The potential therapeutic applications of encapsulated cells are enormous. In the US alone, it has been estimated that nearly half-a-trillion dollars are spent each year to care for patients who suffer tissue loss or dysfunction. Over 6 million patients suffer from neurodegenerative disorders such as Alzheimer’s disease and Parkinson’s disease, over 14 million patients suffer from diabetes, and millions more from liver failure, hemophilia, and other diseases caused by the loss of specific vital cellular functions.
Have you wondered about the widespread notice given by companies when they go public? Often, these announcements make big headlines in the finance pages and economic news. Why is a company, say Bitcoin Trader, for example going public so significant? Or simply, why is too important for the companies and the public to remain informed about the shares being listed in the public trading forum? The benefits of Initial Public Offering or IPO are strategically placed at very high levels as this is expected to become the major turning point in the growth of the company in many ways.
Why do companies go public?
A company when plans to makes its shares, that is, a part of its ownership to the public, the main purpose is to raise funds. The funds may be utilized for a variety of purposes like a new division, expansion, reconstruction, entering new markets etc. Selling shares at fair prices to individuals or other companies has advantages when compared to other shared ownership methods like partnership, takeovers, merger etc because:
- Giving the ownership rights of a particular number of shares does give the shareholders their share of profit as dividend and sometimes, a place in the membership board, but the propeller still remains in the hands of the main company.
- You are luring the shareholders with a part of your ownership rights at a certain price. The price goes public and is, in a way a representation of the company’s worth in the market. when the share value goes up, so does the company’s value and if it goes down, the result is negative to the company’s image.
- In other forms of ownership transfers, the capital raised is generally from a limited number of investors, while an IPO, the shareholder’s number can be much higher making the collective fund a lot larger.
- With IPO, the company is not burdened with any kind of staff rotation, management changes, employee or product policies or contracts. The shareholders get better liquidity by trading in the open market.
- When the company’s IPO shares fetch good prices are consistently performing well, it can offer number of shares in the secondary offering and thereby garner more funds and more markets.
- When a company notifies IPO, its reputation and credibility among other investors and credit agencies and can easily approach these professional financial doors. Financing becomes easy and so does the priority services associated with it. The company is liable to get rebates on interest rates, extra overdraft amounts, additional benefits on services, accounts and banking operations.
When your business is set to meet a new milestone through IPO, the company prepares itself to overcome any negative shades adjoining the step.
It appears likely that by the end of the decade clinical trials of encapsulated cells to treat many of these diseases will become a reality. The Food and Drug Administration has already authorized studies to evaluate the safety and biological activity of several types of systems. A number of issues will have to be addressed, including the sourcing of raw materials, the design and building of manufacturing facilities, the scale-up and optimization process, storage and distribution of the product, and quality control.
PMID: 9631060 DOI: 10.1038/nbt0996-1107
[PubMed – indexed for MEDLINE]