Stem Cells Work for Small Cap StemCells (STEM) and the Alternatives? CUR, BTX & OSIR

On Monday, small cap stem cell stock StemCells, Inc (NASDAQ: STEM), a peer of small caps like Neuralstem, Inc (NYSEAMEX: CUR), BioTime, Inc (NYSEAMEX: BTX) and Osiris Therapeutics, Inc (NASDAQ: OSIR), which are also working on stem cell treatments, surged 20.97% to $1.99 on positive news about the first group of patients in a clinical trial for one of its therapies. That news is bound to trigger more interest not only in StemCells, Inc, but in any other small cap stock involved in stem cell research or treatments.

Why Is StemCells, Inc (STEM) Rising and Why Will Could It Continue Rising?

StemCells, Inc is focused on the development of stem cells as therapeutic agents to treat damage to or degeneration of major organ systems like the liver and the central nervous system (CNS). In fact, StemCells, Inc was the first and only company to complete a US clinical trial using human neural stem cells where it tackled central nervous system disorders with its HuCNS-SC® product candidate plus its liver program was among the first of its kind, targeting the treatment of liver disease with the company’s proprietary hLEC™ human liver engrafting cells.

On Tuesday, StemCells, Inc announced it had completed treatment for three patients who had suffered a "complete" spinal cord injury at chest level and it reported that two of the patients had greater sensory function a year after treatment while one recovered to the point that the injury is now considered "incomplete." The company stated that as far as it knew, this was the first time a patient had experienced the kind of improvement observed after treatment with neural stem cells.

However, it should be remembered that StemCells, Inc is a small cap with no FDA approved products and revenues of $0.26M (most recent reported quarter), $0.25M, $0.64M and $0.54M for the past for reported quarters and net losses of $16.34M (most recent reported quarter), net income $0.83M and net losses of $10.23M and $7.21M. At the end of September, StemCells, Inc had $21.74M in cash or cash equivalents to cover total liabilities of $20.43M.

In addition, the stock has a volatile 52 week trading range of $0.59 to $2.67 a share for a market cap of $74.51 million plus its up 99% over the past year and down 87% over the past five years.

What About Alternative Small Cap Stem Cell Stocks

Other small cap stem cell stocks that trade on major exchanges which could interest investors include the following stocks:

• Neuralstem, Inc has patented technology giving it the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities. In January 2013, Neuralstem, Inc received FDA approval to begin a Phase I NSI-566 clinical trial for chronic spinal cord injury with the trial using the same cells and procedure as the company’s ALS trial. The company intends to target additional major central nervous system conditions with its stem cell platform, including stroke, brain cancer and Huntington’s disease. On Tuesday, Neuralstem, Inc fell 0.79% to $1.25 in double the normal trading volume for a market cap of $84.99 million. Neuralstem, Inc has a 52 week trading range of $0.42 to $1.96 plus the stock is up 3.3% over the past year and down 58.3% over the past five years.
• BioTime, Inc is a small cap biotech focused on near-term commercial opportunities in regenerative medicine and its core technologies center on novel stem cells capable of becoming all of the cell types in the human body. Products made from these stem cells are being developed by the company’s subsidiaries which concentrate on different medical specialties, such as neuroscience, oncology, orthopedics and blood and vascular diseases. On Tuesday, BioTime, Inc rose 1.68% to $4.24 (BTX has a 52 week trading range of $2.67 of $5.89 a share) for a market cap of $215.79 million plus the stock is down 25.7% over the past year and up 1,313.3% over the past five years – meaning there are some very happy long term investors in this one.
• Osiris Therapeutics, Inc is a small cap stem cell stock focused on developing and marketing products to treat medical conditions in the inflammatory, autoimmune, orthopedic and cardiovascular areas. Specifically, Osiris Therapeutics, Inc says its stem cell products have therapeutic because of their ability to regulate inflammation, promote tissue regeneration and prevent pathological scar formation. On Tuesday, Osiris Therapeutics, Inc fell 0.13% to $7.73 (OSIR has a 52 week trading range of $4.47 to $14.46 a share) for a market cap of $254.12 million plus the stock is up 60.4% over the past year and down 33% over the past five years.

The Bottom Line. Small cap stem cell stock StemCells, Inc could yet produce more gains for investors should the results of their clinical trial be replicated and eventually they come up with an FDA approved treatment – no doubt some years away. However, its also clear that StemCells, Inc and its small cap stem cell peers Neuralstem, Inc, BioTime, Inc and Osiris Therapeutics, Inc are not for risk adverse investors.