In a May 16, 2016,
press release, Edison Investment Research announced initiation of coverage on
International Stem Cell Corp. (OTCQB: ISCO). Edison describes itself as an
international equity research firm with over 110 analysts and professionals,
working with both large and small companies, as well as investors, wealth
managers, private equity and corporate finance houses.
Edison’s focus on
International Stem Cell Corp. centers around ISCO’s unique parthenogenetic stem
cell technology platform, and its anticipated superior therapeutic potential
for addressing health problems, specifically Parkinson’s disease.
Parthenogenetic stem cells (hpSC) are generated from unfertilized eggs, meaning
no viable human embryo is created or destroyed. The resulting cells thus bypass
ethical issues. At the same time, parthenogenetic stem cells express fewer
parental histocompatibility antigens, thus offering important immuno-matching
advantages and significantly reducing the risk of immune system rejection.
ISCO parthenogenetic
stem cells are seen as offering important qualities for the treatment of liver
and eye diseases, as well as diseases of the central nervous system such as
Parkinson’s. Of primary interest are diseases where, according to ISCO: “cell
therapy has been clinically proven, but treatment options are limited by the
availability of safe human cells”.
Parkinson’s disease
(PD) represents an especially important target market. The Edison report states
that:
“As many as 2-3
million people suffer from PD in the US and EU, according to the Parkinson’s
Disease Foundation (PDF), and there are currently no approved treatments to
slow or halt progression of the disease. If ISCO’s treatment proves effective
at slowing or halting disease progression, we forecast potential peak sales of
$2.8bn based on 2% of existing and 5% of newly diagnosed patients in the US and
1-2% of patients in the EU and RoW receiving treatment.”
The report also
points out that ISCO has other commercial operations that leverage its hpSC
technology, operations that provide revenue to support continued research into
therapeutic applications. According to the report:
“Using a
risk-adjusted NPV model, we value the company at $27m or $9.60 per basic share,
using a 12.5% discount rate and a 7.5% probability of success for the PD
candidate and a 10% discount rate and 90% probability for the skincare and
biomedical businesses.”
To view the full
Edison report, go to http://dtn.fm/wSz7R
For more
information, visit www.internationalstemcell.com
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