As regenerative medicine finds its way into the mainstream, investing in stem cell stocks is worth considering. Healthcareresearchers are working on regenerative medicine solutions, but are these worthy investments? Tune in for our picks for the top stem cell stocks to keep on your radar.
Best Stem Cell Stocks
BrainStorm Cell Therapeutics (NASDAQ: BCLI)
Headquartered in New York, BrainStorm Cell Therapeutics looks to combat degenerative diseases using stem cells found in a patient’s bone marrow (autologous harvesting). Although the company doesn’t have stem cell products, many are already in clinical development.
The company has medications in the pipeline to treat amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease) and progressive multiple sclerosis, which has already been cleared for a phase III clinical trial.
It also performs preclinical trials on stem cell drugs against Huntington’s disease (HD), Parkinson’s disease (PD), and autism spectrum disorder. BrainStorm Cell Therapeutics has developed a proprietary cellular technology platform called NurOwn to treat these diseases.
In fact, studies from NurOwn’s Phase 3 ALS study produced impressive outcomes.
The biggest impacts were shown in biomarkers linked to neuroinflammation and neuroprotection. However, substantial changes were seen across several cerebrospinal fluid biomarkers following NurOwn therapy, according to these data.
This meant that the therapy had an effect on the disease process, not just the symptoms. The company is now looking to move into commercialization as early as possible.
The company’s stem cell research could be a breakthrough in slowing or eliminating these diseases as they are not yet curable. From an investor’s standpoint, it could mean massive capital growth in the following years.
BioNTech (NASDAQ: BNTX)
BioNTech, an immunotherapy business, is developing cutting-edge treatments for critical illnesses, including cancer. To create novel biopharmaceutical drugs quickly, the business integrates therapeutic drug platforms and computational discovery.
Individualized and commercially available mRNA-based therapeutics, chimeric antigen receptor T cells, bi-specific checkpoint immuno-modulators, targeted cancer antibodies, and small compounds are all part of BioNTech’s portfolio of oncology products prospects.
Thanks to the COVID-19 vaccine that it co-developed with Pfizer, BioNTech has been reporting good sales and profit results. It has declared a net income of 12.9 billion euros on revenue of 23.3 billion euros for the previous 12 months, for a profit margin of 55%.
The impact of inflation might be somewhat offset by BioNTech while maintaining a profit margin of at least 50%.
The warning, in this case, is that the biotech company’s margins may shift, particularly if demand for the Comirnaty vaccine declines dramatically. Nearly all of the company’s current sales are provided by Comirnaty.
However, BNTX is now running 20 Phase 1 or 2 clinical trials, some of which use mRNA-based therapies to treat different malignancies.
Years may pass before they receive regulatory approval (if at all), and the company won’t start making money from them until then. However, success in those projects might eventually provide it with a more diverse stream of income.
The need for COVID-19 vaccinations is still present in the meantime. Just a month ago, Pfizer and BioNTech revealed that the American government had agreed to buy an additional 105 million vaccine doses, with the option to buy an additional 195 million.
The demand for Comirnaty and the modified version it has created that targets the omicron variations should continue to be high as new infectious strains continue to emerge. This is great news for BNTX and its investors.
Stem Cell Research Stocks
Vericel Corp. (NASDAQ: VCEL)
Vericel is a biopharmaceutical company focused on developing cellular therapies and drugs for people with significant conditions, such as severe burns and knee joint pain.
Although its market cap declined recently, investing in Vericel could still offer excellent long-term positioning.
The company capitalizes on already approved technologies, such as autologous cultured chondrocytes on porcine collagen membrane (MACI), to repair damaged knee cartilage.
This makes the medication a potential therapy in sports medicine, whose market value could reach $15 billion by 2027 with a compound annual growth rate (CAGR) of over 8%, according to Grandview Research.
It also leverages Epicel, a treatment approved by the FDA in 2016, to treat severe burns. Further, more insurance providers are covering MACI for treatment, and this could continue to increase sales.
It is also building a massive research and production facility, a clear sign of its commitment to stay in business for a long time. Investors of Vericel Corporation shares haven’t had the finest quarter because of a 25% decline in share price.
However, that does not diminish the outstanding longer-term performance (measured over five years). A fantastic result by any standard, the stock price is currently 752% higher than it was five years ago.
The recent decline might be justified, given the significant surge that preceded it. Of course, the most important factor is whether the company can grow stably and charge a greater price.
Stem Cell Stocks To Buy
Gamida Cell Ltd. (NASDAQ: GMDA)
Gamida Cell Ltd. is a multinational biotech company focused on developing cell therapies for blood cancers and disorders requiring urgent medical attention.
It currently has many products in the pipeline, including omidubicel, which is already in phase III clinical trial for treating hematologic or blood-related conditions, and phase II for managing aplastic anemia.
The company has also applied for a biologics license application (BLA) from the FDA for the same drug, and if it gets approved, the drug could be the first of its kind for allogeneic stem cell transplant.
In 2017, its product called NiCord cell graft received an orphan drug designation from the FDA, implying it could be a possible treatment for rare conditions like blood cancer.
This development could be a game-changer since the medication will become an alternative treatment for blood cancer patients ineligible for other life-saving therapies like bone marrow transplantation.
Recent reports indicate that omidubicel testing progressed towards full BLA (biological license application) submission in the first quarter of 2022.
The company has plans to initiate a pivotal phase III clinical trial in the U.S. for relapsed or refractory acute myeloid leukemia (AML) patients who are unable to receive standard induction therapy.
Gamida Cell aims to treat as many blood cancer patients as possible with its innovative cell therapies and improve patient outcomes.
Investors interested in biotech stocks may want to keep an eye on Gamida Cell as it progresses through the clinical trial process for its various products.
Stem Cell Stocks To Watch
Sangamo Therapeutics (NASDAQ: SGMO)
American-based Sangamo Therapeutics Inc. is focused on treating rare conditions through cell and gene therapies.
It currently has various treatments in its pipeline, including one for hemophilia that’s already in phase III, collaborating with Pfizer.
It also has Fabry and sickle cell disease treatments in phases I and II, and clinical data showed the drugs are both tolerable and safe so far.
Although these conditions are rare, cell therapy options for these are lucrative; for example, Facts & Factors revealed that the market value for Fabry disease treatment could be worth almost $4 billion by 2026.
However, the gene therapy company continues to find excellent collaborations with established pharmaceutical companies like Pfizer and Sanofi, indicating it is a trustworthy brand.
In terms of progress, the company continued to advance several products through clinical development last quarter, showcasing Sangamo’s history of developing ground-breaking medicines for genomic medicine.
Five patients in total were reportedly dosed by it across three programs, including the first subject in a study to treat kidney transplant rejection and the first human dose of a product candidate for engineered CAR-Treg cell therapy.
This development puts the company in a strong position to advance transformational genomic medicines for patients in need and to produce long-term value for its shareholders.
Stem Cell Penny Stocks
Athersys Inc. (NASDAQ: ATHX)
The Ohio-based Athersys Inc. is currently developing a patented product called MultiStem to treat a variety of inflammatory, immune, and neurological conditions. These treatments could achieve a market value of over $145 billion this year.
One of the specialized cell types, MultiStem is not analogous but instead derived from the mesenchymal cells of a healthy individual, which the lab then stores and efficiently mass-produces using specific techniques.
Because these are not fetal or embryonic stem cells, the company’s stem cell product bypasses ethical or even legal concerns.
Currently, the company is running clinical trials to use this type of stem cell for heart disease and ischemic stroke, eventually obtaining a special protocol assessment from the FDA for the latter based on the impressive clinical data.
It also tests the same cells for acute respiratory distress syndrome (ARDS), which affects almost 200,000 Americans annually.
Athersys is also gearing up to commercialize the company’s stem cell therapy by appointing a new CEO, Daniel Camardo, who possesses extensive business experience in marketing treatments for rare and inflammatory conditions.
This move exemplifies the company’s dedication to bringing life-saving therapy to as many people as possible. With a market cap of $73 million, Athersys is a strong contender in the race to develop an effective and safe stem cell therapy.
Should You Buy Stem Cell Stocks?
Investing in stem cell stocks often means putting money on companies that have yet to have products on the market. As a result, they have historically been high risk, fluctuating up and down as public sentiment changes.
These make people wonder if these stem cell companies are worth it in the long run, but stem cell research looks very promising. You must still perform your due diligence to ensure that stem cell stock matches your investment objectives.
In theory, stem cell therapy could potentially treat various health conditions, from disc degeneration to chronic back pain, cancer, and metabolic disorders.
Some estimate that the market value for this healthcare product could reach as high as $26 billion in 2026, with a CAGR of over 10% from 2021 to the end of the forecast period.
The biggest challenge for stem cell companies has been figuring out how to program these stem cells into the specific types of cells they need.
Developing these drugs and products can take years, but automated technologies, innovations like gene therapy, and government and private support are speeding things up.
In fact, the market already has FDA-approved treatments available, albeit limited, that use stem cells from the umbilical cord to form blood cells and treat the hematopoietic system.
As the FDA approves more stem cell therapies, their corresponding stock price could go up dramatically.
Stem Cell Stocks: Final Thoughts
Unless someone finds the Fountain of Youth, the human body will experience wear and tear, and along with it is the development of chronic and sometimes serious diseases.
Regenerative medicine, including stem cell treatments, provides more options to live longer without compromising their quality of life. Granted, this field still needs extensive research and deals with many challenges, including ethical issues, cost, and even bureaucracy.
However, considering the advancement in healthcare technology, FDA support, and need, investing in these biotech companies could still be worth it.
Stem Cell Stocks FAQ
Is Stem Cell a Good Investment?
Stem cell investing can be lucrative, risky, and volatile. The risks are high because many products are still in development and are subject to many factors such as ethics and FDA approvals. However, if they become successful, the returns can also be massive.
Which Company Is Best for Stem Cell Technology?
Many biotechnology companies engaged in stem cell research and development are publicly traded. These include BrainStorm Cell Therapeutics, Cellular Biomedicine Group, and Vericel Corp. Other options include Gamida Cell Ltd., Sangamo Therapeutics, and Athersys Inc.
How Much Is the Stem Cell Industry Worth?
The global market value for stem cell therapy reached around $755 million in 2018, according to Statista. Some estimate that it could be worth $11 billion by 2029.
Stem cell research potentially offers treatments and cures for several diseases. This could boost public sentiment and encourage more investment.
Is Stem Cell Promising?
Stem cell research is promising, as it rides with the growth of regenerative medicine. However, it remains a risky and volatile market.
Nonetheless, the potential rewards are great. For instance, if stem cell therapy can be used to treat just one disease, it would represent a multibillion-dollar opportunity.
How Can I Invest in Stem Cell Technology?
Many biotech companies engaged in stem cell development are on the stock market. Some popular ones are Sangamo Therapeutics, Vericel, and BrainStorm Cell Therapeutics.
You can find stocks for companies involved in stem cell research and development online. Look for a few companies that match your investment criteria.
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