Stem cell market heats up

Microscopic view of stem cell, by Yawp Barbarian

As stem cell research moves from the lab to the market, there are signs that investor confidence is heating up for regenerative medicine companies. Just this past November, there was a bidding war for a Canadian stem cell company, AnorMED Inc., which was finally acquired by Genzyme for $584M based on only one stem cell product passing Phase 2 clinical trials.

“We are very pleased to complete the acquisition of AnorMED which broadens Genzyme’s presence in transplantation and oncology through the introduction of a promising new product candidate for stem cell transplantation,” said H.A. Termeer, Chairman and CEO of Genzyme.

Expected to launch in 2008, Genzyme plans to commercialize Mozobil through its existing global transplant business to hematologists and bone marrow transplant centres in more than 50 countries around the world.

AnorMED’s stem cell product, Mozobil, increases the number of stem cells in the blood circulation, which is an important step in preparing a patient for a stem cell transplant. It helps patients who were previously not eligible to meet the target ranges needed for a transplant and raises the level of stem cells collected in those patients who are eligible, improving the viability of the transplant. Phase 3 clinical trial enrollment has been completed in multiple myeloma and non-Hodgkin’s lymphoma.

Other market signs include Osiris Therapeutics going public on August 4, 2006, and raising $38.5M with only one product on the market. The only adult stem cell product presently on the market, Osteocel is made from mesenchymal stem cells mixed with spongy bone material obtained from human donors and cadavers which don’t trigger an immune reaction. Surgeons receive it in a bottle and can scoop out the cells and implant them into bone fracture sites to accelerate healing. Shares of Osiris have jumped 142% since August and they have a present market cap of $377M.

Keep your eyes out for more exciting stem cell products to be released on the market. As the world begins to learn more about stem cell technologies, there will be potentially huge rewards for those who are in early, both for scientists and investors.

For more information on the bidding war for AnorMED, check out this article: Millenium loses AnorMED to Genzyme.