Stem cell therapy developer Athersys (NASDAQ:ATHX) plans to begin phase 2 clinical trials of its MultiStem therapy for stroke and heart attack patients by the end of the year.
Moving ahead with its stroke therapy is key for Athersys because that application represents its biggest market. CEO Gil Van Bokkelen pegged the potential stroke market at $15 billion in a conference call with analysts and investors announcing the Cleveland-based company’s second-quarter financial results.
Van Bokkelen mentioned two other key upcoming milestones for the stem cell development firm: First, completing enrollment in a phase 1 graft vs. host disease trial in the “near term.” Second, the company expects to report top-line data by the end of next year on a phase 2 trial for inflammatory bowel disease. Big drugmaker Pfizer is collaborating with Athersys on that study, for which Van Bokkelen said enrollment had been going slower than the companies had initially hoped.
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Athersys’s MultiStem is an off-the-shelf stem cell treatment derived from the bone marrow of adults or other nonembryonic sources. The technology has shown promise in reducing inflammation, protecting damaged tissue and forming new blood vessels.
Van Bokkelen acknowledged that, like the rest of the market, Athersys’ shares had taken a substantial hit in recent days. “There’s not much we can do about that,” he said.
“We believe our stock is substantially undervalued and represents a compelling investment opportunity,” he said.
For the second quarter, Athersys’s revenue grew 26 percent to $2.4 million. The company’s net loss increased slightly to $3.3 million.
Athersys finished the quarter with $20 million in cash on its balance sheet. In response to an analyst’s question about that amount, CFO B.J. Lehmann said, “We feel like we’re in a relatively good position from a cash perspective.”
