NeoStem: A Stem Cell Company Worth Watching
One area of medicine that has been talked about for years is stem cells and whether or not using them can be effective in treating life-threatening illnesses. Although the progress has been slow, this area of focus is beginning to gain serious steam as some of the brightest minds in medicine attempt to find creative ways to appease those with a critical view of this medical niche. While the regulatory and legal issues play out in the courts, one company is making a big move in the lab. That company is NeoStem (NASDAQ:NBS).
NeoStem is quickly becoming one of the leaders in the stem cell industry. The company is involved with the discovery, development, and commercialization of novel proprietary cellular therapy products. NeoStem also operates a contract development and manufacturing organization called Progenitor Cell Therapy. One major advantage that NeoStem has over its peers is that it’s able to combine a therapeutic development business with a revenue-generating service provider business. This is extremely favorable for shareholders as it will reduce the future need for secondary offerings as the company should be able to generate sufficient cash flow through Progenitor Cell Therapy to fund its research & development.
Since the beginning of May, shares of NeoStem have had a solid run and are currently up by roughly 25 percent since then. In late summer, shares actually traded as high as $9.89, almost 100 percent higher than the low set on April 30. The strong technical performance can be attributed to four main items including a reverse split, a listing on the NASDAQ, growth of Progenitor Cell Therapy, and anticipation of the PreSERVE Phase 2 trial data, with announcements expected in the summer of 2014.