Peer comparable goes public—$1.6 billion marketcap Gracell Biotechnologies went public (GRCL) yesterday and received a rousing market welcome. This is only a 3 year old company in a Phase 1 clinical trial in China. This is but another apropos example of the glaring disconnect in valuation for Hemostemix realtive to market peers.
10 years of data, 500 patients tested and 91 patents around autologous stem cell therapy gives Hemostemix serious bio tech bragging rights. However, we have yet to see a major valuation alteration. As of today with 55.5 milion million shares o/s and a share price of 49 cents, HEM's marketcap sits at approximately $27 million Cdn. I remain steadfast in my belief this is one of those rare opportunities in the bio tech space whereby massive wealth creation for shrewd and insightful investors is highly possible. Imagine if HEM was on Nasdaq with a similar valuation as GRCL. Can you imagine? This is the best spec stock I've seen in ages.
Founded in 2017, Gracell is developing chimeric antigen receptor, or CAR-T, cell therapies to treat cancer. CAR-T refers to T cells, a type of white blood cell, that are modified in the lab to fight cancer.
Gracell’s therapy has produced some impressive results. In a Phase 1 trial in China, four of five patients suffering with relapsed T-cell acute lymphoblastic leukemia were treated with Gracell’s GC027 and showed minimal residual disease negative complete remission, or MR-CDR, four weeks later, the prospectus said. “Our Car-T therapy has been the magical bullet for those patients,” Cao said.
The biotech is able to produce its therapies much more quickly and at a fraction of the cost of its bigger competitors, Cao said. Gracell’s treatments, however, aren’t approved in the U.S., but the Suzhou, China company hopes to expand here, he said. Gracell plans to use its IPO proceeds to accelerate the clinical trials for its leading programs and to build an research and development center in the U.S., likely in the Bay Area, Cao said.
GRCL - Gracell Biotechnologies Inc.
NasdaqGS - NasdaqGS Real Time Price. Currency in USD
25.06 +6.06 (+31.89%) At close: January 8 4:00PM EST