July 13, 2020

The Niche

Knoepfler lab stem cell blog

Prospects for stem cell stocks in 2016

stem cell stocksMoney plays a major role in the arena of stem cells, cell therapy, and regenerative medicine. The financial side of this cutting-edge field ranges from grants to private investors to publicly traded stocks. One could argue that the flow of total investment going into this area has a direct and tangible impact on how rapidly and effectively the research moves forward.

In the specific area of publicly traded companies working in stem cells, cell therapy, and regenerative medicine, what’s the investment outlook for the coming year? How will stem cell stocks do?

I’m not an investment expert so don’t take this post as financial advice, but overall things look pretty mixed for 2016. On the one hand, there have never been more clinical trials and ones with real potential, which is a great positive hallmark. On the other hand, for many stem cell companies what seems to be “good news” does not always equate to consistent increases in the stock PPS or company valuation. It’s a super high-risk arena for investors.

Pharma purchases in 2015 of stem cell companies such as CDI and Ocata can also be viewed in polar opposite ways. This could signal more purchases/acquisitions of stem cell biotech’s coming in 2016 and that could both help get treatments to patients and benefit investors, but will the price be right and does it translate to a positive outcome for investors? Many investors are very unhappy about the price paid for Ocata. What do you think of that sale?

What are your favorite stem cell stocks as you look ahead to 2016 and why? Do you see acquisitions coming? What about IPOs? Could an exciting stem cell company such as ViaCyte do an IPO in the next 12-24 months?

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