay News, can occur in up to 60% of cases involving unrelated donors. According to Reuters, the company, and its investors, are riding on the trial’s success, as Prochymal has disappointed in two previous indications.

The stock dropped by as much as -20% during yesterday’s session, a move Wedbush Morgan Securities analyst Duane Nash attributes to pre-data jitters. He told Reuters, “Everyone was expecting the data this week and are assuming that no news is bad news.” Piper Jaffray analyst Edward Tenthoff thinks the acute GvHD study has a 50% chance at success.

Like in Vegas, when the odds are long, the payoff is big – in this case ten-figures a year big. In a best-case scenario, where Prochymal is effective in GvHD as well as other indications, it has the potential to be a billion dollar earner annually for Osiris, according to the Reuters report.

As a whole, the Stem Cell Stocks Index is ahead by 1% today, but it remains -1% behind the S&P 500 over the last month.

Aastrom Biosciences (ASTM) is trading higher after the company announced a pair of transitions in senior management yesterday evening. George W. Dunbar, the company’s current President, CEO, CFO, and Director, is stepping down from his day-to-day management role to become the Chairman of the Board following the December 14th annual meeting. Current director Timothy M. Mayleben will assume the roles of CEO, President, and CFO, and current Chairman of the Board Nelson M. Sims will become the lead Director.

Geron (GERN) will present at four investor conferences in September, including the Rodman & Renshaw Healthcare Conference and Thomas Weisel Partners Healthcare Conference next week.

Neuralstem (CUR), Opexa Therapeutics (OPXA), and StemCells (STEM) are the sector’s only winners over the last week.

As of this writing, the Stem Cell Stocks Index is down fractionally over the last month. It has a long way to go before cracking into are tickerspy’s top-50 performers for the period, as many sectors have rallied by double-digits.


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5 Responses to “Stem Cell Data Jitters Could Presage Big Gains”
  1. Mervyn Fonseca Says:

    I have serious ethical and moral objections to embryonic stem cell research and

    cannot honestly invest in any company involved with that. I have confidence in

    reports that adult stem cell research is as or even more promising. Of the

    companies listed above, please do me a favor and advise which are involved in

    adult stem cell research. Thanks.

  2. asher yahav MD Says:

    What about BCLI (brainstorm )?

  3. Jeff Sampson Says:

    People that are just completely against embryonic stem cell research just do not have the total and complete picture of what it really and truly is and what it is not.

    Emotions get in the way,instead of the open mind and ability we all have to see the full view.

    Emotions more often then not is what causes so many investors to lose money or to fail completely in the market, the same applies to this research!

    Please let me make myself clear. I do very much respect each and every persons right of opinion but please gather complete facts before you decide your just against it, it could be you, one of your family members etc that could be saved from this very research so keep an open mind and gather the facts, don’t just listen to all the hype and garbage in the media and other tainted opinions!

  4. fasthollywood Says:

    There are OVER 5000 Stocks that you can invest in.

    If YOU have ANY OBJECTIONS to any products that any company manufacture, sell, advertise or promote, then MOVE ON.

    Your beliefs and morals have NO PLACE in the calculations of a profit to be gained when investing in ANY equity.

    Please keep Religion and Moral Belief comments to the appropriate message boards.

    Thank You

  5. Mervyn J. Fonseca Says:

    I lost touch with this e-mail and the comments associated. I have just now seen the responses to my comment and I have to respond to them.

    Those who suggest that my request for information was out of line because it was emotional, without grasp of the facts, or brought Religion and
    Moral Belief to the wrong message board are themselves acting in irrational fashion.

    My comment was strictly a request for more information for myself. I did not seek to indict anybody else’s views, and what I believe is nobody else’s business.

    To fasthollywood: Since you brought it up, let me ask you: Were Hitler and the Nazi doctor Josef Mengele justified in conducting horrific experiments on death-camp inmates to promote genetic engineering?
    The point is that the ends do not always justify the means. It is not right to create stem cells for research which essentially means killing potential human beings, no matter how good the end results are.
    I did not seek to impose my views on you, yet you are acting like a Nazi, telling me what I can and cannot write in a public forum.

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