Does Sernova have a treatment for Sort 1 Diabetes?

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There are many amazing companies around the world trying to solve the world’s problems and make this a better place to live. When the right group of people find the right environment, huge results can be achieved. Today we’re going to look at one of these situations – Sernova Corp. (TSXV: SVA | OTCQB: SEOVF). Sernova is a regenerative medicine platform company developing technologies that use a medical device and immune-protected therapeutic cells (i.e., human donor cells, corrected human cells, and stem cell-derived cells) to improve the treatment and quality of life of people with chronic metabolic diseases such as insulin-dependent diabetes , Blood disorders, and other diseases that are treated by replacing proteins or hormones that are missing or scarce in the body.

That’s quite a mouthful, so let’s try breaking that down a bit. Sernova is a clinical stage company developing products to treat chronic debilitating diseases. They are working on commercially viable treatments for things like diabetes, hemophilia, and neurological disorders, with therapeutic cells inserted into the proprietary Cell Pouch System, an implanted and scalable medical device.

Sernova’s focuses on the treatment of chronic diseases with regenerative medicine. Regenerative medicine can be described as the branch of medicine that develops methods of regrowth, repair, or replacement of damaged or diseased cells, organs, or tissues. It offers the potential for a functional cure to masking the underlying disease and long-term management of symptoms with prescription drugs.

To this end, Sernova’s market has won over the cell bag system, especially its success in treating diabetes. In fact, it is a novel implantable and scalable medical device that creates a natural environment in the body for the housing and long-term survival and function of therapeutic cells. These therapeutic cells release the necessary proteins or factors that are lacking in the body to treat chronic diseases as an alternative to the daily administration of drugs. On January 15, 2021, the company announced positive preliminary safety and efficacy data from the ongoing Phase I / II clinical cell bag study for type 1 diabetes in the United States. In fact, a patient has been insulin-free (no injectable insulin) for nine months and has optimal glucose control.

That news raised the stock from $ 0.75 to over $ 2.00. The reason for the excitement about this news is that Sernova’s proposed solution to type 1 diabetes represents a potential $ 30 billion commercial opportunity for the company. However, there are many more applications for the Cell Pouch System that Sernova is working on at the same time. You have completed a pre-clinical proof of concept in hemophilia with an estimated market size of $ 10 billion and have a clinical program under development for a thyroid program with an estimated market opportunity of $ 2.2 billion.

That’s pretty impressive, but it’s by no means an overnight success story. The company began trading under the name Sernova in 2006 with the first positive results of a long-term study evaluating the cell bag system in a preclinical diabetes model in July 2010. This has been in the works for years, but is finally getting closer to a deliverable and hopefully very much profitable product.

If you or someone you know had any of these diseases, which therapeutic would you sign up for? An existing regimen of regularly administered medication or an implant that addresses the problem at the source and requires little to no maintenance. I’m pretty sure I know what I would sign up for if I assumed nothing daunting to come out of clinical trials.

Even so, no income is currently being generated despite receiving grants to support their diabetes research. The current burn rate is a modest $ 1.0 to $ 1.5 million per quarter, and they have more than $ 30 million after a $ 23 million financing that closed on March 1, 2021 . Therefore, funding shouldn’t be an issue for the foreseeable future. The company has approximately 257 million shares outstanding with an additional 50 million warrants, bringing its current market capitalization to just over $ 400 million. This stock is on your radar right now, but it has plenty of potential given the markets it is looking to enter.