Back on June 10th, yours truly explained how BioRestorative Therapies, Inc. (OTCBB:BRTX) was set to make a big splash in the spine-repair industry. Then back on June 20th, I pointed out some details regarding the company's budding cosmetic-ingredient business. There was a third element needed to complete the BRTX profile, however, and the company opened the door for me to lay the final piece of the puzzle today.
Despite the fact that many of the biotech industry's top names are working on a drug for type 2 diabetes, a viable treatment - let alone a cure - remains elusive. It's possible the unique approach BioRestorative Therapies is taking could be the game-changer the diabetes market is waiting on.
Ever heard of brown fat? Most people haven't. Brown fat is believed to correlate directly with metabolism rates - the more brown fat that is present, the more that person burns calories. In turn, glucose and lipid levels in the body are reduced. The challenge is, we don't have natural control over the amount of brown fat present or not present in our bodies. That doesn't mean brown fat levels won't be able to be tweaked, however. The question is how, and by how much? That's where BRTX comes in.
BioRestorative Therapies' ThermoStem program is entirely founded on the premise of using human brown fat stem cells as the basis for at least an obesity-control product, and ultimately, a type 2 diabetes treatment.
Although it's only in preclinical testing now, the results so far are promising, and the need is certainly a great one. The drug-based treatment market for type 2 diabetes is around $30 billion per year now, and is expected to reach $50 billion by 2021... and that's without a wildly-effective 'cure'. Imagine the potential of a treatment that actually solved the underlying problem rather than treating the symptoms.
And, BRTX is clearly further down the brown fat development path than any of its peers. That's what today's news release underscores. Per the press announcement, BioRestorative Therapies, Inc. has well over 100 samples of real human brown adipose tissue to work with in the development of a stem-cell based treatment for obesity, or better yet, a treatment for diabetes. In fact, the company thinks it has the largest collection of brown fat tissues in the world. It matters, since the more samples it has to study, the higher the efficacy a treatment may offer.
To be fair, BioRestorative Therapies is still years away from getting an FDA-approved treatment on the market, if that's what's in the cards. But, veteran biotech traders know that premise and promise are often more than enough to get a biotech stock moving. Today's news may well be the catalyst the market needed to support a rally from the stock.
For more on BRTX, visit the SmallCap Network research page here.