On the record, everybody always says that competition is good. I actually suspect many of the businesses that say that don't really believe that. However, here's a concrete example of competition directly bringing in money for a company.
Cardio3 BioSciences, the Belgium biotech firm based on Mayo Clinic
research, saw its stock on the NYSE Euronext stock exchanges in Brussels and Paris spike this week after a competitor, Mesoblast, got the greenlight from the FDA to start clinical trials of its similiar regenerative treatment.
Cardio3's therapy uses stem cells from a
patient's bone marrow. Through a proprietary process called
Cardiopoiesis, Cardio3 re-programs those cells to become heart cells.
The cells are then injected back into the patient's heart to repair
As a shareholder, Mayo Clinic controls 10.44 percent of Cardio3's stock, according to Cardio3.
Here's some from a Tuesday piece by Simeon Bennett of Reuters about this week's bump.
Cardio3 advanced 50 cents to 24.50 euros at the 5:35 p.m.
close of trading on Euronext Brussels, giving the Mont-Saint-Guibert-based company a market value of 155.2 million euros
($209.1 million). More than 544,000 shares were traded, 38 times
the three-month daily average. The stock has surged 78 percent
in the past eight trading days.
Mesoblast Ltd., an Australian company that’s using similar
technology, rose to an eight-month high on Nov. 1 after saying
it gained Food and Drug Administration approval to start a late-stage study with its partner, Teva Pharmaceutical Industries, of its stem cell in patients with heart failure.
That development “makes us quite confident in seeing the
technology as an emerging one, and more than that, an approvable
one,” Arnaud Guerin, an analyst with Portzamparc Societe de
Bourse in Nantes, France, said by phone today.