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I love the part where even in tough time they're stable.
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20 mil in R&D in 2012
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Good up and coming product line in the works.
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Following usubanas advice.
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Inflammatory bowel disease Ph 2 results in fall 2013; stroke (HUGE market) Ph 2 in Q2 2014. At 85M market cap, if any of those programs work, this will be more than a 10-bagger.
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Very clean balance sheet, possibly a result of a secondary offering they did last year.
Insider ownership uptrended though still small.
Hardly the safest pick I've ever made but I'll gamble a bit trying to get my score into positive territory.
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Athersys seems to have survived their obligatory dilutive financing with a minimum of damage to their market cap, perhaps because it was obvious they would need one months in advance. The stock is now at the same level it was in December 2009 before it quintupled overnight on word of a licensing deal with Pfizer for MultiStem. Lesson learned in how to trade partnerships with low upfront payments. Hopefully the stock won't revisit the all-time low of 0.34 before they can manufacture a positive catalyst from phase II trials of MultiStem in stroke and ulcerative colitis.
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I believe that the dilution of 17 million shares (half of the current float) will bring Athersys down below the $1 mark. I'm just hoping that I can capitalize on a quick jolt to the share price and get out of this call in a week or so.
I will definitely give this a green thumb after it resumes it's slide. There are too many catalysts in the next year for this to not experience a run-up. If the company hits on a few of its trials then Wall Street will have to take notice (I'm sure Seeking Alpha will be pumping like crazy as well). The phase II ischemic stroke trial is probably the most risky near-term binary event for the company. Many trials targeting ischemic stroke have "impressed" in early trials only to lay an egg in later trials. Will stem cells be any different? We will see.
For those of you that follow me or read my writing on TMF Blogging Network, you will be surprised to know that I have a small, speculative position in ATHX. I built it up during college before I really knew what it meant to invest or how to read financials, but I have no problem hanging on and gambling with a little bit of my money. Besides, the potential reward of Athersys' Multistem will certainly make things interesting given the sub-$40 million market cap. Oh yeah, and my breakeven is $2.64 - so I'm stuck for now. Hopefully the dilution hits hard before any catalysts so I can be tempted to buy more shares for the first time since 2010 and drastically lower my entry point.
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http://seekingalpha.com/article/311356-athersys-shares-poised-to-move-higher
http://biotechstocktrader.com/preventing-the-problem-before-it-occurs-athersys-meets-with-fda-to-discuss-novel-approach-to-suppressing-graft-versus-host-disease-in-leukemia-and-other-cancer-patients-401/
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Great place to park speculative money. Anything stem cell has sex appeal that could really pop on positive news. Partnership with PFE says a lot about the science behind this company and so far management seems very savvy about locking up patents and forming strategic partnerships. This is my BIG speculative play.
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Connection to Pfizer shows legitimacy. Management is top notch and patents for stem cell research puts this Athersys in a great position to do well for a long time.
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Waiting patiently for a very successful clinical trial to see a big jump. Long term game, this small company is ran by expert-in-field scientific talent and very likely to strike a home-run
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This is a real money stock as well, purchased right around this amount very recently.
Their flagship product, MultiStem, appears to have application in a wide range of areas, from leukemia to stroke. The Phase I trials are complete, and the product has been pretty successful in stroke victims. The fact that it's efficacy is compromised by how soon it can administered to the stroke victim makes little impact. ALL interventions with stroke victims lose efficacy over time.
However, the positive results have so far only been seen in animals. The company will probably need to raise further capital.
If you can tolerate high risk, consider adding Athersys (it's my highest risk stock in my real life portfolio).
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As of December 2010, Athersys is a speculative stock due to the small revenues, continued losses, and potential share dilution. With a market cap of under $50M, a share price of roughly $2.50 and 70K share per day trading volume, I think this one has been off of wall street's radar. On the other hand, I think Athersys is a small gem of a company that has lots of potential. Athersys has no debt, and roughly $15M in cash as of their last 10Q. Of most interest to me is their Multistem product. They have had success with their multistem product for acute myocardial infarction and for stroke in animal models, but no conclusive statistically valid testing has been done in humans yet. So far the results are limited (Phase I), but have been promising to date even though it is still in the early stages.
The multistem product is a biologic product manufactured from stem cells. It is somewhat unique in the stem cell area because it acts more like a drug in that it is administered through an IV or catheter and is flushed from the body naturally. The stem cells are derived from adult stem cells (i.e. bone marrow from a qualified donor) and does not involve embryonic stem cells. From one acceptable donor, Athersys is able to create hundreds of thousands of doses of the product. The product also has a shelf life of 4 years. The product does not require the use of immune suppressive drugs or tissue matching between donor and recipients and it has a consistent safety profile. Current applications of multistem are being pursued in the areas of inflammatory bowel disease (partnered with Pfizer), stroke and acute myocardial infarction (partnered with Angiotech). In AMI (i.e. heart attack), multistem is designed as a supplement to the current standard of care and not a replacement. Management has been effectively utilizing partnerships at both the university and commercial level to help with development from both a cost and capability standpoint while maintaining a reasonable cash burn rate to date. They have also been very conscious of working with the FDA to develop a strong safety profile for their product which may be leveraged in the future if they try to extend the application of the product to different areas and to allay any safety concerns the FDA may have. I think the current share price already prices in some future share dilution.
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Product appears commercially viable and already has a nice partnership agreement. Upcoming presentation of phase I data in heart patients should provide a nice boost, and an opportunity to gauge interest from other partners.
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