Four biotechs set to soar
Today's Financial News - Posted January 12, 2009
These four biotech stocks have tremendous potential for future gains. And best of all, each is currently trading for under $6!
By Laura Cadden, TodaysFinancialNews.com
Baltimore (TFN): Back in November, I told TFN readers about “The 3 Hottest Stem Cell Stocks Under $5.”
We’ve already taken double-digit gains on Aastrom Biosciences, Inc. (NASDAQ:ASTM), Cerus Corporation (NASDAQ:CERS), and Geron Corporation (NASDAQ:GERN).
But these stocks are by no means done with their upward momentum.
Biotech companies continue to be a great investment – and these three are some of the best out there.
As the market takes another hit and these stocks artificially deflate, I recommend that TFN investors should again pick up shares.
And I’ve found another company that I believe is on the verge of a breakout.
But first, what’s so great about the three companies I selected in November? Let’s review…
Aastrom Biosciences, Inc. (NASDAQ:ASTM) develops products for the repair or regeneration of human tissue. It’s proprietary Tissue Repair Cell (TRC) technology involves autologous, mixed-cell products containing stem and early progenitor cells to treat cardiac and vascular tissue regeneration.
The company launched Phase II IMPACT-DCM clinical trials for the evaluation its Cardiac Repair Cells (CRCs) in the treatment of dilated cardiomyopathy (DCM) or congestive heart failure. DCM is a contributing factor in at least 250,000 deaths each year.
The U.S. Food and Drug Administration gave Aastrom’s CRCs the Orphan Drug Designation. That means expedited FDA review, a reduction of filing fees, possible tax credits, and the right to seven years of marketing exclusivity once the product receives FDA approval.
I recommend you buy shares of Aastrom Biosciences, Inc. (NASDAQ:ASTM) under $0.85.
Cerus Corporation (NASDAQ:CERS) has developed an INTERCEPT Blood System to find and inactivate blood-borne pathogens in donated blood components to be used in transfusions.
The INTERCEPT red blood cell system uses the small molecule S-303 to bond with the nucleic acids of pathogens and prevent their replication. A pH change is required to allow the bonding and thereby blocking the DNA and RNA to prevent replication.
This would destroy transfusion-transmitted infections from viruses, bacteria, and parasites.
For platelets and plasma, the same result is achieved by using the molecule amotosalen HCI and ultraviolet A light instead of a pH change to block the replication of pathogens.
This technology could truly revolutionize blood component donation.
The system is currently being used on both platelets and plasma collected in Europe and the Middle East.
The company is preparing for European Phase III clinical trials and will be working with the German Red Cross to commercialize their INTERCEPT system for red blood cells. And it’s initiated Phase I clinical trials for the same system in the U.S.
I recommend you buy shares of Cerus Corporation (NASDAQ:CERS) at or under $2.
Geron Corporation (NASDAQ:GERN) has seen a nice jump in stock price of late and it’s no wonder.
DNA at the end of chromosomes is called the telomere. It has been suggested that the manipulation of the telomere could do everything from stopping the aging process in cells to treating and containing cancer.
It’s telomerase activity that stabilizes cancer cells and allows them replicate indefinitely.
The researchers at Geron believe they can instruct a patient’s immune system via autologous dendritic cells how to identify and attack cancer cells while sparing other, non-threatening cells. (Dendritic cells are the antigen-presenting leukocytes that initiate the primary immune response.)
They achieve this by introducing telomerase characteristics specific to cancer cells. An immune response then occurs when cells are found with those telomerase characteristics.
Merck & Co., Inc. (NYSE:MRK) entered an agreement with Geron for the exclusive research, development and commercialization of the company’s vaccines targeting telomerase. In December of 2007, Merck initiated a clinical trial of the Geron-created vaccine GRNVAC1.
And that’s not all this company has up its sleeve…
Geron is collaborating with the University of Oxford on a variation to GRNVAC1 called (unoriginally) GRNVAC2.
Here, instead of isolating dendritic cells in each patient, the researchers are attempting to produce them from human embryonic stem cells.
This could act to prevent an immune response against an antigen by instructing the immune system to tolerate it.
On the therapy side of things, Geron’s drug GRN13L seeks to inhibit telomerase activity, thereby destabilizing and causing the death of the cancer cells.
In early December, an interim analysis of GRN163L Phase I clinical trials for the treatment of patients with relapsed and refractory multiple myeloma showed promising results.
This malignancy of plasma cells typically arises in the bone marrow and goes on to impact tissues and organs.
For two patients in the study, the bulk tumor fraction of bone marrow decreased by 78% and 48% respectively.
In addition, activity from the telomerase in the myeloma stem cell-containing fraction of the patients’ bone marrow dropped by 33% and 63%, respectively.
Geron is also working on treatments for heart disease, spinal cord injury, osteoarthristis and more. Check out their website for more details.
I recommend you buy shares of Geron Corporation (NASDAQ:GERN) at or under $6.
***UPDATE January 24, 2009: Geron Corporation (GERN) up 36% on news of FDA go-ahead
But there is another biotech stock I believe to have big potential…
Cytori Therapeutics, Inc. (NASDAQ:CYTX) develops, makes and markets regenerative therapy from adipose tissue (fat tissue).
Adipose tissue has been found an extremely good source for adult stem and regenerative cells.
Cytori is working on using this technology in the treatment of conditions such as cardiovascular disease and gastrointestinal disorders, and in reconstructive surgery and radiation-induced tissue injuries.
Its Celution 800 System product for reconstructive surgery has hit record sales in Europe.
The Celution 900 System cryopreserves a patient’s own stem and regenerative cells is being marketed worldwide.
These systems process the patient’s cells at their bedside, as they are needed.
The company’s StemSource cell banking is very popular in Japan. And interest is picking up everywhere.
Banking one’s cells for future needs could soon become common practice.
To read a more thorough breakdown of what the company has in the works, go to its website.
I recommend you buy shares of Cytori Therapeutics, Inc. (NASDAQ:CYTX) at or under $5.
To get weekly Hot Stock Picks, regular investment research reports and buy/sell alerts, become a member of our premium service, Hot Stock Confidential. Learn more about our latest opportunity (and the service) right here…
Other recommended reading…
- The TFN Complete Guide to Stem Cell Companies Part 1: Share prices above $50
- The TFN Complete Guide to Stem Cell Companies Part 2: Share prices between $10 and $50
- The TFN Complete Guide to Stem Cell Companies Part 3: Share prices between $1 and $10
- The TFN Complete Guide to Stem Cell Companies Part 4: Share prices below $1
Next Article: Sunrise at Hacienda San Joaquin
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January 29th, 2009 at 6:00 pm
what about advaned cell tech (actc)
February 27th, 2009 at 5:52 pm
Great picks.
But the greatest biotech for the next 10 years, Sangamo Biosciencs (SGMO)
March 3rd, 2009 at 8:04 pm
iam a world travler an when i was in china i saw thing done thier that is hard to belive i am putting ever thing in to stem cellcompany i think stem cell will replace most of the medical we know of to day in the next ten yearsan i am thing of backing a young lady from africato become a stem cell doctor john ketner 3708 delawere tr lake worth texas 76135