FinancialBuzz.com News Commentary
According to a report by Global Market Insights, Inc., the Biotechnology Market size is projected to reach USD 775.2 billion with 9.9% CAGR by 2024. Based on technology, the industry is segmented into tissue engineering and regeneration, fermentation, PCR, nanobiotechnology, chromatography, DNA sequencing, and more. In recent years, the tissue engineering and regeneration segments have went through rapid growth, and accounted for highest revenue, valued at over USD 104.5 billion. Other segments such as the nanobiotechnology, fermentation and cell-based assay segments will experience strong growth thanks to rising R&D investments by various biotechnological and pharmaceutical companies. Avalon GloboCare Corp. (OTC: AVCO), Sangamo Therapeutics, Inc. (NASDAQ: SGMO), Athersys, Inc. (NASDAQ: ATHX), Atara Biotherapeutics, Inc. (NASDAQ: ATRA), Vericel Corporation (NASDAQ: VCEL)
The regenerative medicine segment has emerged with promising approaches to treat complicated degenerative disorders in recent years. According to Markets and Markets the global Regenerative medicine market is expected to reach USD 38.70 Billion by 2021 from USD 13.41 Billion in 2016 at a CAGR of 23.6% from 2016 to 2021. Emerging technological advances in cell-based and gene therapies are major factors contributing to the industry’s development.
Avalon GloboCare Corp. (OTCQB: AVCO) last week announced breaking news that, “financial results and provided a business update for the first quarter ended March 31, 2018.
First Quarter 2018 Highlights:
Revenues increased 365% to $307,913 for the first quarter ended March 31, 2018;
Cash at March 31, 2018 was $2.1 million;
Teamed up with Weill Cornell Medicine to establish joint translational research initiative in stem cell technology and regenerative medicine;
Formed strategic partnership with major biomedical enterprise Da An Gene Co., Ltd. (“Da An Gene”);
Majority-owned subsidiary, GenExosome Technologies Inc., launched its U.S. operations in Ohio;
Formed joint laboratory with top-ranked hospital in Shanghai for regenerative exosomics;
Submitted application for Nasdaq listing.
David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare Corp., stated, “We made significant progress in the first quarter of 2018. We started off the year by forming a strategic partnership with Da An Gene, which is a leader in the molecular diagnostics market. We believe this partnership will help significantly accelerate our product development and commercialization by leveraging Da An Gene’s genomic sequencing and profiling platform, as well as its commercial network.”
“We have continued our expansion in the U.S. by launching operations of our GenExosome subsidiary in Ohio, where we plan to market and distribute our Exosome Isolation Systems. We are making progress with our commercial launch and believe this technology has the potential to transform the liquid biopsy and regenerative medicine markets by making exosome-specific diagnostics and therapies readily available and commercially viable. Continuing our U.S. growth, we have also jointly established a translational research training program with the Shahin Rafii Laboratory of the Division of Regenerative Medicine at Weill Cornell Medicine in New York. The joint laboratory provides us access to a world-class stem cell facility along with the existing clinical resources available to us through the Lu Daopei hospital network,” continued Dr. Jin.
“Importantly, we are moving forward with our plans to list on NASDAQ, which we believe will provide us greater exposure within the investment community as we execute on our upcoming milestones,” concluded Dr. Jin.
Revenues for the first quarter ended March 31, 2018 were $307,913 versus $66,286 for the first quarter ended March 31, 2017. The increase in revenues was due to property rental income, development services and sales of developed products. Operating loss for the quarter ended March 31, 2018 was $1.3 million versus operating loss of $0.5 million for first quarter ended March 31, 2017, which reflects increased SG&A expenses to support the anticipated growth, as well as an increase in public company expenses in advance of the planned listing on a national exchange. Net loss for the first quarter ended March 31, 2018 was $1.55 million or ($0.02) earnings per share, versus net loss of $0.55 million or ($0.01) earnings per share for the first quarter ended March 31, 2017.”
Sangamo Therapeutics, Inc. (NASDAQ: SGMO) is focused on translating ground-breaking science into genomic therapies that transform patients’ lives using the company’s industry leading platform technologies in genome editing, gene therapy, gene regulation and cell therapy. Sangamo has exclusive, global collaboration and license agreements with Kite, a Gilead Company, to develop next-generation autologous and allogeneic engineered cell therapies for the treatment of cancer using zinc finger nuclease genome editing technology; with Pfizer Inc. for gene therapy programs for Hemophilia A; with Bioverativ, a Sanofi Company, for hemoglobinopathies, including beta-thalassemia and sickle cell disease. On April 27, 2018, the company announced that the California Institute for Regenerative Medicine (CIRM) has awarded an $8 million grant for Sangamo to evaluate ST-400, a gene-edited cell therapy candidate for people with transfusion-dependent beta-thalassemia.
Athersys, Inc. (NASDAQ: ATHX) is an international biotechnology company engaged in the development of therapeutic products designed to extend and enhance the quality of human life. The Company is developing its MultiStem® cell therapy product, a patented, adult-derived “off-the-shelf” stem cell product, initially for disease indications in the neurological, cardiovascular, and inflammatory and immune disease areas, and has several ongoing clinical trials evaluating this potential regenerative medicine product. Earlier this month, the company announced its financial results for the three months ended March 31, 2018. The company said Revenues decreased to $1.1 million for the three months ended March 31, 2018 compared to $1.5 million for the three months ended March 31, 2017. Progressed Phase 1/2 study evaluated MultiStem therapy in acute respiratory distress syndrome (ARDS) patients.
Atara Biotherapeutics, Inc. (NASDAQ: ATRA) is a leading T-cell immunotherapy company developing novel treatments for patients with cancer, autoimmune and viral diseases. The Company’s off-the-shelf, allogeneic T-cells are bioengineered from donors with healthy immune function and allow for rapid delivery from inventory to patients without a requirement for pretreatment. Earlier this month, the company announced that it has expanded its collaboration with Memorial Sloan Kettering Cancer Center (MSK) to develop the next generation of genetically engineered chimeric antigen receptor T-cell (CAR T) immunotherapies. This agreement is the next step in Atara’s strategy to leverage the potential of the Company’s technology platform to develop genetically modified off-the-shelf, allogeneic T-cell immunotherapies to transform the lives of patients with serious medical conditions. Under the agreement, Atara will gain access to several of MSK’s innovative enabling technologies, including a novel CAR T construct that Atara believes has physiologic T-cell activation properties, as well as methods for designing CAR T immunotherapies.
Vericel Corporation (NASDAQ: VCEL) is a leader in advanced cell therapies for the sports medicine and severe burn care markets. The company markets two cell therapy products in the United States. MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Epicel (cultured epidermal autografts) is a permanent skin replacement for the treatment of patients with deep dermal or full thickness burns greater than or equal to 30% of total body surface area. On May 8, 2018, the company reported financial results and business highlights for the first quarter ended March 31, 2018. Total net revenues of $18.0 million compared to $9.4 million in the first quarter of 2017; first quarter 2017 revenues included a $2.8 million revenue reserve for Carticel® and MACI® related to a contractual dispute between one of the Company’s pharmacy providers and a third-party payer.