What can I do with my unwanted body fat? That is a question that is posed by American CryoStem (OTCQB:CRYO - News) on the home page of its website. There are plenty of finite resources in the world, but lets face it, body fat certainly isnt one of them. A little due diligence reveals the companys answer to that question, but a more discerning examination uncovers the true growth potential of American CryoStem from an immediate, mid-term and long-term perspective.

American CyroStem is pioneering uses for adipose (fat) tissue-based cellular technologies in the field of regenerative and personalized medicine, two industries that are likely to assume dominant roles in the future of health care. It should be recognized that the company is still a small firm with limited resources, but our discussions with chief executive and chairman John Arnone unveil a succinct business model and allocation of those resources to shepherd the company to a far greater vision and valuation.

Short Term Revenue

In the present, the company has started generating revenue through its network of physicians with ATGRAFT, a service for processing and storing adipose tissue for layered fat transfers and reconstructive procedures. Another attractive example of this type of present revenue is with Personal Cell Sciences (PCS), the maker of the upscale UAutologous line of stem cell-based skin care products, which delivers high margins for American CryoStem. The sales channel works through cosmetic surgeons, clinics and other organizations in the extensive PCS/CRYO network offering physicians different options to offer patients to use their adipose derived cells, cells that are loaded with human growth factors, cytokines and matrix proteins. American CryoStem receives the adipose tissue for processing and storage, adding one-time cash to its coffers for the processing services as well as recurring revenue for storage of the stem cells.

International Stem Cell Corporation (OTCBB:ISCO - News) offers a somewhat comparable product, Lifeline Skin Care. The Lifeline product relies on stem cells derived from unfertilized human eggs, and the company touts that their process insures minimal immune rejections and can be used by people of all genders, ages and racial backgrounds. American Cryostems approach goes one step further by using the patients very own stem cells as the basis for its products.

In April, the company penetrated the Asian markets through receipt of its first commercial shipment of adipose tissue for processing, long-term cryo-storage and formulation of the U-Autologous anti aging product, from Biomedical and Life Sciences Institute, a Hong Kong-based regenerative medicine company and distribution relationship of PCS.

While the U.S. markets are formidable as part of the $30.5 billion cosmeceutical industry, the Asian markets represent a substantial opportunity. A cultural shift is happening in major markets around the world. After centuries of repressing individualization, people are showing off their wealth with imported products, such as high-end cosmetics from the United States and Europe, being chic and symbolic of status.

Medium Term Growth

Additionally, American CryoStem is building out its cell culture medium offerings that have the potential to revolutionize the business. The current global medium of choice for culturing stem cells utilizes fetal bovine serum (FBS), and thats exactly as the name implies. FBS comes from bovine fetuses and, while generally accepted, there are ethical and biological arguments against the standard today. There has been talk for years of a dynamic shift to remove any trace of an animal component in the supply chain in specified risk materials in the European Union, not to mention the fact that human albumen based serums may be statistically superior to the fetal bovine serums.

American CryoStem has been awarded a series of patents with more pending on its proprietary formulation for non-animal based serums. With or without global initiatives mandating change, this aspect of the company offers a substantial upside in coming years as the biotechnology industry becomes more aware of benefits of the new medium. Simply, the company is at the forefront of the multi-billion-dollar business.

Read more from the original source:
The Beauty of American CryoStem Now and in the Future