SB: The irony of all ironies is that the government is actually stepping in. The government understands that to continue this pill-a-day model is the equivalent of going back to Jurassic times. You can't do it. We have to think into the future.
That brings me to the next company. Cytori Therapeutics Inc. (CYTX:NASDAQ) has a government contract through the Biomedical Advanced Research and Development Authority (BARDA). The government has said it is interested in funding projects that can be categorized as dual use. In this case, BARDA has funded Cytori's treatment protocol for radiation burns, as well as the future purchase of product from Cytori. The company has the ability to use the same technology for conventional burns and wounds.
In this situation, the government is spending money to develop a product that will be commercially viable, and not something that the agency will be stuck with until there's a nuclear accident—or something worse, like a nuclear attack. Because it is a platform technology, it's not just limited to one part of the body. It uses a patient's own stem cells to restore blood flow to an area that's been damaged or that's in need of assistance.
TLSR: Cytori's Celution System is the most modular patient-, physician-, and lab tech-friendly technology that I have seen in the stem cell industry. The Celution device can process and develop the patient's own cells from adipose tissue (body fat) into a dose of stem cells in one hour.
SB: That's correct. We talked earlier about irony in the stem cell industry. Here's another irony. Government contracts usually stipulate that if you can repeat in humans what you've done in animals, it will give you the contract. But this one says, if you can repeat in animals what you've done in humans, you've got a government contract.
TLSR: Are you trying to tell me that you think Cytori is going to be the first winner in the regenerative medicine field?
SB: I'm going to say that it is the first to have a commercial model that the government is betting on. That's because the company has already proved it. That's a difference.