"One reason that cats are happier than people is that they have no newspapers. Gwendolyn Brooks

I had a question from a follower last week about a small biotech firm based near one of my residences in New York City. This $4 developmental firm is focused on diseases of the central nervous system. I had not looked at this name in quite some time, and there is very little research posted on this company, so we will revisit it in the paragraphs below.

Brainstorm Cell Therapeutics (BCLI) is a small biotech concern out of New York. The company is developing adult stem cell therapeutic products. It focuses on utilizing the patients own bone marrow stem cells to generate neuron-like cells that may provide an effective treatment initially for amyotrophic lateral sclerosis, Parkinsons disease, multiple sclerosis and spinal cord injury. It develops these therapies with its proprietary NurOwn platform. The shares currently trade at the $4 level and have an approximate market cap of $90 million.

Source: June Company Presentation

Pipeline:

Source: June Company Presentation

As can be seen above, the company has several mostly early stage assets it is developing in its pipeline.

By far the most advance therapy in the company's pipeline is its product aimed at ALS which is also known as Lou Gehrig's Disease. This rare condition affects some 450,000 individual worldwide, including some 30,000 in the United States.

Source: June Company Presentation

The company posted a second safety analysis around this Phase 3 trial in late October. Much more important top-line results from this key study should be out sometime in the fourth quarter of next year. 200 people have been enrolled in this critical study. Here are the company's conclusions about its Phase II trial.

Source: June Company Presentation

Top-line data from a Phase 2 NurOwn trial to treat Progressive Multiple Sclerosis should be out mid-year in 2020 as the only other trial milestone on the horizon.

It is hard to find many small biotech firms that get less coverage than Brainstorm. I can find only one analyst firm that has 'chimed in' on BCLI in 2019. That was Maxim Group five weeks ago which maintained its Buy rating and $9 price target.

Notably, no insiders have sold shares in this firm since late in 2015. Earlier this month, the CEO, CFO and CMO purchased just over $65,000 in shares in aggregate. Although this is hardly a big insider buy, this was the first insider activity in the stock since January of this year.

The company ended the third quarter with just over $2 million in cash and marketable securities on the balance. It also has remaining non-dilutive CIRM and IIA grants that amount to approximately $5.9 million. Given Brainstorm burned through just over $5 million, some sort of capital raise is very likely on the horizon.

According to a recent interview posted on Seeking Alpha with the company's CEO, there are several other potential competitors in the ALS also conducting late stage trials. Brainstorm's leaders believe NurOwn's effort stands out in 'by being autologous and because it can produce high levels of neurotrophic factors. Moreover, unlike most stem cell competitors, it's delivered directly into the spinal fluid through bimonthly lumbar punctures, unlike others that need an invasive surgical procedure "that carries considerable morbidity".'

The company's platform is intriguing. However, there simply doesn't seem to be enough information to make an informed decision around this name especially in light of a coming capital raise. I offer up this analysis in response to an inquiry and because there is little posted here on Seeking Alpha on this name.

"There is, incidentally, no way of talking about cats that enables one to come off as a sane person. Dan Greenberg

Bret Jensen is the Founder of and authors articles for the Biotech Forum, Busted IPO Forum, and Insiders Forum

I present and update my best small-cap biotech stock ideas only to subscribers of my exclusive marketplace, The Biotech Forum. Try a free 2-week trial today by clicking on our logo below!

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Read the original:
Reading Up On Brainstorm Cell Therapeutics - Seeking Alpha

Comments are closed.