Stem cells have the potential to revolutionize the biotech landscape. They could be the drug companies that we're talking about for the next 50 years. As reported by Barrons over the weekend, big money is flowing into this area despite objections from President Bush.
New York City Mayor Mike Bloomberg has given $100 million and the state of California is putting $3 billion behind the science.
Still, many of the companies are nowhere near turning a profit. So this money could run out before any breakthrough comes through.
Fast Money’s featured guest on this topic is farther along than most stem cell companies with a bone treatment already on the market. Still, Baltimore-based Osiris (OSIR) therapeutics lost $125 million last year.
Osiris Chief Executive C. Randal Mills joins the guys on the fast line.
Mills says his company has two additional products that are in phase 3 clinical trials and could hit the market as soon as next year. He expects the public will benefit from stem cell research in the near term.
Dylan Ratigan asks if politics have a large impact on his business?
Not from our standpoint, replies Mills. Osiris only works with adult stem cells. However it does add volatility to the whole industry.
Dylan asks the guys what they think of company.
Jeff Macke says from an investor perspective there are better places to put money, although he supports stem cell research as a social cause.
Tim Strazzini advises bio-tech investors to pay careful attention to clinical research.
Guy Adami adds it’s a very volatile sector. OSIR traded at $29 in January and $12 in March.
Eric Bolling explains the charts don’t look great but there’s so much volatility in the space, the charts might not apply.
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