|News and media coverage may push "engineered human skin" stock|
|Friday, 29 October 2010 12:13|
I have been in New York chasing and researching a series of rumors surrounding a recently formed public company which licensed a tissue-engineered skin substitute technology from Switzerland based pharmaceutical leader Lonza in August.For those of you who are not BioMedReports premium subscribers and were not aware of the developments which led to a 17% jump in the stock this morning, so far I have reported that:
1. PermaDerm™ is being developed to be the only tissue-engineered skin prepared from autologous (patient’s own) skin cells consisting of both epidermal and dermal layers. A postage stamp-sized biopsy of the patient’s skin can be grown in the laboratory to a sheet of PermaDerm™ one hundred times its area in as little as thirty days. The company who licensed the technology is Regenicin (OTC: WDST). They acquired the license for that PermaDerm™ technology from Lonza (curently a $87 per share company) with the goal of obtaining approval for use in the U.S. and beyond from the FDA. Our sources told us that the process of dealing with U.S. regulators is already well underway. In fact, we are hearing previously undisclosed information that substantial clinical and safety data from use in humans has already been exchanged with U.S. regulators, but we have no way of confirming that since no one involved in that research or submission process would speak to us.
According to the company's own website, the technology utilizes the patient’s own cells to generate living, tissue-engineered skin. This skin can be used by catastrophic burn victims, patients with chronic wounds, and for use in reconstructive plastic surgery.
3. The company has been quietly assembling a top-notch advisory board and just upgraded their accounting firm (they dismissed its accounting firm, Silberstein Ungar, PLLC and replaced them with Rotenberg Meril Solomon Bertiger & Guttilla). We interpreted these actions as signs that Regenicin is preparing for some important developments and that their newly licensed skin substitute application could easily be of interest to the U.S. military. We noted also that Lonza has retained exclusive manufacturing rights for the PermaDerm™ product, but the commercialization efforts and a major portion of the profits appear to fall squarely on the shoulders of Regenicin.
4. We looked at the share structure and behavior of the stock, and now revisit that topic here. It appears that at least one of the funds who helped secure $3.25m for Regenicin through convertible loans and private placements of common stock have been selling their free trading shares "paper" and are likely to be holding their warrants for the longer term. This is not an unusual move at all by some of these financeers and as we noted on the chart, the stock had sold down to $.70+ at one point before picking up momentum. Since announcing these developments to our subscribers a few days ago, the stock has seen increasing volume, but it has basically traded sideways and formed a nice consolidation pattern. As we look at the volume (caused almost entirely by our premium members) one can only imagine what may happen to the stock price after this story becomes more widely published and disseminated. The process of widely dispersing the PermaDerm™ story begins tonight.
We have been told by several sources that ABC World News with Diane Sawyer will feature a segment about this break-through technology on tonight's (Friday night's news) broadcast. CBS and other networks are expected to join in covering the story in the days ahead.
In July, CBS' 60-Minutes' Morley Safer filed a segment focusing on how U.S. soldiers return from battle horribly maimed. "There is only so much medicine can do," said Safer. "But we may be on the path to a new technology in which quite literally, we will be growing new body parts."
A project to engineer a human ear was one of several similar efforts aimed to help injured servicemen and women. The ultimate goal of biotech companies and universities currently involved in this science- along with major financial support of the U.S. Millitary- is to help solve the shortage of organs and tissues available for transplantation, as well as to develop cell therapies to restore function to damaged or diseases organs. The Armed Forces Institute of Regenerative Medicine (AFIRM), which is a federally-funded initiative has two consortiums made of up almost 30 institutions that are working to develop regenerative medicine therapies to help "wounded warriors" and it is very plausible that U.S. military has chosen to help fund and push PermaDerm™ out of the lab and into full use in humans. If so, then we would not be surprised to see tens of millions of dollars in government research funds alloted to Regenicin and Lonza.