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The Case for Investing in Regenerative Medicine in 2021
Political change along with updated White House priorities have certainly created a need to review investment portfolios. As the national focus shifts from one area of fulfilling citizens’ wants and needs to another, some industries are getting more attention while others are put on “hiatus.” Weeding out holdings of sectors getting less federal support, and adding those that could benefit from new attention puts the probability for investment success more on your side. We’ve seen this with the rush toward infrastructure stocks and building materials. ESG companies are similarly enjoying their moment in the sun. Digging past the larger headlines, investors can often find opportunities that aren’t well covered by the media, opportunities where the biggest move has not been missed.
Focusing
Last month while investors were focused on earnings season, cryptocurrencies, and interest rates, the administration released an important federal funding update that eases restrictions related to stem cell research. The update also removes a ban put in place two years earlier on important medical research using human fetal tissue. This support opens up an area of stem cell work that may lead to breakthroughs in regenerative medicine, treatments of disease, and understanding issues of aging.
Although the research dollars would be headed to centers of research like the NIH or medical research centers at U.S. colleges and universities, this research is shared. Further, it is not uncommon for centers for research to work with and provide financial support to private companies for important work. So the increased funds available can directly benefit publicly-traded and privately-owned companies in the field of regenerative medicine.
Discovering Companies
Life sciences companies in developing fields of research are usually sharply focused on a few small areas within the field. As an example, Lineage Cell Therapeutics (LCTX) is holding phase 1/2a clinical trials on spinal cord injury treatment, retina therapies, and phase 1 studies of a lung cancer vaccine. Whereas another publicly-traded company working on stem cell treatments has more of a focus on aging, organ maintenance, and tissue repair is Longeveron (LGVN). How does an investor learn how to better understand the value between the different fields of work, the different stages of development, legal and ethical issues, and develop a list of companies to follow? A good way to jumpstart your knowledge base is to hear directly from the companies at a conference or summit.
Each year the Regenerative Medicine Foundation (RMF) holds its World Stem Cell Summit. This June 16th the summit will be conducted virtually. The event is online and at no cost to registered Channelchek users. This is a perfect opportunity for investors to learn of the various disciplines, sharpen their knowledge of the different stages of medical developments, and perhaps become inspired by one or more of the presenting companies or interviews held with their management.
Take-Away
The year has been full of winning investment sectors and themes. One area less covered has been regenerative medicine and last month’s lifting of federal support barriers.
The businesses researching stem cells to enhance longevity, regenerate life-changing cells and organs, and provide tomorrow’s breakthrough treatments are complex. Investors immersing themselves in education, discussion, and interviews with management will have a strong advantage when developing their watchlist of these companies. The World Stem Cell Summit can serve as the no-cost place online to receive all this.
A link for more information is provided below.
Sources:
https://www.msci.com/our-solutions/esg-investing/esg-indexes
