|Keeping our fingers crossed for Regenicin|
|Tuesday, 18 January 2011 11:19|
As a shareholder in Regenicin (OTCBB: RGIN), I was happy to see share prices spike late last week, now I'm hoping that investors who just jumped in can ride out the selling pressure.
As our readers may know, Regenicin is an exciting biotech company specializing in the development of regenerative cell therapies to restore the health of damaged tissues and organs.
The pull back continued despite an exciting announcement that more than $18 million in U.S. defense funding to develop the skin substitute grown from the patient's own cells had been provided to Lonza's Walkersville unit in order to develop and commercialize the PermaDerm product. That product's worldwide marketing rights had been licensed to Regenicin and the company is playing a critical role in the development and commercialization of the therapeutic candidate.
As we had suspected and reported at the time, one of the funds involved in helping to bring the company to public has been selling it's shares very aggressively. We had an opportunity to meet with the management team of the company after their presentation at the 4th annual OneMedForum at the Sir Francis Drake Hotel in San Francisco last week and while we were very impressed with the entire team (presenting at the conference was CEO Randall McCoy and senior Board Members Dr. Joseph Rubinfeld and Dr. Craig Eagle), we remained concerned that the stock still had overhang and would continue to suffer under selling pressure until the fund or individual who was actively selling against volume stopped doing so. As such we told officials at the company that we would not be covering the stock further or bringing it to the attention of our subscribers until that situation cleared up.
We were assured that the block in question was "almost out" and that the company was in position to make some progress on the scientific and regulatory side. In addition, we learned from other sources that one of the reasons the company had not been featured in the media as planned was mostly due to Lonza's conservative approach to the technology. That approach will change and the exciting technology should be much more visible in the media as soon as Regenicin is able to get the technology across the finish line at the FDA in one way or another.
During the presentation in San Francisco, Regenicin was able to introduce many investors to its unique business model and share its core business strategy for 2011. We were susrpised to learn that the company has plans for the technology beyond its application in re-growing skin. The company has dentified promising new therapeutic candidates that address other unmet needs in growing markets and they are very actively executing the most economical and expeditious pathway for achieving regulatory approval by the FDA- that includes preparing materials seeking a medical device exemption for Permaderm. Should their efforts be successful and the FDA agree to accept the data which the company presents, then a very short clock will start ticking for that compassionate use designation.
Regenicin board member, Dr. Rubinfeld, who was an initial founder of Amgen and Supergen stated that: "I was very pleased to be present and interact with the professionals at the forum. The feedback was largely positive and very informative."
We were happy to witness some of that feedback and enthusism ourselves, but we hope new investors in the company can weather what may be a rough ride up. As of this morning, the stock continues to suffer some selling pressure despite all the positive developments on the horizon. As promised, we will actively cover the news and developments at Regenicin. I think it will be very clear when the time is right, and we will bring you updates and news as soon as we see that.
Dr. Craig Eagle, a senior executive at Pfizer's who is a Regenicin board member and consultant, stated, "After hearing the positive feedback at the conference, I'm very enthusiastic about our future and what the new year holds for our business."
According to Regenicin's CEO, Randall McCoy, the burn treatment market in the US is a $3 Billion Dollar opportunity for the company. This coupled with a strong management team and board of directors, optimally positions Regenicin to achieve its corporate goals and mission in 2011-2012. Personally, I continue to believe that Regenicin is in an unusual and unique position, especially since they are such a young company. They may be able to transform into a multi-billion dollar company very quickly.
Let's hope the same kind of planning and forethought that got them into this position helps them clear some of the obstacles they are up against in the short term. I'm betting the bright group of scientists and leaders who are part of the team will find a way to do it.
Disclosure: Long RGIN