One of the major stem cell sector investment questions involves the continued microcap valuation of most of the companies involved as several of them enter or proceed through Phase II clinical trials. Mesoblast of Australia has a valuation of 1.6 billion and has reached 2 billion in the past. No other company has come close, with Osiris and Geron (when Geron was in the stem cell sector) each reaching the 300 to 500 million range at some point along the way. Osiris currently has the highest sector market cap at 325 million, substantially less than Mesoblast. With several companies approaching or reaching the Phase II point in stem cell potential therapies that have shown promise, it is fair to ask when the investment world is going to take serious notice.
The Julia Group recently interviewed Geoff MacKay following his recent election as chairman of the board of the Massachusetts Biotechnology Council. MassBio is almost three decades old and is the nation’s oldest biotech trade organization. Mr. MacKay's comments are a very worthwhile read.