Battle Royale In US$10 Billion Hemophilia Market

2017.08.19

Anybody that actually reads this article re 5 co’s battling it out in the hemophilia space, after reading the two links below, might come to the conclusion they need to own Sernova Corp. (TSX-V: SVA, OTCQB: SEOVF, FSE: PSH).

http://www.sernova.com/press/?ID=211

https://aheadoftheherd.com/Newsletter/2017/HemAcure-and-Sernova-A-Big-Deal.htm

Sernova’s products are uniquely focused on those diseases in which a protein, hormone or factor, missing or in short supply in the body, could be replaced by therapeutic cells which release those factors into the bloodstream.

For Sernova Corp’s (TSX-V: SVA, OTCQB: SEOVF, FSE: PSH), hemophilia product here is my ‘pedal to the metal’ analogy. 

For hemophilia A patients, today’s prophylactic therapeutic products are like a car with a tiny gas tank – a tank that must be filled up every 20 miles or so. That’s because all hemophilia products must be infused three times a week to keep their blood levels of Factor VIII high enough to prevent bleeds. 

Fortunately, for hemophilia sufferers Sernova’s product, their Cell Pouch System™, with the therapeutic cells anticipated to produce Factor VIII on a constant basis, is expected to allow the car in essence to “drive across the country without stopping because the vehicle is producing its own gas.”

To explain further, Sernova’s hemophilia product is designed to produce elevated levels of Factor VIII in the blood – no need for infusions. This is the holy grail for hemophilia companies, including the 5 mentioned in the above linked article.

While other scientific laboratories around the world were advancing stem derived cell technologies which, if successful, would provide sources of therapeutic cells for various clinical applications, Sernova was in parallel working on their proprietary, scalable, implantable medical device (Cell Pouch System™) that creates a natural environment for the survival and function of these therapeutic cells.

Diabetes and hemophilia are but two of the multibillion dollar market opportunities where such treatments could lead to:

• A significant improvement in the quality of patient’s lives
• Reducing health care costs
• Potentially reduce the devastating side effects of disease

Sernova is in the forefront of such technologies. 

Of course in order for Sernova to make a profit from their product, there has to be consumables or royalties. I.e. how often will cells in the Cell Pouch System™ have to be replenished?  How often will the Cell Pouch System™ itself have to be replaced? 

The answer would be, if the current cost for infusions of Factor VIII is $200,000 per year per patient and SVA’s product lasts one year then the cost of SVA’s product for each patient is expected to be $200,000 per year. If the patient has less morbidity and fewer surgeries and fewer doctor visits, saving the health care system considerable money, then their product could potentially command more while at the same time reducing overall health care system costs for the disease.

There is absolutely no doubt in your author’s mind this is highly disruptive technology for hemophilia and the large players involved.

 Look, the most critical thing is that SVA’s Cell Pouch System™ has been proven safe and compatible for use in human beings. I say it’s the most critical thing because I believe Sernova’s Cell Pouch System™ will the main platform for delivery for all future stem cell therapies.

Because Sernova’s Cell Pouch™ uniquely forms highly vascularized tissue chambers for the placement, survival and function of therapeutic cells I believe all companies developing therapeutic cells – for any biological treatment that will require a constant level of supply i.e. hormone, factor 8, insulin, neurological and metabolic conditions – will need SVA’s Cell Pouch System™ to deliver their therapeutic cells.

SVA’s technology could be used for a patient’s own cells (autograft), or a donor’s cells (allograft). The therapeutic cells placed into the device may also be cells that can be a source to treat millions of patients such as stem cell derived therapeutic cells (stem cells have the ability to differentiate into other cell/tissue types) or xenogeneic (derived or obtained from an organism of a different species) cells.

Sernova’s products are also designed to allow for multiple market expansion opportunities within each therapeutic area. For example, the technology would be beneficial if it provided a simple reduction in the number of daily therapeutic injections a patient must take; however, there is the possibility that it could even essentially ‘cure’ the disease through natural release and regulation of the therapeutic proteins or hormones.

Conclusion

Since late December 2015, Sernova and its collaborative partners have announced funding of joint research hemophilia and diabetes collaborations totaling Cdn$11,780,000.00.

Almost twelve million dollars of funding from the European Union’s (EU) Horizon 2020 Program for hemophilia and the Juvenile Diabetes Research Foundation (JDRF) for diabetes research and clinical trials is massive validation of Sernova’s technology.

Sernova Corp. is a company on the cusp of being THE paradigm changer in science. Sernova’s capability to  profoundly disrupt current standard of care across several regenerative medicine sectors is unlimited.

For this reason Sernova Corp has to be on everyone’s radar screen. Is SVA on yours?

If not, it should be.

Richard (Rick) Mills

aheadoftheherd.com

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Legal Notice / Disclaimer

This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.

Richard owns shares of (TSX-V: SVA, OTCQB: SEOVF, FSE: PSH), SVA is an advertiser on his site.