Stem cell small caps – high risk / high reward stock?.
Stem cell small caps – high risk / high reward stock?
Stem cell stocks – bargain small caps with great potential?
Stem cell stocks have greatly outperformed the market over the last 3 months:
Company Growth Market Cap
Osiris +79% $313m
Pluristem +70% $200m
NeoStem +45% $110m
Neuralstem +35% $71m
Stemcells +160% $64m
Source: http://seekingalpha.com
All these companies have products that are still in clinical trials so there is a significant risk of failure and therefore catastrophic value loss. However, Pluristem and Osiris and Mesoblast (MSB.AX) utilise the (relatively) less risky mesodermal cell platform in which Mesoblast garnered the first potential $ Billion stem cell deal with Cephalon in 2010.
Stem cell therapeutics remain the most likely ‘next breakthrough’ in Biotechnology and are reminiscent of the vastly undervalued Antibody stocks of the 1990s. Certainly great upside potential if your willing to accept risk…
Ajan Reginald
