RepliCel Life Sciences is hugely undervalued, says Euro Pacific

Euro Pacific Canada analyst Doug Loe sees a lot of upside in upstart RepliCel Life Sciences (RepliCel Life Sciences Stock Quote, Chart, News: TSXV:RP).

This morning, Replicel announced that the first three patients from its 30 patient Phase 1 clinical trial evaluating the autologous hair follicle derived non-bulbar dermal sheath cells as a skin rejuvenation treatment in patients with UVdamaged and aged skin were enrolled.

“The enrolment of our first three participants is a significant step in the clinical development of RCS-01 as we explore the product’s safety, and via molecular markers, its potential to reverse the signs of aging by providing UV-naive collagen-producing fibroblast cells directly into affected areas of the skin. We believe that as an autologous product, RCS-01 represents an industry game changer due to its potential to provide long-term, sustainable results for fine wrinkle lines and UV-damaged skin,” said the company’s chief medical officer Dr. Rolf Hoffmann. “We look forward to following up with these participants as we assess the safety and efficacy of RCS-01 as a cell-based treatment for fine wrinkle lines typically seen on the face, hands and other UV-affected areas.”

Loe notes that RCS-01 has shown in prior studies to release high quantities of type I collagen. He says these levels are higher, in fact, than any other cellular therapy he has reviewed. The analyst says he is looking forward to outcomes, which will assessed at the 12 and 24-week mark.

“We are encouraged by the progress made in advancing all RepliCel hair-follicle derived cell therapies into formal clinical testing, including RCS-01 and also RCT-01, for which patient enrolment for a 28-patient Phase I/II Achilles tendinosis study at UBC is ongoing (data expected Jul/16) and the RCH-01 trial expected to generate data in FH117,” said Loe.

In a research update to clients today, Loe maintained his “Speculative Buy” rating and one year target price of $1.50 on RepliCel Life Sciences, implying a return of 328% at the time of publication.

Until 2011, Vancouver-based RepliCel concentrated on hair regeneration, aiming to make a dent in the $3 billion annual male pattern baldness industry. But when the far-reaching effects of its solution became apparent to its founders, RepliCel began expanding its offer to apply the technique of using cell therapy to encourage the healing of damaged or injured tissues to other body parts.