Investing in Regenerative Medicine (RM)
A recent report from Goldman Sachs (NYSE:GS) includes a section titled “The Coming Age of Regenerative Medicine.”
An article about the report in BI is titled “Money is pouring in to a hot new area of science that could change the way we think about aging.”
According to the article, venture capital in companies pursuing regenerative medicine increased from $296-M in 2011 to $807-M in Y 2016, growing roughly 34% Y-Y.
The author also writes that, “by the report’s count, 80 regenerative-medicine companies received funding in the last 3 years, and the deals related to regenerative medicine accounted for almost 50% of the Top venture-capital deals in Y’s 2015 and 2016.
Just 2 years ago, Fed Chairwoman Janet Yellen threw “cold water” on biotech. She compared it to overheated social media.
I think Schoolmarm Yellen was wrong. And her off-the-cuff comment hurt startups struggling to find funds to survive.
On the other hand, economist John Mauldin has long predicted that there will be a bubble following the public’s realization of the power of emerging RM (not Recreational Marijuana). John is often wrong too,
But bubbles are not uniform things.
History teaches us that under and overvalued companies always exist in capital markets.
Some of the companies covered in Goldie’s report seem overvalued to me. Analysts, like economists are frequently wrong.
We never know what a company is truly worth until its products are judged by the market.
The Goldman report discusses Samumed, a private RM company. With $300-M in funding, it’s valued at a staggering $12-B. Samumed’s drug platform aims to regenerate various tissues such as bone, cartilage, hair, and skin. I like that, yes!
The Big Q: What does that mean to more established RM companies?
AgeX Plans to Reverse Aging
The original RM company, Geron, is now folded into BioTime (NYSEMKT:BTX) subsidiary Asterias. BioTime
Last week, BioTime announced a new subsidiary, AgeX. AgeX has a range of stem cell IPs aimed at conditions such as cardiovascular repair and diabetes.
The true goals of AgeX are radical, read reverse aging.
The company believes it can reactivate embryonic gene pathways to completely regenerate limbs and organs, including eyes, joints, and hearts.
AgeX’s induced tissue regeneration technology would not only regenerate damaged and missing tissues. it would turn back the biological clock of aging.
Its guru Michael West, a pioneer in stem cell medicine gave an excellent talk on this new science in his Keynote address at the 2016 World Stem Cell Summit.
If he is right, people will still have problems, but the cost of age-related diseases will not be one of them.
|NYSEMKT:BTX||3.19||18 April 2017||-0.07||3.24||3.24||3.16||196,900|
|HeffX-LTN Analysis for BTX:||Overall||Short||Intermediate||Long|
|Neutral (0.16)||Neutral (0.10)||Neutral (0.02)||Bullish (0.35)|
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