Wednesday, June 27, 2007

Cytori has an Interesting New Product

I was recently researching Stem Cell stocks and came across Cytori Therapeutics (CYTX) This article really went into detail on a new product that they will take to market later this year.
Cytori has invented a device that can withdraw stem cells from patient
fat for re-use elsewhere in the body. The entire process takes around an hour
and, at $2,500 to $10,000 per treatment, looks downright cheap for stem
cell-based therapy.


Unlike fat itself, once used with limited success for breast
reconstruction surgery, Cytori says that fat-derived stem cells bring needed
blood supply to reconstructed breasts. Thus, the company says that breast
reconstruction surgery patients should finally have an option that will work and
actually last.

This market might bring in $85 million and they can also leverage it into the breast augmentation market as well. If they can get that process approved it would be a $100 to $300 million opportunity.

In fact since these cells come from a persons own body they would be far preferable to silicone or saline implants. There will be no risk of rejection and there will be no foreign objects leaking into a woman's body and possibly giving her cancer down the line. If it is easier to pull off and results in less scarring or complications this process might be able to dominate the industry.

They are also working on this as well:
Still, Cytori expects to pursue an even bigger opportunity down the
road. Right now, the company is enrolling patients in a study designed to test
its stem cell treatment for cardiac ischemia, a common ailment characterized by
poor blood flow. That therapy, unlike current drugs on the market, aims to
regenerate heart tissue rather than simply slow its deterioration.


"It depends on how good the data is," he admits. "But if we can get 3%
to 4% of the market share (for cardiac ischemia), that would be $1.5 billion in
revenue even at our price point ... That's an enormous market."

This is far down to road so and actual therapy will not come about for years. In the future it would be an interesting stock driver as it moves through the FDA.

1 comment:

Unknown said...

In regards to researching stem cell stocks, there are many to choose from. Here is a concise list of a few strong ones in a report i found online...

Investing in Stem Cell Stocks

-Cheers!