Cytori Therapeutics - The Story is Getting Out

In my September 9th entry on Cytori Therapeutics, I focused on a company with an exciting platform for delivering multiple stem cell therapies and a compelling, easy to understand, story.

Now, even as the stock of Cytori Therapeutics has drifted lower over the last couple of weeks, the story certainly seems to be spreading. Ironically, the media interest is not necessarily related to the potential as a therapy to repair damaged hearts, cure incontinence or treat periodontal disease but as a natural alternative to breast implants.

While the Cytori's stem cell extracting Celution machine has been approved for use in Europe and Asia for therapeutic purposes, it is approved only for research purposes by the FDA in the U.S. However, that little detail hasn't stopped a handful of surgeons, who see this as the next great big thing in cosmetic surgery, to commence the use of the Celution in cosmetic therapies, without a requirement for FDA approval.

The idea of taking fat from one part of the body and replanting it into one's breasts, with a stem cell nourishment that enhances its stability, is not only an irresistible concept to women across the world but its a great lead in story to media outlets across the nation. In recent conference calls, Cytori disclosed that it earns $2,500 per procedure on the disposables used in each procedure. The Celution machine itself sells for about $100,000. So, while this is truly a great story that alone can be feed a stock price, the economics for Cytori seem to be in place as adipose stem cell therapies catch on.

Here are a couple of examples of the story starting to spread in the U.S. by a single doctor in Arizona:

How long will it be before we see the same stories in the bigger media markets of New York and California and, of course, national news networks. Women across the nation are sure to be clamoring for this procedure (if of course they can afford it).

Just to put things in perspective, let's not forget there are several more medically critical potential therapies of Cytori's platform other than natural breast enhancement. This is just the beginning of the story, in my opinion and as I stated in a previous entry, I do own Cytori stock and I recently picked up some warrants (CYTXW) so I am not unbiased. I impatiently wait along side other Cytori shareholders for irrational exuberance to turn a legitimately promising story into something even bigger. Do your own DD and decide for yourself.