The failure to clinch a licensing contract for the flagship product AutoloGel from a top-20 global pharmaceutical company continues to haunt the fully integrated regenerative medicine company Cytomedix (OTC: CMXI). The company’s share price continued its downward spiral by another 9% amidst high volume.
Cytomedix, the developer of platelet and adult stem cell technologies for wound and tissue repair has three divisions of products and treatments based on autologous blood therapy. Autologous blood therapy essentially uses technology to refine and direct healing mechanisms produced naturally within the body. The AutoloGel System, being the only device cleared by the FDA for use in wound management, produces autologous platelet rich plasma (“PRP”) gel.
A month earlier, the company reported strong second quarter results aided by record sales in AutoloGel. However, the failure to reach an agreement with a potential AutoloGel licensing partner, a top-20 global pharmaceutical company, disappointed investors.
Having left with a $4.5 million non-refundable payment, Cytomedix claims to be in negotiations with new prospective partners for the device. From a peak of $2.05 per share in mid-June, the share price has lost more than half of its value in just four months time.
In early August 2012, AutoloGel was granted Coverage with Evidence Development (CED) by CMS (The Centers for Medicare & Medicaid Services) for the treatment of chronic non-healing diabetic, venous, and/or pressure wounds. The Paralyzed Veterans of America Summit 2012, held from the August 28-30, highlighted AutoloGel System.
Commenting on the program, Martin Rosendale, Chief Executive Officer of Cytomedix, said, “It is especially rewarding for Cytomedix to have a continuing education program highlighting the benefits of the AutoloGel System for the treatment of chronic wounds in SCI patients. Pressure ulcers and other chronic wounds are persistent medical challenges that compromise the health and quality-of-life for these paralyzed patients”.
The AutoloGel System was also highlighted in an oral abstract and a poster presentation at the 4th Congress of the World Union of Wound Healing Societies (WUWHS 2012) held from September 2-6 in Yokohama, Japan.
The company announced today that the AutoloGel System will be highlighted in three poster presentations at the Symposium on Advanced Wound Care Fall 2012 (“SAWC Fall 2012”) scheduled September 12–14 at the Baltimore Convention Center. The market, however, continued to beat down the stock.
Even though Zacks Small Cap Research has re-instated its optimism, the market is yet to digest the failed licensing talks with a major pharmaceutical company and continues to batter the stock. Cytomedix ended the day at $0.93, down $0.09 or 8.8% on a volume of 300,819 shares.