NeoStem: Final Data Is Just Around the Corner
The year 2013 has certainly been an amazing one for biotechnology stocks. Several of the most popular biotechnology/healthcare ETFs have generated significant returns over the past year such as
- iShares Dow Jones US Healthcare ETF: + 34 Percent
- iShares NASDAQ Biotechnology Index Fund: + 56 Percent
- SPDR S&P Biotech ETF: + 39 Percent
In light of these returns, investors are probably looking ahead to the 2014 biotechnology landscape in search of stocks that may help the industry continue its torrid pace. One stock that investors need to keep their eyes on is NeoStem (NASDAQ:NBS). On Monday, NeoStem announced that it had completed enrollment for the AMR-001 PreSERVE Phase 2 trial. This enrollment completion now means that investors can focus squarely on the data announcement, which is expected 6-8 months from now (Summer 2014).
Diversified Business Strategy
Executives of NeoStem have built a diversified company with the potential to succeed in several different areas including:
- Progenitor Cell Therapy: NeoStem’s contract development and manufacturing organization. PCT has manufacturing, regulatory, and commercialization expertise for therapeutics development. Thus far in 2013, PCT has generated roughly $10.6 million in revenue.
- Athelos: A clinical development program seeking to engineer therapies using a person’s own cells to treat disorders of the immune system.
- VSEL Technology: VSELs (Very Small Embryonic-Like Stem Cells) may have the potential to differentiate into target tissue and create cellular regeneration. A recent study that was conducted at the University of Michigan demonstrated that VSELs could regenerate bone in a mouse model. In light of this research, NeoStem hopes to soon begin the first human trial using VSELs for the treatment of periodontitis.
This diversification will serve investors well as NeoStem continues to build a business that is on the cutting edge of breakthrough medical developments. But the one area that perhaps has the most immediate potential on the share price is the potential of AMR-001.