We got more market moving news from a few of our featured stocks this morning. First, RepliCel Life Sciences Inc. (REPCF) (RP.V), a small biotech we initiated coverage on a little over a month and a half ago, is having a tremendous day, and based on what we're seeing on the morning so far, the move looks to be only the beginning of some good things to come for investors who've exercised a little patience in the idea.
Before the market opened, the Company announced statistically and clinically significant positive data from the interim analysis of its phase I study evaluating RCS-01 for the treatment of aging and sun-damaged skin, and the markets are loving the news.
Specifically, the primary objective of their trial was to establish a complete safety profile for intradermal injections of RCS-01 (RepliCel's type 1 collagen-expressing, hair follicle-derived fibroblasts ["NBDS cells"]) at six months post-injection. Participants in the Germany-based study did not report any serious adverse events at the interim point of the trial. Researchers also gathered compelling positive proof-of-concept data indicating the product's potential for skin rejuvenation.
The study was neither powered for, nor was expected to show statistically significant results of efficacy. However, the nearly two-fold increase in gene expression of collagen-related biomarkers in the skin, after a single injection of RCS-01, was so profound with a single RCS-01 injection, that the results are considered statistically significant. The study observed the impact of the injection on ten different biomarkers that, in peer-reviewed medical literature, are highly correlated with skin aging and chronically sun-damaged skin. Notably, gene expression markers, such as tissue inhibitor of metalloproteinases (TIMP), showed significant changes expected to correlate with increased collagen fibers. Increased collagen production, and reduced collagen degradation, is associated with fewer wrinkles and the repair of sun-damaged skin.
"This type of positive effect on TIMP gene expression, which is related to protection against collagen degeneration, is rarely observed. In my experience, after decades of performing these tests, this is an exceptional finding, particularly for a safety trial with a small sample size," stated Prof. Dr. med Jean Krutmann, Scientific Manager of the IUF Leibniz Research Institute for Environmental Medicine where the study was conducted. "The promising results demonstrate the potential of RCS-01 to promote skin rejuvenation. An increase in collagen markers of this nature would be expected to translate into clinically measurable and aesthetically visible effects."
Krutmann concluded: "Replication of these results in a larger trial would confirm our view of the product's potential as a more natural alternative to Botulinum toxins and fillers that only temporarily prevent and reverse the signs of aging."
"This study not only showed an excellent safety profile, but also provides compelling proof-of-concept that RepliCel's RCS-01 cells are, by nature, very good collagen producers in the skin," stated Dr. Rolf Hoffmann, RepliCel's Chief Medical Officer. "We are highly encouraged by the findings and eager to demonstrate the correlation between the change in these biomarkers and clinically important endpoints such as wrinkle depth, in a larger multi-centre trial studying optimal dose and treatment frequency."
"As a practicing dermatologist," Hoffmann continued, "the potential of RCS-01 represents a leap-forward in the way we look at skin anti-aging, especially for the fine wrinkles in UV-damaged skin where we have no long-lasting treatment today. Of importance is the fact that, because RCS-01 is comprised of cells derived from tissue at the back of the patient's scalp, these cells are not only very good collagen producers, but also UV- protected and therefore more functionally active."
"In my opinion," Hoffmann concluded, "this is the first example of a treatment potentially capable of rejuvenating UV-damaged skin."
"This is the most compelling data we have announced to date," stated RepliCel CEO and President, R. Lee Buckler. "Longer term, this data is very complementary to our focus on commercializing a next-generation dermal injector and its targeted application not only with RCS-01, but also with other aesthetic products on the market today. We look forward to discussing these findings and the potential of our products with a number of aesthetic-focused institutional investors and major multinational licensing partners who have already expressed interest in our programs."
The news clearly has the stock on a quick turnaround path, and although the entire biotech approval process clearly takes time, most savvy biotech investors know these stocks always tend to trade out in front of what's to come. So, assuming Replicel continues to produce the type of clinical results we got just this morning, we could be looking at another substantial move higher.
If its daily chart above is any indication of what's to come, a near-term move to anywhere between $.85 and $.90 cents should put the stock in a position to work its way higher. And, a strong break above $.90 could send the stock into a bullish run-up that could find the stock anywhere between $1.11 and $2.55, which represent some key long-term retracement levels. We'll just have to see how the clinical data potentially unfolds between here and there.
SPYR Reveals Cross Platform - Move Further Solidifies Entry Into eSports
If the Replicel news wasn't enough for SmallCap Network Members, SPYR, Inc. (SPYR) also delivered a nice piece of news that once again proves the Company is very serious about positioning itself in one of the fastest growing segments of millennial entertainment over the next several years, eSports.
The eSports industry is grabbing hold of young and old professional game players alike, and turning them not only into world renowned rock stars, but very wealthy ones at that. Many are even predicting eSports are going to put a significant dent in professional sports revenue, something nothing has ever challenged in the history of professional sports.
Maybe now everyone is going to start to understand why SPYR is starting to take shape the way its recent PR has suggested. Shortly before the open, the Company announced that its flagship game, Pocket Starships (www.pocketstarships.com), has been updated to include the first phase of a new player vs. player (PvP) feature, which is the first step in entering the growing competitive electronic sports or "eSports" market.
With the most recent update, Pocket Starships players will experience updated map designs presenting players with different challenges in each play mode, including open-world battles. This completes the first phase toward "arena-style battles" with enhanced map strategies.
With these new map designs, players employ new battle tactics in teams in order to conquer PvP sectors. These revised map layouts will reward pilots who think and fight as a team, and will provide an opportunity for players who can quickly adapt and implement new tactics to conquer the PvP sectors.
This will be the foundation for the soon to be introduced arena-style battles, where players can engage in one on one, three on three or five on five "combat on demand" within the game, simply by pushing a single button.
In the coming months, Pocket Starships will also add "team PvP" play and a tournament system, which will allow Pocket Starships to dive headfirst into eSports.
As one can see, SPYR is quickly working its way within a space that holds tremendous future promise, and when investors look back at what started to take place with the Company in recent months, they shouldn't be surprised the Company was on the verge of some very real potential.
If the stock can continue to find its footing off its recent short-term consolidation, we're still convinced from a technical perspective the stock can find its way to $1.20 per share. The Company is going to have to continue to deliver on the fundamental front, but at this point we've got absolutely no reason to believe they won't.