This from Today’s Financial News:

We’ve already taken double-digit gains on Aastrom Biosciences, Inc. (NASDAQ:ASTM),  Cerus Corporation (NASDAQ:CERS), and Geron Corporation (NASDAQ:GERN).

But these stocks are by no means done with their upward momentum.

Biotech companies continue to be a great investment – and these three are some of the best out there.

As the market takes another hit and these stocks artificially deflate, I recommend that TFN investors should again pick up shares.

And I’ve found another company that I believe is on the verge of a breakout.

But first, what’s so great about the three companies I selected in November? Let’s review…
Aastrom Biosciences, Inc. (NASDAQ:ASTM) develops products for the repair or regeneration of human tissue. It’s proprietary Tissue Repair Cell (TRC) technology involves autologous, mixed-cell products containing stem and early progenitor cells to treat cardiac and vascular tissue regeneration.

The company launched Phase II IMPACT-DCM clinical trials for the evaluation its Cardiac Repair Cells (CRCs) in the treatment of dilated cardiomyopathy (DCM) or congestive heart failure. DCM is a contributing factor in at least 250,000 deaths each year.

The U.S. Food and Drug Administration gave Aastrom’s CRCs the Orphan Drug Designation. That means expedited FDA review, a reduction of filing fees, possible tax credits, and the right to seven years of marketing exclusivity once the product receives FDA approval.

I recommend you buy shares of Aastrom Biosciences, Inc. (NASDAQ:ASTM) under $0.85.

Cerus Corporation (NASDAQ:CERS) has developed an INTERCEPT Blood System to find and inactivate blood-borne pathogens in donated blood components to be used in transfusions.

The INTERCEPT red blood cell system uses the small molecule S-303 to bond with the nucleic acids of pathogens and prevent their replication. A pH change is required to allow the bonding and thereby blocking the DNA and RNA to prevent replication.

This would destroy transfusion-transmitted infections from viruses, bacteria, and parasites.

For platelets and plasma, the same result is achieved by using the molecule amotosalen HCI and ultraviolet A light instead of a pH change to block the replication of pathogens.

This technology could truly revolutionize blood component donation.

The system is currently being used on both platelets and plasma collected in Europe and the Middle East.

The company is preparing for European Phase III clinical trials and will be working with the German Red Cross to commercialize their INTERCEPT system for red blood cells. And it’s initiated Phase I clinical trials for the same system in the U.S.

I recommend you buy shares of Cerus Corporation (NASDAQ:CERS) at or under $2.

Geron Corporation (NASDAQ:GERN) has seen a nice jump in stock price of late and it’s no wonder.

DNA at the end of chromosomes is called the telomere. It has been suggested that the manipulation of the telomere could do everything from stopping the aging process in cells to treating and containing cancer.

It’s telomerase activity that stabilizes cancer cells and allows them replicate indefinitely.

The researchers at Geron believe they can instruct a patient’s immune system via autologous dendritic cells how to identify and attack cancer cells while sparing other, non-threatening cells. (Dendritic cells are the antigen-presenting leukocytes that initiate the primary immune response.)

They achieve this by introducing telomerase characteristics specific to cancer cells. An immune response then occurs when cells are found with those telomerase characteristics.

Merck & Co., Inc. (NYSE:MRK) entered an agreement with Geron for the exclusive research, development and commercialization of the company’s vaccines targeting telomerase. In December of 2007, Merck initiated a clinical trial of the Geron-created vaccine GRNVAC1.

And that’s not all this company has up its sleeve…

Geron is collaborating with the University of Oxford on a variation to GRNVAC1 called (unoriginally) GRNVAC2.

Here, instead of isolating dendritic cells in each patient, the researchers are attempting to produce them from human embryonic stem cells.

This could act to prevent an immune response against an antigen by instructing the immune system to tolerate it.

On the therapy side of things, Geron’s drug GRN13L seeks to inhibit telomerase activity, thereby destabilizing and causing the death of the cancer cells.

In early December, an interim analysis of GRN163L Phase I clinical trials for the treatment of patients with relapsed and refractory multiple myeloma showed promising results.

This malignancy of plasma cells typically arises in the bone marrow and goes on to impact tissues and organs.

For two patients in the study, the bulk tumor fraction of bone marrow decreased by 78% and 48% respectively.

In addition, activity from the telomerase in the myeloma stem cell-containing fraction of the patients’ bone marrow dropped by 33% and 63%, respectively.

Geron is also working on treatments for heart disease, spinal cord injury, osteoarthristis and more. Check out their website for more details.

I recommend you buy shares of Geron Corporation (NASDAQ:GERN) at or under $6.

But there is another biotech stock I believe to have big potential…

Cytori Therapeutics, Inc. (NASDAQ:CYTX) develops, makes and markets regenerative therapy from adipose tissue (fat tissue).

Adipose tissue has been found an extremely good source for adult stem and regenerative cells.

Cytori is working on using this technology in the treatment of conditions such as cardiovascular disease and gastrointestinal disorders, and in reconstructive surgery and radiation-induced tissue injuries.

Its Celution 800 System product for reconstructive surgery has hit record sales in Europe.

The Celution 900 System cryopreserves a patient’s own stem and regenerative cells is being marketed worldwide.

These systems process the patient’s cells at their bedside, as they are needed.

The company’s StemSource cell banking is very popular in Japan. And interest is picking up everywhere.

Banking one’s cells for future needs could soon become common practice.

To read a more thorough breakdown of what the company has in the works, go to its website.

I recommend you buy shares of Cytori Therapeutics, Inc. (NASDAQ:CYTX) at or under $5.

Source: Four biotechs set to soar

This from Today’s Financial News:

Investors expect President-Elect Obama to make good on his campaign promise to lift restrictions on federally funding human embryonic stem cell research. House Speaker Nancy Pelosi has vowed to introduce legislation for a regulatory framework necessary to enable expanded stem cell research.

Biotechnology experts consider both the regulatory framework (to underpin clinical trials) and the additional funding to be crucial to the future of the American bio-pharma industry. In fact, it could ring in a new era for American stem cell companies. Many foreign stem cell researchers already fear that even private and institutional U.S. funding may be “repatriated” to U.S. companies.

No matter how long it may take for federal dollars to have a measurable effect on companies’ actual bottom lines, stem cell research will make headlines in the weeks ahead.

This is just the kind of opportunity we at TFN… and our premium service Hot Stock Confidential… are looking for. Right now, we’re keeping our eyes on literally dozens of similar opportunities.

As a general rule, the equity recommendations we select for Hot Stock Confidential Members are stocks we’d buy ourselves, even in a “normal” market… and would have no problem recommending to our relatives. They’re companies whose insiders are buying… that have easy-to-understand business concepts, established markets, growing revenues and unique products. Some are making great progress in the fields of biotechnology… genetics… medical diagnostics. Long-term, they will make good investments.

But in the meantime, every small breakthrough… every successful step in the approval process… holds the potential for amazing short-term profits. Especially in volatile markets like this!

In many instances the daily trading volume of these companies is so light, a single story in the mainstream media… an Internet rumor… a line dropped on a bulletin board… could double or triple their average daily trading activity and push stock prices out of our advisable buying range.

Use the current market slump to position yourself for publicity-driven price spikes in some of the best-situated stem cell stocks.

We’ve found three of the hottest stem cell stocks around. Each has winning potential… and is currently selling at bargain rates! Invest now… and you could see gains of 50%, 100%, even 200% within the first two quarters of 2009.

These stocks are priced below $5 each. Even a moderate investment may pay off handsomely if the reinstatement of federal funding triggers the wave of investor interest we expect it to!

HOT STEM CELL STOCK #1: Aastrom Biosciences, Inc. (NASDAQ:ASTM)

Over 5 million people in the U.S. suffer from cardiomyopathy (heart muscle disease). The condition is a contributing factor in at least 250,000 deaths each year.

Dilated cardiomyopathy (DCM) is the most common form of the disease. More men suffer from it than women. It usually occurs in those aged between 20 and 60 years — though even children can have it. In fact, my own brother is a sufferer and I lost a grandmother and uncle to DCM.

Patient numbers are bound to increase as the U.S. population ages.

But one company is hoping to reduce the mortality rate through revolutionary treatments.

Aastrom Biosciences, Inc. develops products for the repair or regeneration of human tissue. Aastrom’s proprietary Tissue Repair Cell (TRC) technology involves autologous, mixed-cell products containing stem and early progenitor cells to treat cardiac and vascular tissue regeneration.

Mending the Ailing Heart

The company has just launched Phase II IMPACT-DCM clinical trials for the evaluation Aastrom’s Cardiac Repair Cells (CRCs) in the treatment of dilated cardiomyopathy (DCM) or congestive heart failure.

The CRCs are delivered surgically, directly into the heart muscle.

The company intends to enroll patients with end-stage DCM. Half will have ischemic DCM (often caused by repeated heart attacks) and the other half, non-ischemic DCM (where the damage is due to hypertension, viral infection or alcoholism).

Orphan Drug Designation

Early indications from a “compassionate use” case in Germany are promising. (“Compassionate use” means an experimental therapy that is not yet officially approved but permission has been granted to treat a patients who has run out of other options)

As a result, the U.S. Food and Drug Administration gave Aastrom’s CRCs the Orphan Drug Designation. That allows for an expedited FDA review, a reduction of filing fees, possible tax credits, and the right to seven years of marketing exclusivity once the product receives FDA approval.

The current market has battered down stocks like this micro cap. As a matter of fact, the Nasdaq has given Aastrom until March to bring their stock price above $1 for 10 consecutive days. Otherwise, Aastrom will lose their listing.

Of course, they aren’t the only company in this situation. But with the increased interest in stem cell research, potential federal grant money coming, and a treatment that — if it works — could change the lives of millions, I recommend you buy shares of Aastrom Biosciences, Inc. at or under 85 cents.

I expect this stock to go up at least 20% in the next 6 months.

PS. This stock pick is part of a free special report for Hot Stock Confidential subscribers, which offers two more hot stem cell stock picks and much, much more. Click here for more information.

Source: The 3 Hottest Stem Cell Stocks Under $5