Tuesday, June 17, 2008

Baby Teeth, Stem Cells, and Stocks

What do baby teeth, stem cells and stocks have in common? The National Institute of Health has discovered that strong stem cells can be found in baby teeth, and there are stocks of several companies involved in stem cell research. Last month, a dental practice management company in Houston announced that they will offer a service of storing stem cells from baby teeth. Extensive research is being done to utilize stem cells for gene therapy and the treatment of multiple sclerosis, Parkinson’s disease, heart disease, diabetes, arthritis, and many other medical conditions.

Another source of stem cells is cord blood, the blood from an umbilical cord. The saving and storing of cord blood has become a fast growing business. Richard Branson, founder and head of Virgin Records and Virgin Atlantic Airways, set up a cord blood bank. Even Stem Cell Bonds were issued by the state of California last year.

Here are several stocks which are pure plays or semi-pure plays in the stem cell business. All but one of these have market caps over $300 million.

Alexion Pharmaceuticals (ALXN) is a Connecticut based company with a $2.4 billion market cap that is involved in the development of biologic therapeutic products for the treatment of hematologic and cardiovascular disorders, auto-immune diseases, and cancer. The stock has a forward PE of 49.6.

ARIAD Pharmaceuticals (ARIA) is a Massachusetts based company, with a $179 million market cap, that is involved in the development of treatments for cancer by using small molecules to regulate cell signaling. Their cancer products are used to treat solid tumors, sarcomas, hormone refractory prostate cancer, and endometrial cancer. The stock has generated negative earnings of 88 cents per share. It is a low cap stock and should be considered speculative.

Celera Group (CRA) is a New York Stock Exchange company that was founded in 1937. It is involved in the research of new diagnostic markers, using proprietary genomics and proteomics discovery procedures and diagnostic products. Some of their products are used for the detection of HIV, hepatitis C, and cystic fibrosis .They are in collaboration with Abbott Laboratories (ABT), Genentech (DNA), and General Electric (GE). The stock has a forward P/E of 92, and a PEG of 42.8.

Cellgene (CELG) is a New Jersey company involved in the discovery and production, of therapies designed to treat cancer and immune-inflammatory-related diseases. One of their main products is Thalomid, which is used for the treatment of erythema nodosum leprosum, a complication of leprosy. Last year, the company received patent on placental stem cell recovery. The stock has a forward P/E of 26, and a PEG of 0.98.

Dendreon Corporation (DNDN) This $650 million market cap company is involved in the discovery, development, and sales of active immunotherapies, monoclonal antibodies, and small molecule product candidates to treat cancer. They also manufacture the DACSÒSC stem cell enrichment device. The stock has had negative earnings of 1.06 per share.

Geron (GERN) is a Menlo Park, California based $310 million market cap company which develops cell-based therapies derived from human embryonic stem cells used for the treatment of various diseases and medical conditions such as spinal cord damage, heart failure, and diabetes. The stock has had negative earnings of 76 cents per share.

Integra Lifesciences Holdings (IART) is a New Jersey based $1.2 billion market cap company that develops, manufactures, and sells medical devices, implants, biomaterials, and instruments to the stem cell, surgery, and soft tissue repair markets. Their P/E is 40, and the PEG is 1.01.

Invitrogen Corporation (IVGN) is a California based $3.3 billion market cap company which sells products and services to research institutions, pharmaceutical companies and biotechnology companies, including tools for gene acquisition, gene cloning, and gene analysis techniques. The stock has a P/E of 21, and a PEG of 1.24.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com


Tony Nazzal said...


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Just watch

The Sensex has lost more than 27% since its January peak, and trading volumes are down 46%.
Investors has lost there 70% of portfolio .

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To name few
2. SBI

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Nifty is expected to correct bit more and after that we can say market will be bullish. As this correction was overdue reason being if we observe in past months speculated stocks whose fundamentals are zero has also shown tremendous upward rallies in the market and now again they are trading at there real values. But still investors are trapped in them and no one is sure those scripts will ever reach those highs or not.

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