As regenerative medicine finds its way into the mainstream, investing in stem cell stocks is worth considering. Tune in for our picks for the top stem cell stocks to keep on your radar.
There’s a lot of buzz around stem cells stocks, and for a good reason: stem cell technology is one of the most promising innovations in the medical field.
Healthcare researchers are working on regenerative medicine solutions, mainly stem cells.
Stem cells are essentially the body’s base that every other type forms from, so scientists can use them to replace damaged ones.
Researchers have also been testing cellular therapies for years as a potential treatment for a broad range of diseases like cancer, diabetes, cardiovascular diseases, and other neurodegenerative diseases such as Parkinson’s disease and Alzheimer’s disease.
Additionally, researchers can use stem cells as a safe way to test new drugs before using human patients since they can program the cells to become a specific type of tissue.
Despite the vast potential of cell therapy, it remains a young technology, and investors who want to bank on it need to know the best publicly listed stem cell stocks.
To kickstart your research, take a look at our picks for stem cell stocks to watch out for.
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 is also performing 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.
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.
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Stem Cell Research Stocks
Cellular Biomedicine Group (NASDAQ: CBMG)
Another champion of regenerative medicine is Cellular Biomedicine Group, with corporate headquarters in Maryland and a research facility in Shanghai, China.
Its cellular therapy approach uses adult stem cells from fat tissue for all of its research, particularly in creating safe and efficient medications the company can mass-produce to make them affordable on the market.
These include drugs specific to restoring damage caused by knee osteoarthritis, one of the most common but debilitating inflammatory diseases.
Cellular Biomedicine has also produced the first stem cell drug to reach phase II clinical trials and is currently working on cost-effective immuno-oncology drugs to alleviate the burdens of cancer.
Although the company has yet to release cell-based therapeutics, it has already received a fast track designation from the FDA, which means it is eligible for expedited review based on the promising results of its clinical data.
It has also completed its series A funding, where it raised $120 million to help finance and hasten the development of these drugs.
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 is also leveraging 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.
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 blood disorders that require 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.
While busy with omidubicel, Gamida Cell will advance phases I and II clinical trials for lymphoma drugs and other immunotherapy programs this year.
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.
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, treatments of which 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 is also testing 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.
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 still need to perform your own due diligence to ensure that stem cell stock matches your investment objectives.
In theory, stem cell therapy could potentially treat a wide range of 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.
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.
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.