BioMatrix Scientific Group, Inc. (OTCMKTS:BMSN) Revives Buying with Drug Pipeline Update
BioMatrix Scientific Group, Inc. (OTCMKTS:BMSN) proved once again that it needs publicity to boost its price growth. After a few subdued weeks, BMSN was bought up again, leading to a price growth of more than 37%, not unusual for a stock that reached $0.0033. BMSN is an anomaly in that it is a promising biotech company that nevertheless has not broken out of the extremely underpriced range. 
The latest PR is the gem of pharmaceutical news, a development on a key patented therapy. BMSN presented new data to the FDA on its Hemaxellerate treatment of aplastic anemia. Unfortunately, the data concern only animal models- which means the company is still early in the development of this drug, and years away from marketable opportunities or later-stage trials. Still, investors’ forums are extremely optimistic that despite the slow movement, BMSN is on track and would be a suitable long-term investment. 
This enthusiasm is problematic- the BMSN share structure is diluted, and this means that enthusiastic climbs to $0.0075 were followed by a crash toward $0.0025, before a bit of a recovery. Still, the financial padding remains rather slim, and the losses are piling up while the drug pipeline is in the early stages, leading to the following financial picture:
- cash: $268 thousand
- current assets: $283 thousand
- total current liabilities: $1.3 million
- revenues since inception: $0
- quarterly net loss: $920 thousand
Despite the dividend in March, BMSN shows clearly that without constant updates and reminders, it is forgotten by almost everyone but the most ardent fans.
On the OTC markets, the biotech sector is presented by marijuana companies, as some conventional biotech firms pick up the new trend. A recent mover that is clinging to rather high positions is Fusion Pharm, Inc. (OTCMKTS:FSPM). Currently, the price stemmed its slide and stood at $2.35. Unfortunately, this position follows a steep peak to about $9. FSPM could not hold onto that price, which was brought about by the amazing enthusiasm for MMJ tickers.
We will be tracking BMSN, as there were promises for a run in the summer months. Price targets at investors’ forums speak of 23 cents by October. But this would all depend on momentum and the right amount of news. The OTC page for BMSN does not reveal the free float, but the company has 2.9 billion shares outstanding. This could be a problem, as too many shares available could depress the price and dash any hopes of a sustained run.
Titan Pharmaceuticals, Inc. (OTCBB:TTNP) also had one of its better days, spiking toward $0.62, but for now those days are a fluke, still not making up a clear rising trend. TTNP rose strongly as it expected a green light from the FDA, but the long hard scrutiny caused a crash and a sideways drift at much lower prices. While TTNP has the potential to revive, it reveals the risks of biopharmaceutical stocks.
If you like BMSN for its rock-bottom price, keep in mind that this is no guarantee corrections won’t happen. When it comes to double-zero stocks, there is plenty of room at the bottom.
