This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Biotech Stock Mailbag: Cytori Therapeutics

Stocks in this article: CYTX BPAX VRTX MRK YMI INCY

BOSTON ( TheStreet) -- I hope everyone will join me at 11 a.m. ET today for the first-ever Biotech Stock Mailbag Live Chat. Check TheStreet's web site for a link when the chat goes live.

I'll answer your questions and respond to your comments in what I hope will be an informative and fun discussion about the current state of the biotech investment sector. The live chat is particularly timely with the ASCO abstract release on Wednesday, so definitely bring your cancer drug stock questions. A reader asked me to throw some biotech stock polls into the live chat, so yes, there will also be polls galore.

This week's email and tweets:

Fred B. asks, "Any comments on Cytori Therapeutics (CYTX) announcement about using fat cells for regeneration."

Yes, let's talk about Cytori again, which is newsworthy after this week's press release concerning another "independent clinical study" (that's Cytori's description) of stem cell-enriched fat grafting in breast reconstruction surgery.

Twenty-three women requiring breast reconstruction surgery underwent a liposuction procedure to remove fat from the abdomen or thighs. The fat was then processed using Cytori's Celution System device, which extracts stem cells that reside naturally in fat tissue. Once the stem cells are extracted and enriched by the Celution device, they are mixed back into the fat. Surgeons inject this stem cell-enriched fat graft into the patients' breasts as part of the reconstruction procedure.

The results of this study, conducted in the U.K., showed that 19 of the 23 women, or 82%, were satisfied with the results of their breast reconstruction. Surgeons were also happy with the results, according to Cytori.

The results in the Cytori press release sound promising, but let's think about this study for a second. What's responsible for causing the satisfaction observed by these patients? Is it the stem cell-enriched fat? Or is it just the fat itself?

It's an important question scientifically and financially. A study proving that "enriched" stem cells help fat-tissue grafts implant better or prevents fat grafts from being reabsorbed into the body would be a significant scientific finding and advance the nascent field of stem cell research.

Such a finding could also be a business boon to Cytori because it would conceivably convince regulators to allow the company to make specific medical claims about the stem cells that pop out the back of its Celution System device. With that kind of regulatory approval, Cytori could sell a lot more Celution System machines and maybe even get insurers to reimburse for the procedures.

Unfortunately, the U.K. study of those 23 women doesn't answer this important question at all because the study fails to compare the efficacy and safety of breast reconstruction surgery using Cytori's expensive stem cell-enriched fat tissue to the same procedure using standard, relatively inexpensive, fat tissue (which by the way, also contains stem cells, just not processed through a machine.)

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,643.73 +286.86 1.65%
S&P 500 2,046.61 +33.72 1.68%
NASDAQ 4,730.5330 +86.2210 1.86%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs