“Bio Seeds — California Biotech Cleared to Bypass FDA – Next Month – for 22,627% Gains”

By Travis Johnson, Stock Gumshoe, June 17, 2010

Today we’ve got an interesting tease that a few readers sent in — it’s from the White Cap Report folks, who generally look for potentially high-octane growth stocks, and it’s about some kind of biotech stock.

Here’s how they get our blood flowing this fine morning:

“California Biotech Cleared to Bypass FDA – Next Month – for 22,627% Gains

“Company’s new ‘Bio Seeds’ could cure eight diseases, including cancer and diabetes…

“Breakthrough set to storm 64 world markets, sparking cash windfall worth $498.2 billion…

“Six weeks from today, one tiny biotech company could make medical history.

“It could also make some smart investors very rich.

“No, the company hasn’t found another “miracle cure” for cancer.

“Nor has it created a “magic pill” for treating diabetes…

“This isn’t a new cure for heart disease… Alzheimer’s… arthritis… kidney failure… Parkinson’s… or macular degeneration…

“It’s a single remedy that promises permanent cures for all eight of these devastating conditions.

“The Centers for Disease Control calls this breakthrough ‘the next evolution in medical treatments.’”

So … time is a little short today, which means I’ll spare you much of the sales letter and just jump to the idea: what they’re talking about with the invented term “bio seeds” are human stem cells.

And the stock they’re talking about is one that is primed to “bypass the FDA” when it rolls out new products — but they’re doing so not through some trick. They’re not trying to roll out a drug to pharmacies, they’re selling to researchers and academics, which doesn’t require the same kind of approval … or, of course, bring in the same kind of sales.

Here’s a bit of the specific tease about this company they’re touting:

“We recently flew 3,000 miles to meet the man behind this incredible breakthrough.

“Unless you work in the medical-research field, you don’t likely know his name. So we’ll just call him ‘Doctor X.’

“He founded and currently heads the company behind ‘Bio Seeds.’

“And what he revealed during our private meeting at the San Francisco Hilton could soon make investors very, very rich…

“How One Company Will Spark the Coming Boom

“Within the next six weeks, ‘Bio Seeds’ are set to storm dozens of medical markets around the world.

“Doctors will be able to use these ‘Bio Seeds’ to create cures for heart disease… diabetes… cancer… Alzheimer’s… Parkinson’s… arthritis… kidney failure and macular degeneration.

“As the doctor says:

“The great scientific interest lies in the potential of [‘Bio Seeds’] to transform into any cell type of the human body. These cells therefore show considerable potential as a source of new therapies for a host of currently-incurable diseases such as: diabetes, Alzheimer’s and Parkinson’s disease, heart failure, arthritis, as well as many other disorders that may be treated by replacing diseased or damaged organ tissues.”

“Just a few examples of these breakthrough ‘Bio Seeds’…

“The company’s XJJ-30 ‘Bio Seeds’ sprout into fresh heart cells…

“Its new 40W ‘Bio Seeds’ grow into fresh kidney cells…

“And the 4JF cells are designed to cure Parkinson’s…

“‘These cells have the potential to make everything in the human body… even on a commercial scale,’says Doctor X.”

OK, so that’s probably enough to narrow down which stock this is — there aren’t, after all, terribly many promising stem cell companies in the world. Let’s see how they describe this “bypassing the FDA” bit:

“Bypassing the FDA – Legally – Next Month

“Instead of introducing “Bio Seeds” to the patient market first, the company will employ a unique ‘launch strategy.’

“‘Bio Seeds’ will initially be available only to the global research market, which isn’t regulated by the FDA at all!

“As Doctor X says:

“We are implementing a near-term revenue strategy by seeking to develop and market [Bio Seeds] that can be used by researchers at universities and biopharmaceutical companies.

“‘These research-only products generally can be marketed without regulatory (FDA) approval, and are therefore relatively near-term business opportunities when compared to human therapeutic products.’
And that’s how the company will bypass the FDA as soon as next month, making some investors very rich.

“But why haven’t you heard about the coming event from CNBC, Jim Cramer, or The Wall Street Journal?

“Because the company has signed a secret distribution deal with the most powerful pharmaceutical company on Earth…

“Simple. They don’t realize that the company has signed a secret deal with the most powerful drug distributor on Earth.

“This company has more than 30,000 employees and distribution channels in 64 countries.

“According to our intelligence, the deal will finalize within the next six weeks.

“When it does, ‘Bio Seeds’ will storm past FDA approval and into dozens of markets worldwide, including the United States, Canada, Great Britain, China, India and Brazil.”

So which stock are they teasing us about today? It’s actually one that might sound familiar to some of my readers: BioTime (BTIM)

And I expect that the “Doctor X” they went to meet with is the man behind BioTime — and also the founder of Geron and former head of Advanced Cell Technology, and a legitimate leader in the stem cell science business, is Michael West.

BioTime is, it seems to me, a “picks and shovels” play in stem cells — they’re unlikely to develop a lifesaving treatment, but they may well have purified and produced the stem cell line or product that led to that treatment. I’ve written about the stock a number of times over the last couple years thanks to a number of Patrick Cox teasers about the world-changing nature of regenerative medicine, so if you were lucky enough to get on board way back in November of 2008 when Cox’s ads really started pushing this one (my article from back then is here if you’re curious) you’d be quite happy — the shares were around $1.50 then, and are right around $7 now. If you look at a BTIM chart over the last few years you’ll see several big spikes, many of which are from the attention brought by fairly large teaser campaigns from Patrick Cox for his Breakthrough Technology Alert (and, to be fair, from the attention that the stock subsequently got in these pages).

The stock is still small enough that most of the time, this new attention brings a surge in the stock price and then a fall back a few days or weeks later … but over time, the trend up has continued quite strongly ever since Michael West took over at BioTime and pushed them more aggressively into the stem cell business (that was 2007, though he was on the board previously).

If you’re interested in BioTime and aren’t one of my readers who’s been interested in this one for a while, Michael West gave a fairly long presentation at the recent annual meeting that gives a very good background on what they’ve done and what their plans are for their stem cell “platform” in the future. That presentation is available on video here.

I’ve been tempted by BioTime a few times, and may well speculate on these shares at some point in the future myself — they’ve grown over the years and are now AMEX-listed and part of the Russell 3000, so they may well break out as a leading company, and I do like that they’re not focused on a specific treatment or product … they may well have breakthrough products that owe them royalties at some point in the decades to come, but it seems unlikely that they’ll be funding expensive FDA trials for human testing of various treatments with the binary stock response such trials often bring to small stocks (ie, they either soar or crash).

So … I’m not smart enough to tell you whether or not BioTime is as good as they sound, or whether there will be huge scandals or problems that derail regenerative medicine and stem cell therapies, and whether or not they get a deal with a big pharmaceutical distributor it seems unlikely that they’ll flip a switch and become profitable any time soon (they trade at about 100X sales right now and lose about $3 for every $1 in sales, and have been acquiring small stem cell companies and their strategic facilities around the world) … but when I listen to Dr. West talk, I want to drink the Kool-Ade, too.

Whether the shares are worth $2 or $7 or $20 right now is certainly in the mind of the beholder, this is one of those “buying the future” stocks — I’d be a lot more comfortable with BioTime than with most biotechs that are developing one or two potential drugs, but it’s still certainly a tiny and speculative stock … and I can at least give credit to Patrick Cox for coming up with this one 18 months and a few hundred percent before the White Cap Folks (though their publishers are related). I’m sure there are many folks out there in Gumshoeland who are much more informed about stem cells than I am, feel free to share your thoughts on BioTime or the many other stocks in this group with a comment below.

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34 Comments on "“Bio Seeds — California Biotech Cleared to Bypass FDA – Next Month – for 22,627% Gains”"

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shredder
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shredder
June 17, 2010 2:57 pm

ISCO is another stem cell Co that patrick has picked to have transformational profits

Matt
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Matt
June 17, 2010 3:10 pm

I have purchased it several times and road the hype and sold it after it made a $1 a share. Left some on the table but thats fine. I agree at this point it is a speculative stock and does seem to spike with Patrick or White cap pump it. I wish I would have purchased it at 1.50 .

Guest
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Guest
June 17, 2010 3:35 pm

If the teaser were true, we would be living longer? But what about living better? Would we be happier living longer? Living longer just so we would have longer-living couch potatoes, waste more time playing video games? Have more time to kill? What about doing the most with the time we have NOW?

dlst
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dlst
June 17, 2010 4:24 pm

And hey, what about Social Security?? If we all start living an extra 10 years, pension funds everywhere will go broke. It'll be an actuarial disaster. Have to raise retirement age to 80, and there aren't enough jobs as it is.

Peter Rabbit
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Peter Rabbit
June 17, 2010 6:10 pm

The Biotime story reminds me of Synthetec NZYM maker of peptides as a supplier to pharma. Hyped by the Red Chip Review years ago. Still kicking but barely and I lost a bundle in that lesson. I would have trouble going down this road again.

Herach
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Herach
June 18, 2010 12:17 pm
I believ bio-tech will be one of the outstanding investment opportunities in the near future. Like junior mining companies, speculation is rampant. If you have a portion of funds to buy a bundle of these potential blockbusters and a time frame to warrent holding them for the FDA testing periods, consider taking a bite. Personally, at 87, my time is too limited to wait..If you hit one winner, it will more than compensate for the losers. Unfortunatly, the prices are generally too low to take a shot, then try to recoup parts of your investment. Long term commitment is required… Read more »
Zeb
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Zeb
June 19, 2010 7:19 am
BioTime is already trading at a premium when compared to ISCO which is the same sort of pick and shovel stem cell operation which isn't trying for that one moonshot goal that most stem cell companies are trying for. ISCO is aligning all its options up one behind the other and when finally they get them all in a row look out world ! I wish I bought the shares at 0.85cents in December, but alas, had to pay alot more !. Make no error about it, these stem cell companies will change how we all live healthwise and that… Read more »
Guest
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Guest
June 19, 2010 1:29 pm
Don't want to be the proverbial wet blanket, but do have at peek at BBC news Thursday 17th June 2010 highlighting an article in the "Journal of the American Society of Nephrology" whereby a patient treated with stem cells injection into the kidney suffered tissue damage but died of an infection… Quote.."the patient had not benefited at all from the treatment, but had actually developed tissue damage called angiomyeloproliferative lesions at the injection sites. These were found to be clusters of blood vessels and bone marrow cells." "This type of lesion has never been described before in patients, and we… Read more »
britthai
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britthai
June 20, 2010 2:11 pm

got burned with intercytex…..apparantly a world leader patronised by pfizer…went bust

digndig
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digndig
June 24, 2010 10:19 pm

There is great promise but the field is over promising and the technology is frought with patent infringements at this point. Without a protected position, anyone can replicate the products.

maram gnaneshwar
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maram gnaneshwar
August 26, 2010 2:03 am

i am very glad to know about bioseed that will cure major dieses. a major achevement made by mr.doctor x.

aswini
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aswini
August 26, 2010 12:08 pm

how to purchase shares

MPC
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MPC
September 15, 2010 6:19 pm
Biotime is far overvalued currently, even at the current depressed pps. I certainly could be wrong, but why on earth would universities buy lines of stem cells from Boiotime? It doesn't make sense. Universities propogate their own lines of stem cells, and it's fairly easy to do. The Pat Cox "pump" from last August/September said the same thing about "life changing wealth". The pump actually ended up being that Biotime contracted with a Korean conglomerate that has the potential to boost revenue for BTIM because ther's less regulatory hurdles there, and also less social opposition there. I bought Biotime when… Read more »
Garry
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Garry
October 19, 2010 11:52 pm

Anyone know name of California biotech about to announce to world news on stem cell breakthrough? Its not Bio Time is it?

David
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David
November 7, 2010 2:40 am

I was really thinking about buying stocks of it but I really think these guys might be fake now, Check out this link I found of Dr. West talking about it: http://nextbigfuture.com/2010/04/biotime-reverses… and check out the comment at the end. Why is he saying they're bogus? Anyway I get the feeling what they say BioTime does is all fake just by watching Dr. Wests presentations. Is this guy the owner of BioTime and trying to be the next Madoff or what?

Bigg Fredd
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Bigg Fredd
November 7, 2010 11:01 am

Any time someone claims they can turn a $5000 investment into more than $1 million with one transaction, I suspect bullship.

Bigg Fredd
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Bigg Fredd
November 7, 2010 5:24 pm

Yahoo uses BTX for the ticker.

Why is it these wizards always seem to be great at picking stocks at their peak? BTX may still be a good buy, but the time to be recommending it was when it was when it was 20¢, not $6.

Victor
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Victor
November 22, 2010 2:56 pm

Good comments. Thanks I've had Geron and PSTI for a while, and they are both up a little. I was looking at Biotime with all the new hype, but I think I'll wait another 30 days!

Brian
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Brian
January 11, 2011 1:00 pm

Lot of hype & bull. There will be a lot of money lost by investors before the smoke clears. About the same chances of coming out a winner as playing the lottery. I think someone said the odds on the lottery were about 28 million to 1.

marie
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marie
March 7, 2011 7:05 pm

I just read that Harvard Bioscience Tech. is doing the same thing. Is this related to that? I trust Harvard Bioscience research team, and I will buy if it is same.

sal
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sal
March 8, 2011 6:47 pm

i see y promise dats goes to Monday, 05 July 2010 gain 22,627% Gains in 6 weeks and still u ar promising the same story over and over

Matt
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Matt
March 14, 2011 1:51 pm

Does anyone have any information on LVCLY, Living Cell Technologies ? This co. was a recent recommendation from my Asian Stock newsletter. They made it sound like a phenominal opportunity. Any comments ?

Bosko
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January 20, 2012 1:01 am

The simplest things in life are for free. And then you wake up. Brush your teeth. Have shower. Jump in your car and go to work. That all cost money. So it pays to keep an eye out for some of these Stocks. I like all of the above blogs. Good luck Investers.

Zeb
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Zeb
June 20, 2010 4:42 am
I take it the stem cells were administered at a private clinic in Thailand. The clinic was doing experimentation on the patient by injecting stem cells directly into the kidney. This is a world away from creating artificial corneas under strict controls in a laboratory environment. These corneas will be used instead of live animals for testing. The corneas will also be used for transplants in India. The dental world has a stem cell solution commercially ready where teeth are grown on a frame with stem cells ! I could go on. This science is not purely about trial injections… Read more »
MPC
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MPC
September 15, 2010 5:57 pm

Injecting pure undifferentiated living stem cells into patients is a BIG mistake. That is a sure fire way to cause teratoma's and uncontrolled growth. Stem cells need to be differentiated into cell lines/lineages of specialized cells. Those specialized cell lines then need to be purified of any remaining stem cells. Those lineages of differentiated specialized cells are the true miracle of stem cell therapy.

Zeb
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Zeb
June 25, 2010 1:48 am
I havn't found ISCO over promise on anything yet. I wish they were more promotional and they might find a shareprice closer to Bio Time ! I have followed both BioTime and International Stem Cell Corp (ISCO)and ISCO would have to be extremely conservative PR wise. Their shareprice should be at least half that of BioTime I think after alot of research. Both these companies have patented stem cell platforms that others may use under license agreements to produce their own products. I do own shares in ISCO so I am biased ! Don't Invest On My Words ! But… Read more »
Zeb
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Zeb
July 1, 2010 8:53 am

HECK, YOU CAN PURCHASE THE SHARES FOR $1.03 TODAY !

DrBARKAT
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DrBARKAT
August 4, 2010 4:06 am

LIVE HAPPIER DEPENDS UPON US , IF WE WANT WE CAN DO IT.

MPC
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MPC
September 15, 2010 6:33 pm
Oh yeah….. one more thing…. Biotime purchased a license from ACTC to use the ACTcellerate platform. ACTC owns this platform. (ISCO also purchased rights to use this platform from ACTC). This platform is where Biotime is producing their cell lines. It's a great platform. But the caveat here is that part of the license agreement with ACTC is that ACTC can buy back the rights to it's license, any time they choose, for 5000.00 dollars. Yes, that's right….. I said 5 thousand. That's pocket change to a company. If you are so certain that ACTC won't buy back their license… Read more »
Marco
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Marco
November 30, 2010 3:12 pm

NBS – Neostem – also a player in the stem cell business and quite active in the US and China with stem cell banking & collection. I believe that they are going to announce 'world news' before the end of the year.

jo behr
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jo behr
February 2, 2011 3:03 pm

Have you not learned the best things in life are free? A sunset in Oahu, sking downhill at Crystal, walking the beach at Acopulco, Mx. Come on get into it. Simple things like drinking a cold glass of water, walking along a river or stream, swimming at the Y. What do these cost? Your health both mind and body is your most treasured commodity for enjoying the simple life. Dont you all agree?

Bio Seed Research
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Bio Seed Research
February 20, 2011 10:14 pm

They hype and bull is because the teaser says that the FDA will approve the breakthrough in six weeks. This has been on the market for 8 months. Besides they were on CNBC already. The symbol isn't over the counter as BTIM.ob anymore either. Trading as BTX now.

John
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John
March 14, 2011 10:21 pm

Exactly my sentiment. If these guys know so much why not invest their own money, get rich and retire to a tropical isle?

Ash
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Ash
March 22, 2011 6:23 pm

I received this from WhiteCaps today – they are still using the same material for over 1 year now??? It sounds like an unethical organisation – feels like I am a memeber of a dodgy organisation

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