Pluristem Therapeutics, Inc. (NASDAQ:PSTI)

CAPS Rating: 1 out of 5


Player Avatar zzlangerhans (99.85) Submitted: 12/14/2011 12:32:02 PM : Underperform Start Price: $2.64 PSTI Score: +11.08

I've made my negative feelings about Pluristem clear before, no need to reiterate everything here. The market cap has risen modestly from recent lows to 114M which gives me another opportunity to swat at the stock. I was amused by a recent letter to shareholders from the CEO, where he reiterated previously released 12 month phase I data for PLX-PAD cells in critical limb ischemia but provided absolutely no guidance on a timeline for more advanced trials. But I enjoyed the next part much more, where he describes the capability of their new GMP manufacturing facility.

"This facility will allow us to significantly scale up our manufacturing capacity and will enable us to produce PLX cells for the treatment of over 150,000 patients annually, meeting the expected near-term demand for our products."

Wow. Those are some high expectations considering you have phase I data from a small uncontrolled group of patients, and your "benefit" consists of a comparison with historical data. And what exactly do you mean by near-term? Even if your stem cells work, which they probably don't, it's going to be at least five years before you get through advanced trials and the FDA approval process. I think the CEO's wording was more realistic earlier, when he stated their data was "suggesting that PLX-PAD is potentially effective in treating patients suffering from Critical Limb Ischemia". That's exactly what we have here. A suggestion of potential efficacy. I'd like to counter that withn a suggestion of potential inefficacy.

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