$2-4 target for cynata

“Cynata’s Cymerus™ stem cell technology seeks to fill the critical gap in the process of taking stem cells from the laboratory into widespread therapeutic use– it potentially enables the manufacture of billions of human stem cells to facilitate commercial-scale production,” said Dr Macdonald.

“Today, there is great promise in human mesenchymal stem cells which work by stimulating the body’s own healing and regenerative systems”. The Cymerus™ technology potentially enables mass production of mesenchymal stem cells that, subject to further testing, may be used to remedy a broad range of diseases including cardiovascular disease, diabetes, diseases of the blood, lung, kidney and immune system diseases."

“Analogous to monoclonal antibody enabling technology: hybridomatechnology developed in 1975; therapeutic market value now in excess of US$44.6b.”

"The proprietary Cymerus™ technology seeks to address a critical shortcoming in existing methods of production of mesenchymal stem cells (MSCs) for therapeutic use, which is the ability to achieve economic manufacture at commercial scale. Cymerus™ does so through the production of a particular type of MSC precursor, called a mesenchymoangioblast (MCA). The Cymerus™ MCA platform provides a source of MSCs that is independent of donor limitations and provides a potential “off-the-shelf” stem cell platform for therapeutic product use, with a pharmaceutical business model and economies of scale. This has the potential to create a new standard in the emergent arena of stem cell therapeutics and provides both a unique differentiator and an important competitive position."

Source: CYP ASX Announcement 26-11-13

Reading CYP’s statements above shows that Cymerus™ has the potential to propel Cynata onto the global stage in a huge way in 2014, a year when many are expecting the stem cell sector to boom. CYP are not thinking local, they are thinking global and aiming big. With such a tight share structure; with proven management who propelled ISN from around 7c to 70c within a few weeks;$6m cash in the bank; a booming biotech sector; executive's incentives kicking in only when the share price hits target prices of up to $1.20 triggering executive's paying 40c per share; new large shareholders on board at 40c; the new Japanese legislative changes; and the University of Wisconsin connections = CYP could easily head north toward $4 and still look like good value relative to the scale of operations they are aiming toward. Big pharma companies may see an advantage in securing Cymerus early too, to prevent competitors gaining such valued technology too cheaply. When you start adding all of this together and remember what happened with MSB ($1.8B market cap) one starts to get a bit excited!