Why This Tiny Biotech Company with a Fully Funded Trial Underway Could Be A Stunner

BioRestorative Therapies (NASDAQ:BRTX) is a relative unknown in the world of biotechnology stocks, but that could change dramatically in the next two years.

What makes BioRestorative Therapies intriguing now?

  • BioRestorative Therapies has emerged from a substantial re-organization that involved experienced new leadership, a new capital structure, and $23 million in new funding with no debt. It’s a clean start for BRTX.
  • With its clean start comes an attractive valuation. BRTX is currently trading at $4 per share, which is a $15m market cap, under its current cash balance of $20 million
  • Management has initiated a new, fully funded Phase II trial harnessing BRTX’s proprietary cell therapy BRTX-100 to treat Chronic Lumbar Disc Disease (CLDD), a leading cause of chronic back pain. This treatment has the potential to transform the standard of care for the world’s aging population with a quick in-office application.
  • Chronic Lumbar Disc Disease is estimated to be a nearly $2 billion global market. An approval for BRTX in this space would be an enormous catalyst for the stock.
  • Clinical results in humans with cell-based therapies offer compelling proof of concept in durably alleviating the symptoms of CLDD, helping to de-risk this exciting program. By expanding autologous stem cells under hypoxic (low oxygen) conditions, BRTX-100 is intended for the harsh avascular environment of injured spinal discs, and the use of a patient’s own bone-marrow-derived cells (autologous) reduces the risk of complications. In previous testing, researchers have seen reduced disc bulge size, reported pain reduction, strength improvements, and an improvement in mobility up to 6 years after treatment. (See J Transl Med. 2016, Stem Cell Res Ther. 2017, J Transl Med. 2017, Transplantation. 2017)
  • Insiders keep dipping in. Executives have been making open market stock purchases through Q4 2021 and into early 2022, suggesting confidence in coming events for BRTX.
  • BioRestorative Therapies’ ThermoStem® program is an off-the-shelf cell therapy to treat metabolic disorders, including Type 2 Diabetes, using brown fat stem cells shown to regulate metabolic homeostasis. The company will meet with the FDA to discuss ThermoStem’s clinical path in early 2022.

How unknown is BioRestorative Therapies? The company has been mostly overlooked, trading at lows and a valuation below the company’s cash balance of $20 million in early 2022. Shockingly, the closest public company in this vertical is valued at over $600 million (Mesoblast Limited (NASDAQ:MESO)), or about 30X this smaller company.

It’s a recipe for explosive discovery as the BRTX-100 trial makes expeditious progress and the company moves forward with ThermoStem. Events in 2022 and 2023 will undoubtedly cast a new light on BioRestorative Therapies (NASDAQ:BRTX).

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