What's Next For US Stem Cell Inc (OTCMKTS:USRM)?

A couple of weeks ago, we published this piece on US Stem Cell Inc (OTCMKTS:USRM). Our coverage was essentially a response to an Associated Press report that seemed to accuse a treatment center in Florida that is owned and operated by a US Stem Cell subsidiary of blinding three women with unapproved stem cell therapies, and the subsequent selloff seen in the stock as markets responded to the news.We concluded with this statement:

"We see this as an opportunity – one to get in at a discount ahead of US Stem Cell’s fortunes reversing and the company revaluing to reflect its true potential as both a company, and a player in the stem cell sector in the US."

At the time of our making of this statement, US Stem Cell went for a little over $0.02 a share. The company closed out last week for $0.08 a piece. That's a 300% run in a couple of weeks. We don't think this is the end of the action, however. Sure we'll probably see a bit of a correction as traders bank profits, but looking longer term, we think this is just the start of this company's advance.Before we get into why, it's worth clearing something up. These sorts of companies are operating in a space that is relatively unregulated right now, and that – for many – could be a problem. It's a major risk factor on an exposure, and we recognize that. With that said, they are operating as such only for the near term, and with US Stem Cell in particular, this is a company that is working towards bringing its therapies in line with FDA regulatory compliance. As such, it's sort of a win win. This model allows the company to work towards asset registration the FDA, while also generating revenues from ongoing operations. This brings with the catalysts associated with a more traditional drug development program, but allows allows the company to reduce its need to raise capital (and in turn, reduce the dilution risk a shareholder has to shoulder) at the same time.So, that out the way, what's important here?We've said it before, but we'll reiterate – anyone looking to get some real insight into the company should check out this presentation by CSO Kristin Comella. She's a very respected stem cell scientist and she's the one that is driving US Stem Cell's development program. She's also treating herself with the stem cell therapies that she's offering patients – perhaps not overly pertinent to an investment thesis, but pretty interesting nonetheless.For those that don't want to watch the presentation, the company has developed a treatment that involves the extraction of stem cells from the fatty tissue of a patient, a then introduction of these stem cells into a particular therapeutic focus area. Arthritis of the knee? Inject fat stem cells into the knee joint. Back pain? Inject the cells into or around the spinal region. That's the sort of approach US Stem Cells is taking, and there's a mounting body of evidence that suggests its working. With more than 7,000 patients treated, and an adverse event rate of less than 0.01%, US Stem Cell has what looks to be a compelling case for regulatory approvals, and its forward model is to basically organize one or more of its treatment types into a series of trials in an attempt to win said approval.And that's where the catalysts are coming from going forward.It's lead development asset, what it's calling MyoCell, is reportedly about to pick up fast track designation, and the development pathway that follows should bring with it numerous catalysts that – in turn – should draw speculative volume towards US Stem Cell.It's early days, of course, and while the revenues that the company generates will help to foot the R&D bill, they aren’t going to totally remove the necessity for equity raise. Clinical trials, and especially the sort that involve stem cell science, are costly endeavors, and it's the early stake holders that are going to have to meet this cost.For those that can get past this, however, and that can also get over the fact that this industry is a little bit 'wild-west' right now, this one is a potentially rewarding play with numerous near term catalysts.We will be updating our subscribers as soon as we know more. For the latest updates on USRM, sign up below!Disclosure: We have no position in USRM and have not been compensated for this article.