In February shares of US Stem Cell Inc (OTCMKTS:USRM) morphed from a quiet little company to an investment. I believe it can be traced back to a white paper done by Chief Scientific Officer, Kristin Comella. Her conclusions drew a new light on the value prop.
“Effects of the intradiscal implantation of stromal vascular fraction plus platelet rich plasma in patients with degenerative disc disease” was published in the January volume of the Journal of Translational Medicine. The study focused on the implantation of stromal vascular fraction (SVF) in patients suffering from degenerative disc disease. Patients underwent a local tumescent liposuction procedure to remove approximately 60 ml of fat tissue from the abdomen. The fat was separated to isolate the SVF and the cells were delivered directly into the damage discs. Patients were monitored for a period of 6 months post-treatment, noting considerable decreases in pain and increases in flexion.
If you look at the chart below it ignited the value proposition for this as an investment, and shares moved from a triple zero sub penny to .12 cents on big volume. This catalyst moved this stock 10x higher and bumped the valuation (market cap) from $3 million to $33 million.
US Stem Cell Inc (OTCMKTS:USRM) is a leader in novel regenerative medicine solutions and physician-based stem cell therapies for human and animal patients, and as a result of the share price move the company was able to secure operating capital in the form of a commitment to invest up to $5,000,000 from private equity firm General American Capital Partners LLC (GACP) in exchange for up to 63,873,275 shares of common stock.
“We see exponential growth in the stem cell industry, estimated to grow to $170 billion by 2020,” said Joseph DaGrosa, Jr., a Principal with General American Capital Partners. “We are very pleased to join forces with U.S. Stem Cell, Inc., a leader in regenerative medicine solutions, to help expand our role in this important market.”
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$USRM 10-Day Chart Below:
The 21st Century Cures Act, signed into effect in December of 2016, builds on the FDA’s ongoing efforts to advance medical product innovation and ensure that patients get access to treatments as quickly as possible, with continued assurance from high quality evidence that they are safe and effective.
“Patient demand for regenerative medicine procedures as a viable alternative to surgery, as well as the transformative capacity of stem cell therapies, are leading the way to increased acceptance by both the medical and regulatory communities,” said Mike Tomas, President and CEO of U.S. Stem Cell, Inc.
US Stem Cell, Inc. (formerly Bioheart, Inc.) is an emerging enterprise in the regenerative medicine / cellular therapy industry. They are focused on the discovery, development, and commercialization of cell based therapeutics that prevent, treat, or cure disease by repairing and replacing damaged or aged tissue, cells and organs and restoring their normal function. They believe that regenerative medicine / cellular therapeutics will play a large role in positively changing the natural history of diseases, ultimately, we contend, lessening patient burdens, as well as reducing the associated economic impact disease imposes upon modern society.
USRM is broken down into 3 main areas (US Stem Cell Training, Vetbiologics, and US Stem Cell Clinic) which includes the development of proprietary cell therapy products, as well as revenue generating physician and patient based regenerative medicine / cell therapy training services, cell collection and cell storage services, the sale of cell collection and treatment kits for humans and animals, and the operation of a cell therapy clinic. Management maintains that revenues and their associated cash in-flows generated from our businesses will, over time, provide funds to support our clinical development activities, as they do today for our general business operations.
The trick now will be to keep shares up through good execution and keep the common shareholders intact. The lender now has many shares to sell if needed, but the intent is not to have this stock be a penny stock, we will see if they can accomplish this. For continuing coverage on shares of $USRM stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!