Day

May 8, 2014

Whitefish, MT / May 5, 2014 / CrowdGather Inc. (CRWG), a leading owner and operator of online communities and social networks, recently announced the acquisition of Boston-based PLAOR for approximately $5 million in stock. The move marks an ongoing shift by management towards mobile apps, social gaming, and hosted forums rather than its wholly owned and operated forum network.

In this article, we’ll take a look at the company’s move into the social gaming industry, transition away from it’s vertical interest, owned and operated forums, and what these developments might mean for both shareholders and potential investors.

Move into Social Gaming

The social gaming industry is expected to grow at a 16.1% CAGR to reach $17.4 billion by 2019, according to Transparency Market Research, driven by increasing demand for smartphones and tablet PCs. Innovations in the provision of virtual goods helped generate approximately 60% of the revenue in the industry by 2012, followed by advertising revenues from more traditional venues.

PLAOR is an emerging new social gaming publisher led by industry professionals from Microsoft Corporation’s (MSFT) XBOX team, Disney Company’s (DIS) Interactive division, and Sony Corporation’s (SNY) Online Entertainment division. According to a recent press release, the company is generating approximately $1 million in revenue on an annualized basis with over 20,000 average daily users.

Leveraging CrowdGather’s existing users and capital markets access, PLAOR should be able to significantly grow its revenue and user base over the coming years, particularly given the industry expected 16.1% CAGR through 2019. The existing users in particular should provide immediate synergies to boost the number of daily active users within the next couple of quarters.

“Our expectation is that we will emerge from this merger as a stronger and faster growing business,” said CrowdGather Chairman and CEO Sanjay Sabnani in a recent press release. “Our vision is to create an exciting, high growth company that will leverage our traffic, users, and social media reach to provide PLAOR’s titles with immediate access to hundreds of thousands of potential players for their games.”

Could Placental Cell Therapy be a Preemptive Approach to Protecting Women from Disabling Strokes?

Preeclampsia, a common pregnancy complication, has been around for centuries, it wasn’t until last year that 3 congresswomen designated May as Preeclampsia Awareness Month. This year, NJ Governor Chris Christie officiated the proclamation. The condition took an ominous turn, last month when the guidelines, published in the journal, Stroke, advise doctors to consider preeclampsia to be a stroke risk factor akin to smoking, high cholesterol, and obesity linking it to hypertension even years after the pregnancy. The alarming news has created new awareness of the condition and may open more dialogues about new treatments, which hasn’t occurred in 100 years. Could the answer to potentially reversing the hypertension and inflammation seen in preeclampsia be found in cells of a healthy placenta?

New promising evidence may lead scientists to answer that question. According to findings from an early preclinical study led by Brett Mitchell, PhD, an Associate Professor of Internal Medicine at the Cardiovascular Research Institute (CVRI) at Texas A&M University College of Medicine, there is evidence that administering placenta-derived cell therapy may help reverse the symptoms, including hypertension associated with preeclampsia in a matter of days after dosing with no harmful effects to mother or baby. Dr. Mitchell, who devoted many years of his research on hypertension with a particular focus on preeclampsia/gestational hypertension, delivered placenta-based cells called PLX (PLacental eXpanded) cells into mice who had preeclampsia. The PLX cells were created and patented by Israeli-based Pluristem Therapeutics Inc., a leading developer of placenta-based cell therapies.

The proteins released by the PLX cells help the body heal itself and release therapeutic proteins in response to signals from the patient’s body. Dr. Mitchell’s team found that PLX cells were indeed effective in treating preeclampsia in their animal models. The cells were proven to reverse the hypertension in the mice who eventually delivered healthy offspring. Armed with this data, Pluristem convened a Clinical Advisory Board comprised of some of the world’s expert thought leaders in preeclampsia. Pluristem plans US Phase I trials in 2014. The company recently announced that they are filing a FDA Orphan Drug status for their drug for the indication of preeclampsia.

In this interview Pluristem’s Dr. Karine Kleinhause sheds some light on the topic and Pluristem’s role in the potential treatment of preeclampsia. Dr. Karine Kleinhaus, M.D., MPH, is the Divisional Vice President, North America at Pluristem Therapeutics. Prior to r joining Pluristem Therapeutics, she was an assistant professor in the departments of psychiatry and obstetrics and gynecology at the NYU School of Medicine. At NYU, Dr. Kleinhaus conducted medical research funded under a multi-year NIH grant. She has published more than 25 papers in leading peer-reviewed journals such as the Annals of the New York Academy of Science, American Journal of Medical Genetics, and American Journal of Epidemiology. Prior to that Dr. Kleinhaus practiced obstetrics and completed two fellowships at Columbia University.

Dr. Kleinhaus received her medical degree from Tel Aviv University, earned a Master of Public Health from Columbia’s Mailman School of Public Health, and a bachelor’s degree, cum laude, from Princeton University.