U.S. Stem Cell, Inc. (OTCMKTS: USRM), is engaged into development of effective cell technologies to treat variety of diseases and injuries. USRM’s discoveries include multiple cell therapies in various stages of development that repair damaged tissues throughout the body due to injury or disease so that patients may return to a normal lifestyle. The company was founded in 1999 and is based in Florida.
Regenerative medicine is an emerging field for regeneration, repair & replacement of damaged human tissue and organs. The global regenerative medicine market is likely to reach a cumulative valuation of US$7 billion by 2019. USRM’s focus on moving up the value & marketing chain through signing new licensing agreement & entering into partnerships is likely to enrich its business strengths.
The company’s Chief Scientific Officer, Kristin Comella recently published a paper on the Implantation of SVF in patients with Degenerative Disc Disease. The study focused on the implantation of stromal vascular fraction (SVF) in patients suffering from degenerative disc disease. Patients were monitored for a period of 6 months post-treatment, noting considerable decreases in pain and increases in flexion.
USRM is in the process of launching new clinics and programs in the Middle East and China that will feature its technologies, therapies, and products. Also, it signed new licensing agreement with High Rising Group to open clinics throughout the Middle East, with locations in Dubai, Kuwait, and Qatar. Additionally, it entered into a partnership with Hong Kong Yihe Regeneration Medical Technology, to provide Chinese patients direct access to USRM’s treatments and regenerative therapies at its Sunrise, Florida clinic.
USRM’s product specific marketing partnerships with global players is likely to enhances revenue growth prospects for the company given its product development capabilities and marketing network of its partners in different geographies. Notwithstanding USRM positive growth plan, meaningful & sizeable contribution from the same is partially constrained due to large investment requirements and still evolving commercialization pathway for its product pipeline. Also, overseas partnerships might face initial integration/gestational issues.
For 3rd Quarter, USRM’s revenue up by 31% to from $557K in Q3 2015 to $729K in Q3 2016 & Net loss improved 17% from $264K in Q3 2015 to $219K in Q3 2016
About the company:
US Stem Cell, Inc. (formerly Bioheart, Inc.) is an emerging enterprise in the regenerative medicine / cellular therapy industry. The company is focused on discovery, development and commercialization of cell based therapeutics that prevent, treat or cure disease by repairing and replacing damaged or aged tissue, cells and organs and restoring their normal function. The management believes that regenerative medicine / cellular therapeutics will play a large role in positively changing the natural history of diseases ultimately, leading to, lessening patient burdens as well as reducing the associated economic impact disease imposes upon modern society.
USRM’s business includes three operating divisions (US Stem Cell Training, Vetbiologics and US Stem Cell Clinic) including development of proprietary cell therapy products as well as revenue generating physician and patient based regenerative medicine / cell therapy training services, cell collection and cell storage services, the sale of cell collection and treatment kits for humans and animals, and the operation of a cell therapy clinic.
Key differentiating factor:
USRM focusses on harnessing body’s own healing potential, by reversing damaged tissue to normal function. USRM discoveries include multiple cell therapies in various stages of development that repair damaged tissues throughout the body due to injury or disease so that patients may return to a normal lifestyle. While most stem cell companies use one particular cell type to treat a variety of diseases, USRM utilizes various cell types to treat different diseases. Management believes that the unique qualities within the various cell types make them more advantageous to treat a particular disease.
About the industry:
Regenerative medicine is an emerging field for regeneration, repair & replacement of damaged human tissue and organs. Due to its critical contribution, regenerative medicine is becoming excessively popular in the treatment of neurological, cardiovascular, musculoskeletal, and orthopedic conditions. Bone and joint conditions are among the frontline applications of regenerative medicine. According to a study, global regenerative medicine market is likely to reach a cumulative valuation of US$7 billion by 2019.
During Jan’17, Chief Scientific Officer, Kristin Comella published a paper on “Effects of the intradiscal implantation of stromal vascular fraction plus platelet rich plasma in patients with degenerative disc disease”. The study focused on implantation of stromal vascular fraction (SVF) in patients suffering from degenerative disc disease. Patients underwent a local tumescent liposuction procedure to remove approximately 60 ml of fat tissue from the abdomen. The fat was separated to isolate the SVF and the cells were delivered directly into the damage discs. Patients were monitored for a period of 6 months post-treatment, noting considerable decreases in pain and increases in flexion.
Prior to this, USRM signed a new licensing agreement with High Rising Group to open clinics throughout the Middle East, with locations in Dubai, Kuwait, and Qatar. They will be treating patients suffering from chronic conditions, like COPD and Parkinson’s, with the goal of transforming their lives by helping them with these debilitating conditions.
Additionally, they also entered into a partnership with Hong Kong Yihe Regeneration Medical Technology, to provide Chinese patients direct access to USRM’s treatments and regenerative therapies at its Sunrise, Florida clinic.
Outlook over near to medium term:
Management maintains its stance that revenues and their associated cash in-flows generated from its businesses will, over time, provide funds to support clinical development activities as they do today for its general business operations. They believe the combination of its own therapeutics pipeline combined with its revenue generating capabilities provides USRM with a unique opportunity for growth and a pathway to profitability.
From an operational perspective, USRM is focusing to continue developing pioneering regenerative medicine techniques and technologies as they work to bring regenerative therapies to patients around the world.
Key Stock Influences
Some key influences that might govern future stock price performance include:
• USRM is still a research and Development Company and its MyoCell product candidate has not received regulatory approval or generated any meaningful revenues and is not expected generate revenues over the near term. Therefore, any positive announcement related with approvals, outcome of ongoing trials, synergies due to partnership efforts could be a temporary trigger for stock performance.
• Over medium to longer term, successful launch & commercialization of existing and future therapeutics products would be critical given the considerable investments undertaken in R&D and infrastructure development during the recent past.
• Given high investments incurred related to the marketing of USRM’s products in different markets, cash drainage in its ongoing R&D activities and uncertainties related to the outcome of recent partnerships, overall return/profitability indicators could remain muted during the initial gestation period. Also, optimal utilization of integration with other global players will be among the key business sensitivities for the company.
• The company is likely to generate substantial net losses and negative cash flow from operations over the near to medium term. Therefore, USRM’s available cash balance might not be sufficient to fund its anticipated level of operations for at least the next twelve months. Therefore, timely arrangement of incremental funding would remain a critical liquidity & financial flexibility factor.
USRM recognized revenues of $729,813 for three months ended September 30, 2016. These revenues were generated from the sales of kits and equipment, services, MyoCath Catheters, AdipoCell, and laboratory services. It recognized revenues of $557,612 for the three months ended September 30, 2015 from the sale of MyoCath catheters, AdipoCell, physician training, patient studies and laboratory services. The differential in revenue reflected an increase based on the products and services provided.
Operating Metrics & profitability:
Cost of sales was $332,522 and $243,940 in the three month periods ended September 30, 2016 and 2015, respectively. Associated gross margins were $375,651 (53.0%) and $313,672 (56.3%) for the three months periods ended September 30, 2016 and 2015, respectively.
Cash Flow & Balance Sheet:
USRM have generated substantial net losses and negative cash flow from operations since inception and anticipate incurring significant net losses and negative cash flows from operations for the foreseeable future. Historically, company have relied on proceeds from the sale of common stock and dependence on debt to provide the funds necessary to conduct research and development activities and to meet other cash needs. At September 30, 2016, it had cash and cash equivalents totaling $245,991 & working capital deficit as of such date was approximately $6.7 million.
On Friday, March 3rd, 17, USRM shares declined by -20.17% to $0.0319 on an average volume of 24.21M shares exchanging hands. Market capitalization is $2.64 million.
The current RSI is 64.3
In the past 52 weeks, shares of USRM have traded as low as $0.00 and as high as $0.35
At $0.0319, shares of USRM are trading above its 50-day moving average (MA) at $0.01 and 200-day MA at $0.01.
The present support and resistance levels for the stock are at $0.0261 & $0.0415 respectively.
Traders News Source Mission Statement
***Receive updates and real time small cap stock profiles from Traders News Source by sending a text from your mobile phone to the number “25-827” with the word “Traders” as the message. Opt out anytime by replying “Stop”
Our group is up over 300% since December 2016 with six profiles. Stay tuned our next small cap profile will be issued via text and email soon.
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.