US Stem Cell Inc (OTCMKTS:USRM) has lived up to expectations as a nice recovery play. Investors who took time to read our bullish thesis have been rewarded a great deal, on the stock rallying by more than 200%.The chart below clearly shows that the stock is trading in an uptrend after shedding a significant amount of market value last year. USRM Daily ChartA spike to the $0.07 level, on increased trading volumes, continues to affirm suggestion that the momentum could push the stock to the $0.12 handle. Immediate support on any sell-offs is at the $0.05 handle.We remain bullish about U.S Stem Cell’s long-term prospects especially after the recent bounce back. The fact that the company is seeing an explosive increase in demand for its stem cell therapies, in our view is a catalyst that has the potential to push the stock even higher.Before we carry out a detailed analysis of recent developments, let us have a look at what U.S Stem Cell actually does in pursuit of shareholders value and growth.U.S Stem Cell is a biotechnology company focused on the discovery, development, and commercialization of cell therapies for the treatment of chronic and heart damage. The company has already unveiled MyoCell, a clinical therapy, designed to improve cardiac function in chronic heart failure patients. It also boasts of AdipoCell, a cell therapy with multiple treatment applications.While the company is currently working on a number of treatments, the real is opportunity will come into being on the regulatory approval of the therapies.Recent DevelopmentsA spike in demand for the company’s stem cell therapy comes as a surprise given that U.S stem cell space is still relatively young. The increase is a testament that clinics are starting to take note of the kind of impact stem cell technology could have in the medical industry in future.
"Our phones are ringing off the hook. Public demand is ramping up quickly, as Americans invest in educating themselves on stem cell therapy and alternatives to opioid protocols for chronic pain. Moreover, because stem cell therapy is an out-of-pocket expense, improved economic indicators are giving Americans more money in their pockets for discretionary spending, which is increasing opportunity for stem cell treatments," said Chief Science Officer Dr. Kristin Comella.
Revenue Growth Growing demand is already creating a revenue-generating opportunity for U.S Stem Cell therapy, which reported stellar financial result for its third quarter.Revenue for the three months ended September 30, 2017, was up 106% to $1.5 million. For the first nine months of the year, it was up 92% to $4.04 million. Gross profit, as a result, increased 158% to $1 million. Cash from operations was also up by 1004% to $1 million from negative $113k in 2016.AdipoCell Opportunity U.S Stem Cell is on the cusp of becoming a leader in Autologous Stem Cell Treatments. The company has already supplied 10,000 kits of the AdipoCell product because of its growing relationship with 287 clinics in the U.S. Over 700+ Physicians are currently offering the company’s proprietary stem cell products and services.AdipoCell provides physicians an easy way to separate potent stem cells from patient’s fat cells, which are then reinserted in a minimally invasive procedure. U.S Stem Cell is the premier company in the U.S that manufactures and markets adipose/stem cell separation kit.The company has also developed a training program for physicians who want to learn how they can use stem cell to treat various conditions.
"The need for readily available stem cell procedures that physicians can offer their patients as an alternative to addictive pain medications, which has caused an opioid crisis in America, proves the time for regenerative medicine as a part of regular physician practice and pain management is long overdue,” said Dr. Comella.
What Next for U.S Stem Cell U.S Stem Cell has positioned itself to become a leader in the regenerative medicine space specializing in physician training and stem cell products. Given that the U.S is still in the early stages of stem cell adoption, the company remains well positioned to enjoy fast mover market advantage.The company has already started to reap rewards of years of investments, depicted by growing demand and robust revenue growth. Given that, the company’s revenues are growing by double digits, it is only a matter of time before the company generates positive cash flow and start returning shareholder value.As the U.S healthcare landscape becomes tolerant to regenerative medicine, U.S Stem cell should be able to generate significant returns given its growing relationships with medical clinics.The company is in the process of opening up to 10 new treatment centers over the next twelve months as it looks to take stem cell treatment mainstream. The expansion drive complemented by efficient debt management are some of the catalysts expected to push the stock higher from current levels.Disclosure: We have no position in USRM and have not been compensated for this article.
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