Thanks to the advent of equity crowdfunding, there’s never been a better time for retail investors seeking new opportunities. Innovative companies that may not have traditional venture capital backing can now market their solutions to a wider demographic. And that’s the case with Cytonics. But it’s the promising nature of the treatment platform that has many excited about Cytonics stock.
Cytonics is a biotechnology firm specializing in regenerative medicine for osteoarthritis patients. According to Cytonics’ SeedInvest.com investor profile, over 27 million people in the U.S. suffer from arthritis-related pain, imposing a $180 billion burden on our health care system and economy.
However, this number is understated, according to the Centers for Disease Control and Prevention, which states that 32.5 million American adults suffer from osteoarthritis. Right there, the case for Cytonics stock theoretically improves by 20%.
Setting that aside, the osteoarthritis profile in this country makes this biotech firm a compelling equity crowdfunding opportunity. For instance, one of the risk factors for this condition is old age. As you know, the U.S. experienced a baby boom following the end of World War II to sometime in the early 1960s. But that increase in baby-making now means we have a massive population of older people.
Logically, this dynamic increases the probabilities of osteoarthritis, presenting a growing case for Cytonics stock. In addition, obesity is a risk factor because according to the CDC, “Extra weight puts more stress on joints, particularly weight-bearing joints like the hips and knees.”
You only need to go outside to see our national expanding waistline.
The Science Behind Cytonics Stock
Although we can talk all day about the plentiful and still-expanding market size for osteoarthritis solutions, it won’t mean a darn thing if the underlying science backing Cytonics stock was lacking. Fortunately, this biotech firm is all about the science.
What separates Cytonics from other therapies is the discovery of alpha-2-macroglobulin (A2M), which may hold the key for many osteoarthritis sufferers because multiple tests confirm this blood serum protein protects cartilage. Further, the presence of A2M may halt the progression of osteoarthritis.
Therefore, the catalyst behind Cytonics stock came from an idea: what if bioengineers can inject A2M at the source of trouble, providing both pain relief and preventative therapy? And that’s exactly the concept here. Under a three-step process, Cytonics take blood from patients, run it through a centrifuge to increase the level of platelets, and then reinject the A2M-rich solution to the source of pain.
In this manner, patients can enjoy relief essentially through their own blood. However, the present technology of platelet-rich plasma injections may not produce enough A2M to restore damaged joints. This is where the second catalyst of Cytonics stock comes into play.
The biotech firm is presently developing a synthetic version of A2M called CYT-108. Based on its hypothesis, Cytonics believes that its synthetic version is more effective, perhaps between two to three times more effective than naturally occurring A2M.
Now, this is the key factor that has many excited about the potential of Cytonics stock. If the Food and Drug Administration approves CYT-108, this may be the only therapy that addresses osteoarthritis’ root cause, perhaps leading to a cure.
What lends credibility for the biotech firm is that its natural A2M therapy has treated over 7,000 people in the U.S., leading to encouraging results.
Risk Factors to Consider
While the science of osteoarthritis treatments makes this equity crowdfunding opportunity distinct, it’s not without risks you must consider. As with all private investing ventures, you’ve got to do your due diligence. Remember, most startups fail – this is just a harsh fact.
But experimental biotech firms are probably among the wildest investments. Yes, if a company passes advanced-stage clinical trials, the target security could fly to the moon. But such successes are rare, as evidenced by the wasteland of failed biotechs. In addition, you should keep in mind that for decades, the FDA has approved relatively few drugs/treatments.
To be fair, the platelet-rich plasma therapy which Cytonics’ technology is based off has few major demerits. That’s according to a 2018 study exploring the pros and cons of regenerative medicine and published by the National Institutes of Health. Still, “under certain circumstances, PRP applications can result in injection-site morbidity, infection or injury to nerves or blood vessels. Scar tissue formation and calcification at the injection site have also been reported.”
Also, the report notes that “patients with compromised immune system or with predisposed diseases are more susceptible to infection at the injured area.”
Are these “acceptable” risks for Cytonics stock? Possibly. Nevertheless, according to a study on platelet-rich plasma therapy for knee disorders, many methods have been utilized to treat osteoarthritis but with limited success. Plus, this report states that variables such as centrifugation prep work can negative the effectiveness of plasma-based regenerative therapies.
I’m not trying to dissuade you from Cytonics stock. Rather, I’m pointing out that there’s a reason why successful therapies haven’t been found yet: this is a tough condition to address.
An Opportunity for the Speculator
Personally, I’m a gun shy regarding most biotech plays. There are so many variables involved, each one levering a possible negative impact. And I don’t think Cytonics stock is any different in that sense.
However, the underlying science is very compelling. Thus, if you can handle the heat, plenty of justification exists for taking a shot. To learn more about this equity crowdfunding opportunity, please visit Cytonics’ SeedInvest profile.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks