October 23, 2020

The Niche

Knoepfler lab stem cell blog

Tale of 7 stem cell biotech stock woes

To get from point A of a stem cell discovery to point B of a patient actually receiving a treatment based on that discovery is a long and non-linear road, which requires biotech company research.

Stem cell biotech companies including publicly traded companies are an integral part of the field making that journey. How those companies fare financially is not just of interest to investors, but also should be on the radar screen of scientists and advocates too.

Lately, stem cell companies have not been doing so well financially to put it mildly and their stock prices have generally been going down, down, and down further. A lower stock price and market capitalization are not just a headache for investors and bad for the companies, but they also strongly interfere with the progress of the clinical science.

Today I’m looking at 7 stem cell biotechs. To be blunt, why are their stocks doing so miserably?

Ocata

Ocata Therapeutics (OCAT, formerly ACTC) is the only biotech discussed in this post in which I hold a financial stake and it is a small stake…growing smaller by day as the stock spirals down. If you look at the chart you can see what a terrible 6-months it has been for OCAT.

BioTime (BTX) is another stem cell biotech company often discussed on this blog. Like Ocata, I’m a fan of the science in this company and the scientific leadership. The stock has been seriously roughed up in the last three months after a good period prior to that.

The stock price of StemCells, Inc (STEM) has really been struggling since March, when it took a nose dive and then another precipitous drop in late June.

Caladrius (CLBS), which was formerly NeoStem, is basically at its 52-week low.

Athersys (ATHX) stock dropped off a cliff in April of this year (down more than 50%) and has not recovered at all.

Cytori (CYTX) stock is at a fraction of the price it was a year ago.

Neuralstem (CUR) stock cratered in March and remains way down.

One exception (and I’m sure there are others) I found is Osiris (OSIR), which has had a good run of late.

NASDAQ Biotech index

The NASDAQ Biotech Index (above) has done great in the past year so this trend in stem cell stocks is definitely going against the overall biotech trend.

Stem cell biotechs constitute a volatile area for sure, but in some cases the companies have reported encouraging results and progress. Good news seems to be accompanied by no positive change in the stock price.

If this trend continues at some point are some of these companies going to fold?

Overall, why all the stem cell biotech stock woes of late?

Disclaimer: this post is not financial advice.

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