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Today’s top 3 stem cell stocks under $6

Today's Financial News - Posted May 11, 2009

Stem cells research

Here are the three top timely investments in our continuing search for the best stem cell stocks. And each is priced under $6!

By Laura Cadden, TodaysFinancialNews.com

Baltimore — (TFN): The world of stem cell stocks is fast-paced and volatile. Two of our latest free picks for TFN readers, Geron and Cytori, have passed our recommend buy prices.

But we’ve got plenty of other biotechs we’re watching. In fact, we believe the following 3 to be on the verge of a breakout.

Best of all, each one of these 3 stocks is priced below $6!

HOT STEM CELL STOCK #1: Aastrom Biosciences, Inc. (NASDAQ:ASTM)

Back in January, TFN readers who bought this stock on our November recommendation saw gains of over 50%. Since then the price has been battered back down with the markets.

Over 5 million people in the U.S. suffer from cardiomyopathy (heart muscle disease).

The condition is a contributing factor in at least 250,000 deaths each year.

Dilated cardiomyopathy (DCM) is the most common form of the disease. More men suffer from it than women. It usually occurs in those aged between 20 and 60 years—though even children can have it. In fact, my brother is a sufferer and I lost a grandmother and uncle to DCM.

Patient numbers are bound to increase as the U.S. population ages. But one company is hoping to reduce the mortality rate through revolutionary treatments.

Aastrom Biosciences, Inc. develops products for the repair or regeneration of human tissue.Aastrom’s proprietary Tissue Repair Cell (TRC) technology involves autologous (meaning the patient’s own), mixed-cell products containing stem and early progenitor cells to treat cardiac and vascular tissue regeneration.

Mending the ailing heart

Aastrom’s Cardiac Repair Cells (CRCs) are in Phase II clinical trials for the treatment of dilated cardiomyopathy (DCM) or congestive heart failure.The CRCs are delivered surgically, directly into the heart muscle.

Preliminary results showed “meaningful improvement” according to press releases.

The company is enrolling patients with end-stage DCM. Half will have ischemic DCM (often caused by repeated heart attacks) and the other half, non-ischemic DCM (where the damage is due to hypertension, viral infection or alcoholism).

Orphan Drug Designation

Early indications from a “compassionate use” case in Germany are promising. (“Compassionate use” means an experimental therapy that is not yet officially approved but permission has been granted to treat a patients who has run out of other options).

As a result, the U.S. Food and Drug Administration gave Aastrom’s CRCs the Orphan Drug Designation. That allows for an 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.

Worth your investment buck

The current market conditions have battered down stocks like this micro cap. But with the increased interest in stem cell research, federal grant money coming, and a treatment that — if it works — could change the lives of millions.

I recommend you buy shares of Aastrom Biosciences, Inc. (NASDAQ:ASTM) at or under 60 cents. I expect this stock to go up at least 20% in the next 6 months.

HOT STEM CELL STOCK #2: Curis, Inc. (NASDAQ:CRIS)

Located in Cambridge, Massachusetts, Curis develops drugs primarily for cancer treatment. They target signaling pathway technologies on a molecular level.

Signaling pathways are tools cells employ to communicate instructions to regulate biologic functions and repair damage to tissue.

It’s believed that many diseases—like basal cell carcinoma—may result if something goes wrong with these signaling pathways and/or their components.

In collaboration with pharma development giant Genentech, Curis is developing their Hedgehog antagonist program.

Through orally-administered small molecule compounds, they seek to introduce signaling pathway inhibitors to slow or stop the growth of tumors.

The following are the specific therapies and their current clinical trials:

GDC-0449 (combined with chemotherapy and bevacizumab)

Phase I:

- Pediatric medulloblatoma (recruiting): This trial originated with a cooperative research and development agreement between the Curis, Genentech and the National Cancer Institute (NCI). NCI plans to sponsor more clinical trials for other cancer variations, as well.

Phase II:

- Locally advanced and multi-focal metastatic basal cell carcinoma (active)

- First line metastatic colorectal cancer (recruiting)

- Advanced basel cell carcinoma (recruiting)

- Advanced ovarian cancer (recruiting)

CUDC-101

Phase I:

- Cancer – advanced solid tumors (recruiting)

The company has another four drugs in the works for cancer and other diseases.

Curis is also gaining solid financial footing…

For the first quarter of 2009, the company reported a net income of $1.1 million. Compare that to Q1 2008 when it saw a net loss of $3.4 million.

I recommend you buy shares of Curis, Inc. (NASDAQ:CRIS) at or under $2 and hold on for double-digit gains.

HOT STEM CELL STOCK #3: Sangamo Biosciences Inc. (NASDAQ:SGMO)

Sangamo’s ZFP TF technology allows researchers to target individual genes and work at turning them on and off.

The company’s product, called transcription factors (the TF in ZFP TF), seek to regulate gene expression.

Small-molecule drugs based on this ZFP TF technology are used in what the company calls Regulatable Gene Therapy. Again, one simple drug can turn on and off individual genes… like a switch.

Live-saving potential

A lucky few people who have a homozygous (set of alleles from both parents) deletion mutation of the gene CCR5 are practically resistant to a handful of diseases, most notably HIV. The mutation impacts T cells and thereby blocks the mode of transmission of HIV. Less than 2% of the global population is fortunate enough to have this unique gene activation.

Sangamo scientists are working to duplicate this naturally-occuring phenomenon by modifying the CCR5 gene and essentially turning it off in HIV patients. Once perfected, this treatment could save tens of thousands of lives each year—perhaps even create immunity.

In early May, the company was awarded $1 million from the Bill and Melinda Gates Foundation towards this HIV research.

Moveover, Sangamo’s ZPF TF technology has the potential to cure other horrific diseases like small pox, Parkinson’s disease, multiple types of cancer and even amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease).

Thanks to its groundbreaking work, the company has developed lucrative partnerships with companies like Dow AgroSciences and Sigma-Aldrich Corp., and has licensed its products and research to major industry players like Pfizer, Genentech and Novo Nordisk.

Sangamo has a pipeline of incredible research and potential products. Competitors are willing to pay extraordinary amounts to get their hands on its technologies. And the company is in a strong financial position.

I recommend you buy shares of Sangamo Biosciences Inc. (NASDAQ:SGMO) at or under $6 and hold on for double-digit gains.

Other recommended reading…

***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…


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Posted by Laura Cadden · Filed Under Investment Strategies 

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