Hemostenix (HEM.V) has been lifting off of late, and as we’ve seen some real upward movement in the pharmaceuticals/biotech space in Canada of late (See Onco Innovations and Voyageur Pharma as examples), I thought it might be time to clue y’all in to what this group has been up to.
In a nutshell, they’re in the ‘custom made stem cell’ game.
In layman’s terms:
Stem cells have been long known as being great for regenerating tissue. Taken from fetal umbilical cord blood, the cells that usually help babies grow in utero can also help older patients kick their systems into gear. There’s been a lot of interesting things done with spinal cord repair, brain regeneration etc.
The problem is, stem cell therapy is expensive, because harvesting umbilical cords is slow going, and using cells with different DNA to your own is considered problematic.
If only there was some sort of tech that allowed stem cells to be harvested from your own blood cells.
ENTER HEMOSTEMIX
- Innovative Technology:
- Hemostemix specializes in using the patient’s own stem cells to create treatments for severe cardiovascular and ischemic diseases, including Critical Limb Threatening Ischemia (CLTI), heart disease, and other regenerative needs.
- Core Product – ACP (Angiogenic Cell Precursors):
- ACP uses stem cells derived from a patient’s blood to regenerate tissue, restore blood flow, and reduce inflammation. It is safe, ethical, and scalable, with no foreign materials involved.
- Proven Clinical Success:
- In Phase II trials for CLTI, ACP demonstrated significant effectiveness:
- Ulcers healed in 83% of patients.
- Amputation rates dropped to 4.8% vs. 25% in the control group.
- Mortality rates decreased significantly.
- In Phase II trials for CLTI, ACP demonstrated significant effectiveness:
And what it can do for the extremities, it can also do for cardiovascular problems.
OKAY. As a type ii diabetic who gets the tingles in his toes, this treatment is VERY BIG on my radar. when your body doesn’t deal with sugar well, it ends up depositing in your extremities – toes, fingers, tallywacker – and if you don’t get your sugars under control, that can lead, in the worst case scenario, to the inability to heal from cuts and lesions in those places, leading to amputations.
There are a LOT MORE amputations going down right now than you realize, and when they happen, the health system sees much higher costs than you’d think in terms of treatments, drugs, replacement limbs, therapy, lost time at work, and more.
Any treatment that can reduce those amputations – and perhaps even regrow tissue, blood vessels, and/or nerves, even if its expensive, is going to be a long term cost saving.
And, let’s not forget, a profit earner.
- Large Market Opportunity:
- The global CLTI market alone was valued at $4 billion in 2022 and is expected to grow significantly. Hemostemix plans to target high-net-worth individuals (HNWIs) initially, scaling to broader markets with automated production.
- Scalable Production Technology:
- Hemostemix’s Automated Cell Therapy System (ACTS) can produce up to 240 treatments per month per pod, enabling regional and global scalability.
- Strategic Financial Incentives:
- Operating in Puerto Rico under Act 60, the company benefits from:
- 50% cash-back on R&D expenses.
- 15-year 1% tax rate on profits.
- 20% tax credit on offshore costs.
- Operating in Puerto Rico under Act 60, the company benefits from:
How much do you think a limb is worth to a high net worth individual?
$50k? $500k?
At the pointy end, your premium audience can pay amounts that would take this therapy to an instant high margin profit, with the opportunities of mass market (low margin) engagement coming as the product scales up.
But is Hemostemix well positioned to take advantage?
- Strong Intellectual Property Portfolio:
- Hemostemix has 91 patents protecting its technology and processes globally, giving it a robust competitive edge.
- Experienced Team:
- The management team and advisors bring over 20 years of production and clinical experience. Notable figures include cardiologists and vascular specialists from leading institutions.
- Early Revenue and Profitability Goals:
- Hemostemix plans to be cash-flow positive by late 2025, selling 30-40 treatments per month initially. Profit margins are expected to reach 80%.
- Partnerships and Sales Path:
- Hemostemix is collaborating with 200 stem cell clinics and pursuing regional joint ventures for production and distribution.
TO BE CLEAR:
I haven’t read the science enough, and don’t come from a position of knowledge and experience enough, to know if this science is legit. But I do know I REALLY want it to be, because I’m the target market. And there are a lot of people like me out there.
Hemostemix isn’t a client of mine. They’re not paying me so I should just shut the fuck up and profit from this, but I want this to be successful so I can use it.
My thinking here is, I’m taking a starting position, watching the market action, and digging that they just today became OTCQB eligible, which means American investors will be coming in.
If I’m going to want to be a client, I’m going to let the stock action pay for it.
And right now it is.
Watchlist.
— CHRIS PARRY
FULL DISCLOSURE: Not a client, but I have taken a stock position.