HART is a development-stage company that has successfully grown replacement tracheas (airways) out of a patient’s own stem cells. These replacement tracheas are then transplanted back into the patient’s body. This is a huge improvement over the traditional method of transplanting a donor trachea, which requires the patient to be on expensive immune-suppressing drugs that shorten their lifespan and have other complications.
HART has a market cap of $38M ($4.77/share). At the time of the spinoff, the company had $15M in cash and had spent around $16.5M developing its technologies so far ($31.5M in total). Given the risks in developing this technology, I believe that this spinoff may be undervalued.
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