Investing in the Next Generation of Stem Cell Medicine

LAS VEGAS, NV / ACCESSWIRE / June 20, 2016 / After the StemCells, Inc. (STEM) announcement at the beginning of the month signaling the orderly wind down of its operations following the termination of its Phase II Pathway study citing the magnitude of the effect and perceived trend of the effect over time did not justify continuing the study or exploring the variability in the initial patient observations. As a result, it should be clear to investors the old generation of stem cell companies are phasing out and the time has come to focus on new techs much more likely to come to market with an effective product. This is only the latest of several high profile stem cell failures to hit the market in the last few years. These older generations of stem cell products, which can date back over 20 years, were originally operating under the assumption transplanted cells would replace damaged or injured cells in tissues and organs. However, the current understanding of adult stem cells is they are tiny drug factories largely operating by secreting therapeutic proteins and reducing inflammation in tissues. A common trend among these high profile failures is here was a therapeutic effect from the stem cells but the effect was not potent enough to produce efficacy.

A few other notable companies who may have fates similar to STEM include: Athersys, Inc. (ATHX) and Cytori Therapeutics (CYTX).

There are three next generation stem cell companies focused on producing more biologically potent stem cells that investors still interested in stem cell medicine (which they should be) should turn their focus to including Endonovo Therapeutics, Inc. (ENDV), Pluristem Technologies, Inc. (PSTI), and Fate Therapeutics, Inc. (FATE).

Endonovo Therapeutics, Inc. (ENDV) is currently developing bioelectronic medicines and bioelectronics-enhanced cell therapies for regenerative medicine. The company has two platforms under development referred to as Immunotronics and Cytotronics that utilize Time Varying Electromagnetic Field (TVEMF) technology originally developed at NASA.

One of ENDV ‘s largest opportunities lies in their Cytotronics platform, which uses electrical stimulation and simulated microgravity to expand and enhance the potency of stem cells. ENDV is initially focused on treating Graft Versus Host Disease (“GVHD”), expanding the use and effectiveness of cord blood stem cells and producing fully human biologics from adult stem cells. GVHD, occurs when cells from a transplanted organ or tissue attack the recipient’s body. GVHD primarily occurs following a stem cell, bone marrow or tissue transplant.

Global spending on treating the disease was about $300 million in 2013 and is expected to grow at a CAGR of 12.8 percent to $545 million in 2023, according to research from Future Markets Insight. This is major opportunity for Endonovo.

Current solutions for GVHD suppress the donor’s immune system and cost nearly $200,000.

Essentially, these medications increase the risk of contracting viruses and infections which is a nightmare for patients and bloats the pressure on insurance providers. This incentivizes the industry to find a solution that does not suppress the immune system. Endonovo’s cell therapies could be this solution.

All in all, Endonovo seems to be an attractive play for investors looking to make significant returns on their investments.

Pluristem Therapeutics, Inc. (PSTI) is an Israel based Biotech company developing off-the-shelf cell therapies for a variety of human diseases. What makes it different is that it uses human placenta cells from donors instead of the patient’s own cell. These cells are not genetically modified but the proprietary production process of the company will “train” them to effectively deliver a mix of proteins to the patients once injected. Pluristem is currently developing an off-the-shelf antidote using its PLX-R18 candidate for acute radiation syndrome.

Fate Therapeutics, Inc. (FATE) a biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders, announced that it will present preclinical data for ToleraCyte™, its programmed CD34+ immunoregulatory cell product candidate for autoimmune diseases, at the American Diabetes Association’s 76th Scientific Sessions being held June 10-14 in New Orleans, Louisiana. Scientists from Fate Therapeutics and Boston Children’s Hospital demonstrated that a single administration of programmed cells results in durable correction of type 1 diabetes in a well established non-obese diabetic (NOD) mouse model. In addition, the group showed that a single administration of programmed cells significantly delays the onset of type 1 diabetes in NOD mice. Fate Therapeutics is advancing ToleraCyte through late stage preclinical development under a collaboration with Boston Children’s Hospital led by Paolo Fiorina, M.D., Ph.D., Assistant Professor of Pediatrics at Boston Children’s Hospital and Harvard Medical School.

This next generation of cell therapies should finally be able to realize the full potential of bringing stem cell medicine to market.

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