CTII ... put out by CapMark (Waaco Kid) as their stock pick for 1999
1999 STOCK OF THE YEAR
Cytotherapeutics, Inc.
(Nasdaq : CTII)
corporate-ir.net
Address: 701 George Washington Highway
Lincoln, RI 02865
Phone: (401) 288-1000
Fax: (401) 272-3485
Industry: Biotechnology & Drugs
Sector: Healthcare
Employees: 120
IR: Elizabeth_Razee@cyto.com
Corporate Governance
Richard M. Rose, M.D.
President and Chief Executive Officer
Cytotherapeutics, Inc. is engaged in the design and development of novel
cell therapy systems designed to deliver therapeutic substances to the
central nervous system. For the nine months ended 9/30/98, revenues
decreased 28% to $6.3 million. Net loss decreased 39% to $10.4 million.
Revenues reflect a decrease in the Development, Marketing and License
Agreement with Astra AB. Lower losses reflect a $8.3 million acquired
research and development expense.
Statistics at a Glance -- CTII Last Updated: Dec 30, 1998
Price and Volume (updated Dec 30, 1998)
52-Week Low $0.813
Recent Price $1.438
52-Week High $4.375
Beta 1.37
Daily Volume (3-month avg) 257.8K
Share-Related Items
Market Capitalization $26.4M
Shares Outstanding 18.4M
Float 12.3M
Dividend Information
Annual Dividend none
Per-Share Data
Book Value (mrq) $1.37
Earnings (ttm) -$0.64
Sales (ttm) $0.45
Cash (mrq) $0.92
Valuation Ratios
Price/Book (mrq) 1.05
Price/Earnings N/A
Price/Sales (ttm) 3.17
Income Statements
After-Tax Income (ttm) -$11.5M
Sales (ttm) $8.17M
Profitability
Profit Margin (ttm) -141%
Management Effectiveness
Return on Assets (ttm) -27.82%
Return on Equity (ttm) -37.41%
Financial Strength
Current Ratio (mrq) 4.27
Long-Term Debt/Equity (mrq) 0.16
Total Cash (mrq) $16.9M
Shares Short as of Dec 8, 1998 49.0K
Short Ratio 0.24
Stock Performance
******
Detailed Research - Cytotherapeutics Inc (Nasdaq:CTII) As of 22-Dec-98
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CTII is going to rock the world...
by: ieatrubber 498 of 504
I think it will be an awesome thing to be holding stock (bought for less
than 1 1/2$$) in a company that cures something like Diabetes, parkinsons,
multiple sclerosis, or huntington's. This stem cell stuff is incredible. It
is amazing that they can actually cause damaged organs and nerves to
regenerate after being damaged.
There is no end to what this technology could do and CTII is constantly
registering patents or getting exclusive rights to the use of this technology.
I know that when the big news hits...I'm going to be holding a sackfull of
CTII.
Good luck folks and Merry Christmas,
Ratbert
*********
=== WAACO'S COMMENTS: In the tradition of Waaco's annual "Stock of the
Year" selections, in which the criteria is to find a paradigh-shifting
company of the future, whose business and/or technology is such, IF
SUCCESSFUL, it can change the direction of mankind or shift the Earth on
its axis, or something in between, the 1999 stock of the year is one which
is on the cutting edge of a technology that may call into question
everything we've ever thought about humanity and mortality itself.
If the company, a competitor or successor is successful in accomplishing
the company's goals, the concepts of life, quality of life, disease or the
lack thereof, will be turned on their ears.
CytoTherapeutics, Inc. is a leader in the development of cell-based
therapeutics. The Company's encapsulated-cell technology is designed to
treat a number of serious diseases and disorders of the central nervous
systems (CNS), including chronic pain, by delivering therapeutic proteins
directly to the CNS. The Company's stem cell programs seek to repair or
repopulate neural or other tissue that has been damaged or lost as a result
of disease or injury.
Imagine a world in which if your spinal cord is damaged, you can regenerate
it ... if you have a lung disease, you simply grow another, or in which
your children may not receive their inheritance until they are 140 because
you are 170 and still haven't passed on. While Geron is garnering the
publicity, recent articles in the Washington Po
st and Business Week say
CTII is far ahead:
Business Week Article Nov. 23 1998 page 58 title "Who will grow a liver
first? Geron may not be No.1 in the race to grow human organs.Medical
Technology Stock Letter says "CytoTherapeutics is much closer to the clinic
and more significant from an investment standpoint."
The article follows:
WHO WILL GROW A LIVER FIRST?
Geron may not be No. 1 in the race to grow human organs
On Nov. 6, scientists announced a major new advance: They had found a way
to isolate human cells that can grow and become any part of the body. News
stories predicted that so-called embryonic stem cells could one day grow
replacemEnt livers or build new muscle for failing hearts. ''We now have
the possibility of repairing degenerating tissues,'' says Thomas B. Okarma,
research chief at Geron Corp., the biotech firm that funded the research.
But other companies may already have found a quicker route to these
marvels. Already, Baltimore-based Osiris Therapeutics Inc. has regenerated
bone in animals using another type of stem cell. And in Lincoln, R.I.,
CytoTherapeutics Inc. plans to treat Parkinson's disease using a neural
stem cell. ''We're not talking about something 10 to 20 years away, like
Geron,'' says CEO RichArd M. Rose, MD. Says James D. McCament, editor of
Medical Technology Stock Letter, ''CytoTherapeutics is much closer to the
clinic and more significant from an investment standpoint.''
The key to these swifter therapies lies in the types of stem cells being
used. Geron snared the mother of all stem cells--a single cell that
theoretically can become any part of the body. Osiris and the StemCells
Inc. subsidiary of CytoTherapeutics are using stem cells already part way
down the developmental path. These cells are no longer able to create any
organ but are progenitors of specific body parts like livers or bone. And
because these cells are partly Specialized, scientists are much closer to
actual therapies. Indeed, medical researchers at University Hospitals in
Cleveland are already using so-called mesenchymal stem cells to try to help
women recover from side effects of breast cancer treatments.
Geron has to clear other hurdles, too: No one has any idea how to direct
embryonic stem cells to make, say, a liver. And even if Geron scientists
learn to direct embryonic stem cells down different developmental paths, it
may not be able to capitalize on its breakthrough. Along the way, they
could create the ''daughter'' stem cells that companies like Osiris and
StemCells have already patented. AnalySts predict the company will find
ways around the patents. But the embryonic stem cell hoopla could end up as
breathtaking science that can't realize its enormous potential.
*********
=== A similar article in the Washington Post related the advances of Geron
but then went on to state that Cytotherapeutics is "ahead". A partial
excerpt follows:
DRUG, BIOTECH SHARES RISE ON CELL RESEARCH REPORTS
Article 1 of 1 found
JUSTIN GILLIS
WASHINGTON POST STAFF WRITER
Saturday, November 7, 1998 ; Page H01
Section: Financial
Article ID: 9811220014 -- 692 words
Shares of genetic research pioneer Geron Corp. soared yesterday, and stocks
of many other drug and biotechnology firms got a boost as well, as small
investors went into a buying frenzy over breakthroughs that may permit
scientists to grow endless supplies of any kind of human cell.
*************
=== It is not certain that the company will get "there" without a partner
or without being acquired. In fact, the company acknowledges it needs a
partner. Even if the company is acquired or has to share its revenues
and profits with a partner, it still is the stock of the year, and who
knows, perhaps of the millenium. Here is a more recent article:
KRTBN Knight-Ridder Tribune Business News: Providence Journal-Bulletin, R.I
Copyright (C) 1998 KRTBN Knight Ridder Tribune
Business News; Source: World Reporter (TM)
Since it was reported that scientists at the University of Wisconsin and
Johns Hopkins University School of Medicine in Baltimore had located and
cultivated cells known as "embryonic stem cells," CytoTherapeutics ' stock
price has risen from less than $1 per share. Embryonic stem cells are early
cells in the development of humans, from which other specialized cells
develop. Researchers say they are unique in that they can divide
indefinitely when grown outside the body in the laboratory, and could
eventually be used to create tissue for transplants.
CytoTherapeutics , which has been developing products to treat central
nervous system disorders, has benefited from the national news because the
company holds a variety of patents relating to the neural stem cell, which
is the stem cell for the central nervous system. CytoTherapeutics hopes to
eventually commercialize a product in which neural stem cells would be
placed in the brain or spine to correct a central nervous system ailment
such as Parkinson's disease or multiple sclerosis.
Additionally, company officials say they are also working to develop a
method to discover the liver stem cell, in the hope of using the cells to
treat liver disease."These recent media events relating to work on neural
stem cells and embryonic stem cells have kind of refocused investors on the
fact that this is really important stuff,"Richard Rose, chairman of
CytoTherapeutics , said yesterday. "We're talking about a fundamentally new
way to treat devastating diseases. This is not small potatoes."Stem cells
are considered promising because they are so unique. Rose said that the
"marvel" of the neural stem cell is that after it is implanted in the
brain, it soon recognizes which part of the brain it is in and then creates
the "cellular structures" characteristic of that area. "If you put it into
the part of the brain that has neurons for smell, it becomes neurons for
smell," said Rose. "If you put it into the part of the brain that has
neurons more focused on memory, it will become those types of neurons. It
does exactly what it is supposed to do." CytoTherapeutics was formed nine
years ago to develop a way to treat such illnesses as Parkinson's disease
and chronic pain by encapsulating cells in a unique plastic material and
inserting them into patients. There they would emit certain substances to
diminish the disease. That product is still being tested on humans and has
not been commercialized. Rose said that CytoTherapeutics has been able to
grow the neural stem cells in the laboratory and transfer the human cells
into the brain of a rat. Once transplanted, the cells became the
appropriate cell type for the area of the brain where they were applied. He
said he expects clinical trials on humans to begin early next year.
Rose would not say which illnesses CytoTherapeutics plans to target with
its neural stem cell technology, saying only "We believe that there are a
number of highly attractive targets, both in terms of the size of the
commercial potential and the medical need." CytoTherapeutics does not have
any revenues from commercial products and finances its operations through
the sale of stock and partnership agreements with large pharmaceutical
companies. In 1995, for example, it signed a deal with Astra AB, a Swiss
pharmaceutical company, to help pay for its work in encapsulated cell
technology. Rose is currently looking for a partner to help finance the
stem cell research. "We need a partner," said Rose. "These are large market
and the cost for moving into them is substantial. I've been working on this
very hard for a year. We're at the last stages of the dance."
*********
=== Waaco is not the only one to suggest the unique potential of this company.
Ground Floor Newsletter this past month selected it Number One on its own
list:
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GROUND FLOOR * Friday, December 4, 1998 * E-mail Edition
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Ground Floor Updates
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This Year's Doublers Portfolio Is Bigger and (We Think)
Much Better--Six Overlooked Stocks in Dynamic Industries
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Ground Floor's 1999 Doublers Portfolio
Buy 12/2/98
Symbol Stock Traded Limit Price
CTII CytoTherapeutics NASDAQ 1-5\8 1-7\16
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