Multicell has already experienced a nice run earlier this year, and it might be worth taking a look at the company again, whether it be for a potential short term trade or long term hold - or both, since it's always a good strategy to trade into the penny play spikes.
Shares doubled to open the trading week on Monday in response to a press release that announced the awarding of a patent by the US Patent and Trademark Office (USPTO) relating to the isolation and use of human liver stem cells to treat liver disease.
Using stem cells for the treatment of liver disease has long been the driver for a speculative buy into this company, and the awarding of this patent will - at least temporarily - attract some much-needed attention to the company.
While stem cells for the treatment of liver disease could potentially be the most lucrative market later on down the road, there are two product candidates in the Multicell pipeline that are further along in development.
MCT-125 is a treatment for fatigue in MS patients (a Phase II product) and the Ideal BioStent, recently purchased by Multicell's majority-owned subsidiary Xenogenics, could turn out to be the first product on the market for this small company.
Any positive pipeline news could lead to some significant spikes, as evidenced by Tuesday's drastic price increases, so MCET is always one to keep on the radar.
That radar was going haywire on Monday morning.
2010 was a rather dull year for MCET, but 2011 has already shaped up to be a solid one, if not stellar.
Disclosure: Long MCET.
