The State of the American Stem Cell Industry In 2012: Publicly Traded U.S. Stem Cell Companies By the Numbers

Published by Busa Consulting LLC, February 2013
36 pp.
15 Tables & charts
Downloadable PDF

The target audience for this report includes investors (individual, private equity, and venture capital), entrepreneurs and businesses in or serving the stem cell industry, and others with interests in the business of stem cell-based regenerative medicine or R&D.

Price: $195 USD

Topics Include:

EXECUTIVE SUMMARY
STEM CELL CONCEPTS
Biological concepts distinguishing the companies' technical strategies, briefly explained in layman's terms.
THE STEM CELL STOCK INDEX (SCSI): A BELLWETHER FOR THE INDUSTRY
THE SCSI FOURTEEN: DATA & PORTRAITS
Financial and technical performance characteristics of SCSI component companies in 2012. Good news, and bad news.
SCSI INDEX PERFORMANCE
Timeline performance vs. the S&P 500. Trading volume patterns. Comparison with 2011 performance. Key events. Share price and market cap performance of individual component companies compared and contrasted.
INSTITUTIONAL INVESTORS
Institutional investor stakes, in both dollars and percent of shares outstanding, for each component company. The top institutional investors and their positions at year-end.
DILUTIVE FINANCING
Graphical comparison of each component company's new share issuance activity for 2011 & 2012. Correlation between dilutive financing and share performance.
GRANT REVENUE
Government-awarded R&D grant totals - an important non-dilutive funding source and a potential measure of the scientific merit of each company's technical strategy.
LEADERSHIP COMPENSATION
The companies compared with respect to CEO plus board member compensation, versus various company size and performance metrics. A measure of the degree of alignment of insiders' interests with those of shareholders.
CLINICAL TRIALS
Component companies' 34 ongoing clinical trials: phases, expected completion dates, clinical indications, cell types, cell sources, trends.
WHAT MOVED THE MARKET IN 2012 (AND WHAT DIDN'T)
A case study of two nearly identical material events in 2012, with opposite impacts on their companies' share prices, illustrating what investors do and don't think is important.
MARKET SNAPSHOTS FROM 2012
HIGHLIGHTS FOR NON-SCSI COMPONENTS IN 2012

Excerpts From The Executive Summary:

A positive performance after last year’s steep losses, but still lagging
In 2012 the SCSI pulled out of its steep decline of the previous year and eked out a respectable gain (+10%, versus 2011’s -41%). Gainers increased to 8 out of 14 from last year’s 3. Nevertheless, the SCSI continued to lag well behind the S&P 500 for the 2011-2012 period.

Some big winners soared on just modestly good news

Stock-heavy deal flow continued

Institutional investors nearly doubled their stake in the market, but are still just testing the water
The majority of SCSI component companies cannot claim any significant investment by institutions.

Funding improved...but effective use of funds may be far from universal
Dilutive financing activities grew shares outstanding, and government-awarded R&D grants and contracts were up substantially. R&D spends were low given the very high cost of technology development and clinical trials - but a few SCSI component companies spent very little indeed. CEO and director compensation varied widely across companies, including some difficult to explain anomalies.

With most companies now in clinical trials, leading cell types and indications are becoming clearer

The market remains at the mercy of speculators
Very high market volatility driven by frequent overreactions to modest news, investors’ generally high tolerance of share dilution, and relatively low participation by institutional investors all suggest that stem cell share prices are still largely driven by speculators

About the Author

Following more than a decade as an NIH-funded faculty member in cell biology at the Johns Hopkins University, Dr. William Busa (President of Busa Consulting LLC) served as Vice President and Chief Scientific Officer of Cellomics Inc., the originator and industry leader in high content cell-based screening technology for pharmaceutical drug discovery. His tenure at Cellomics spanned the company's growth from a pre-revenue start-up to an operating company of over 100 FTEs, acquired by Fisher Scientific (now Thermo Fisher) in 2005. He also served as Director of Cell & Tissue Technologies at Becton Dickinson and Company's global R&D center, where he led technical and business collaborations with major pharmaceutical and regenerative medicine companies, guided the formulation of the company's 'cell therapy enablement' strategy, and led an organization bringing cell analysis and stem cell-related products to market.

Dr. Busa is an elected Fellow of the American Association for the Advancement of Science (AAAS). He has published over twenty peer-reviewed scientific publications in the fields of developmental cell biology and signal transduction biology, and is an inventor on multiple patents and patent applications related to cellular analysis.

Price: $195 USD

Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. At the time of publication neither Busa Consulting LLC nor any of its employees had any business relationships with companies named in this report, nor held any equity positions, long or short, in any of the stocks discussed in this report, and did not anticipate taking any such positions within the following thirty days.