"The global stem cells market is expected to grow at an incredible CAGR of 25.5% from 2015 to 2022 and reach a market value of US$297 billion by 2022............."
As investors it is important to understand industry structure; what competitors are doing, the characteristics of the supply chain looks like, the barriers to entry, the regulatory framework, the addressable market opportunity... that sort of thing.
And a US$300bn market by 2022 is certainly a substantial addressable market.
Just one query, though:
If one reverse engineers the figures you've provided (i.e., a CAGR of 25.5% for a period of 7 years to arrive at a final value of $297bn), you can solve for a starting figure of $60.5bn in 2015. And therefore US$76bn for the current year (25% growth on 2015).
I checked the list of companies you provided: (Aastrom Bioscinces, (renamed Vericell), Celgene and StemCells Inc., and between them they today account - collectively - for well a little over $60m of turnover, out of the theoretical market size of $76bn (according to the figures you've quoted).
Therefore, to the curious mind, the logical questions that arise are as follows:
1. Given MSB currently generates close to zero Revenue, how does this reconcile with MSB being the world's self-acclaimed leading stem cell company? Looks to me like some other entity(ies) are several tens of billions of dollars ahead of MSB.
2. So, who is it that you have not included in your list of stem cell companies that is generating the 99.87% of industry's turnover? Because if its a publicly-listed company, then THAT (those) is (are) the company(ies) I think I should be urgently researching. Because clearly it (or they) are miiiiiles ahead of everyone else.
Unless, of course, the figures you have quoted are hogwash.
Because on what basis can MSB be said to be the industry leader when it generates no Revenues in a market that is the better part of $100bn in size?
MSB Price at posting:
$1.24 Sentiment: None Disclosure: Not Held
(20min delay)