WEBVTT - NYC Congestion Pricing, Stem Cell Therapy 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, radio news. 0:00:08.640 --> 0:00:12.680 This is Bloomberg Business Week, Insight from the reporters and 0:00:12.800 --> 0:00:16.800 editors that bring you America's most trusted business magazine, plus 0:00:17.000 --> 0:00:20.799 global business, finance and tech news. The Bloomberg Business Week 0:00:20.840 --> 0:00:25.760 Podcast with Carol Masser and Tim Stenovek on Bloomberg Radio. 0:00:26.480 --> 0:00:29.120 Well, if you live in and around, or work in 0:00:29.160 --> 0:00:31.200 and around New York City, you probably already know this. 0:00:31.240 --> 0:00:34.600 New York City kicking off its first congestion pricing program 0:00:34.720 --> 0:00:36.880 in the United States, part of an effort to reduce 0:00:36.880 --> 0:00:39.479 the number of vehicles in the world's most traffic clogged 0:00:39.680 --> 0:00:43.680 urban area while also raising money for transit infrastructure. General 0:00:43.720 --> 0:00:46.760 Lieber is the chief executive officer of the Metropolitan Transportation 0:00:46.880 --> 0:00:50.640 Authority are Authority, telling our Bloomberg Surveillance team of Tom 0:00:50.720 --> 0:00:53.800 Keen and Paul Sweeney on Bloomberg Radio earlier this morning, 0:00:54.200 --> 0:00:57.160 it's all about creating the twenty first century city. But 0:00:57.520 --> 0:00:59.920 he also cautioned it's not going to happen overnight. 0:01:00.880 --> 0:01:02.360 It's going to take a little while, so we're going 0:01:02.440 --> 0:01:04.800 to be watching it very closely, day by day, week 0:01:04.800 --> 0:01:07.960 by week. I don't expect to see some dramatic change 0:01:08.480 --> 0:01:10.640 on the first or the second day. Over time, we're 0:01:10.680 --> 0:01:13.880 expecting a ten to twenty percent reduction in traffic. That's 0:01:13.920 --> 0:01:16.080 what we're shooting for. New York is becoming a twenty 0:01:16.080 --> 0:01:19.120 first century city. We just did you know two train 0:01:19.240 --> 0:01:22.040 terminals the last couple of years. La Guardie air a 0:01:22.120 --> 0:01:25.200 total rebuild. It's number one in the country. JFK is 0:01:25.200 --> 0:01:28.120 getting rebuilt. I know your Newark Airport is getting investment. 0:01:28.520 --> 0:01:30.840 This is about being a twenty first century city where 0:01:30.840 --> 0:01:33.080 we don't spend all our time stuck in traffic. 0:01:34.200 --> 0:01:35.200 Well, there you have it. JOHNA. 0:01:35.240 --> 0:01:38.440 Lieber, the chief executive Officer of the Metropolitan Transit Authority 0:01:38.480 --> 0:01:41.160 with the Surveillance Team, earlier today on Bloomberg Radio, who 0:01:41.240 --> 0:01:44.199 also said he anticipates a ten percent to twenty percent 0:01:44.280 --> 0:01:47.400 reduction in New York City traffic over time. Thinking about 0:01:47.400 --> 0:01:50.240 New York City congestion, pricing, and the broader politic, especially 0:01:50.320 --> 0:01:52.760 the future of the Democratic Party, and putting it in 0:01:52.800 --> 0:01:55.440 an opinion column in The New York Times out early 0:01:55.600 --> 0:01:59.480 yesterday morning. Henry Gribbar, journalist and author of Paved Paradise, 0:01:59.520 --> 0:02:02.440 How Parking explains the world hard over, He joins us 0:02:02.480 --> 0:02:05.840 from Cambridge, Massachusetts, Henry. Good to have you back with 0:02:05.960 --> 0:02:10.560 us talk about the relationship between congestion, pricing and democratic politics, 0:02:10.639 --> 0:02:13.560 especially on a day where many Democrats are seeing the 0:02:13.560 --> 0:02:17.560 certification of president like Donald Trump and thinking to themselves, Wow, 0:02:17.960 --> 0:02:20.080 we really got to rethink how we handle ourselves over 0:02:20.080 --> 0:02:21.480 the next few years and what the future of the 0:02:21.520 --> 0:02:22.160 party looks like. 0:02:24.200 --> 0:02:26.840 Right. Sure, Well, when you look at the results of 0:02:26.880 --> 0:02:28.760 the election for November, you can see that some of 0:02:28.800 --> 0:02:32.240 the places that move strongest towards the Republican Party were 0:02:32.240 --> 0:02:34.200 the outer birds of New York City and the suburbs 0:02:34.240 --> 0:02:36.760 of New York City. So this is kind of ground 0:02:36.840 --> 0:02:40.120 zero for figuring out why some Democrats decided not to 0:02:40.200 --> 0:02:42.959 vote or decided to vote for Donald Trump. And I 0:02:43.000 --> 0:02:44.880 think one of the theories that's been in play here 0:02:45.080 --> 0:02:48.040 is that Democrats simply haven't done a good job running 0:02:48.120 --> 0:02:51.080 the places they control, which is to say, big blue 0:02:51.120 --> 0:02:54.919 cities and blue states like New York, like Boston, like Chicago, 0:02:55.040 --> 0:02:58.639 like Los Angeles, San Francisco. Right, And so in that sense, 0:02:59.280 --> 0:03:02.440 this is a pole a pretty bold urban policy gambit 0:03:02.560 --> 0:03:05.840 to show the Democrats have big ideas about how to 0:03:05.919 --> 0:03:07.840 improve these places. And one of the things that struck 0:03:07.880 --> 0:03:11.000 people in particular was the sense of disorder, and congestion 0:03:11.080 --> 0:03:13.520 pricing is nothing if not an attempt to bring order 0:03:13.560 --> 0:03:15.040 to the streets of New York City. 0:03:14.840 --> 0:03:17.440 And we will see ultimately it does bring order to 0:03:17.520 --> 0:03:21.000 New York City. Having said that, Henry, is congestion pricing, 0:03:21.040 --> 0:03:23.400 in your view, a big step toward creating the twenty 0:03:23.400 --> 0:03:27.240 first century city. 0:03:27.320 --> 0:03:29.200 I think one of the things that has been apparent 0:03:29.200 --> 0:03:31.959 in New York over the last five or ten years 0:03:32.080 --> 0:03:34.920 is that the amount of traffic in the central Business 0:03:34.920 --> 0:03:37.720 District is making it really hard for the city to 0:03:37.720 --> 0:03:41.200 fulfill its basic functions, to say nothing of its reputation 0:03:41.240 --> 0:03:44.080 as a global city. I mean, a building catches on fire, 0:03:44.200 --> 0:03:47.200 somebody needs an ambulance, somebody needs to make a delivery. 0:03:47.440 --> 0:03:50.200 Nobody knows how long those things are going to take 0:03:50.840 --> 0:03:53.120 because the traffic has become so bad. So I think 0:03:53.600 --> 0:03:56.040 when Lieber talks about the idea of a twenty first 0:03:56.040 --> 0:03:59.240 century city, what he's saying is we need to have 0:03:59.520 --> 0:04:02.760 a kind of liability about the ease of doing business 0:04:02.760 --> 0:04:05.080 and going about basic tasks here. And that's what congestion 0:04:05.320 --> 0:04:08.200 pricing is very much designed to do. In addition, of 0:04:08.200 --> 0:04:10.920 course to raising money for the transit system. 0:04:10.960 --> 0:04:12.920 All right, So going back to the kind of political 0:04:13.000 --> 0:04:14.880 aspect of this or what this means for the future 0:04:14.920 --> 0:04:18.880 of the Democratic Party, Henry, So, how does if New 0:04:18.960 --> 0:04:21.640 York City officials and the city kind of get it 0:04:21.920 --> 0:04:24.560 right in quotation marks if you will, how does it 0:04:24.600 --> 0:04:28.000 really kind of help everyone along the high end of 0:04:28.040 --> 0:04:33.680 the economy the lower end of the New York City economy. 0:04:33.680 --> 0:04:35.919 Sure well, I think the goals of congestion pricing are 0:04:35.960 --> 0:04:39.599 pretty clear about that that there's going to be cleaner air, 0:04:39.880 --> 0:04:41.719 there's going to be faster commute, it's going to be 0:04:41.720 --> 0:04:44.360 easier to do business, and there's going to be more 0:04:44.360 --> 0:04:46.559 money for the mass transit system that of course moves 0:04:46.600 --> 0:04:49.200 the vast majority of people in and out of Manhattan 0:04:49.240 --> 0:04:51.360 every day. The number of people drive into Manhattan is 0:04:51.400 --> 0:04:53.760 a small fraction of that. But I think the question 0:04:53.800 --> 0:04:57.680 about how to ensure its popularity among the constituents in 0:04:57.720 --> 0:04:59.520 New York City and especially in the suburbs of New 0:04:59.600 --> 0:05:02.480 York City, that's the difficult question for the Governor of 0:05:02.520 --> 0:05:04.880 New York at the local right. Because she's up for 0:05:04.960 --> 0:05:09.040 reelection next year, this has become a subject of intense 0:05:09.080 --> 0:05:13.920 political debate since she decided to you know, open up 0:05:13.960 --> 0:05:16.679 the open up the box, and tinker with the pricing, 0:05:16.760 --> 0:05:19.520 tinker with the implementation date. And so I think what 0:05:19.560 --> 0:05:21.039 she needs to do is she needs to show that 0:05:21.120 --> 0:05:24.320 this works. And the challenge is blue cities, right, we 0:05:24.400 --> 0:05:26.880 know this. They move slowly and they build things at 0:05:26.920 --> 0:05:29.359 high cost. And so when you implement a program like this, 0:05:29.600 --> 0:05:32.160 people expect to see results in exchange for the money 0:05:32.200 --> 0:05:34.520 that's being taken at those tolls. And the challenge is, 0:05:34.880 --> 0:05:36.800 how can we come up with something in New York 0:05:37.000 --> 0:05:40.840 to show results from congestion pricing really quickly? Because if 0:05:40.839 --> 0:05:42.800 the streets are you know, the traffic is down by 0:05:42.800 --> 0:05:45.680 five or six percent, that's not necessarily something that people 0:05:45.720 --> 0:05:47.440 are going to be able to point their finger at. 0:05:47.480 --> 0:05:49.720 I mean, how do you know, how do you even 0:05:50.200 --> 0:05:53.280 register that kind of decline in traffic without having some 0:05:53.360 --> 0:05:55.640 kind of infrastructural improvement to show for it. And I 0:05:55.640 --> 0:05:57.279 think that's what the city needs to accomplish. 0:05:57.320 --> 0:05:59.760 Now, will she be given the chance to actually show 0:06:00.120 --> 0:06:03.520 the improvement or any improvement, given that Donald Trump has 0:06:03.560 --> 0:06:06.000 opposed it and has vowed to get rid of it. 0:06:06.080 --> 0:06:08.200 This was put in a place before he takes office, 0:06:08.200 --> 0:06:09.599 Does he have the power to get rid of it. 0:06:11.480 --> 0:06:13.400 I don't think he does have the power to get 0:06:13.480 --> 0:06:15.800 rid of it overnight. I mean, the federal role in 0:06:15.839 --> 0:06:19.359 this was certifying the environmental review, and that part is done, 0:06:19.440 --> 0:06:22.000 So I'm not sure that the federal government can go 0:06:22.040 --> 0:06:25.120 in and rescind the approval that they've already given for 0:06:25.240 --> 0:06:27.680 the program to go forward. Of course, there are several 0:06:27.800 --> 0:06:32.680 lawsuits pending, so there's a lot of uncertainty about this proposal. 0:06:32.680 --> 0:06:34.799 But I would just say as far as it's supporters 0:06:34.839 --> 0:06:38.400 or concerned, they have somewhat rested on the assumption that 0:06:38.640 --> 0:06:41.600 congestion pricing will be popular because it has been popular 0:06:41.680 --> 0:06:44.560 in other places that have implemented it after time, Right, 0:06:44.800 --> 0:06:49.559 And that depends on showing visible improvement, on making real 0:06:49.680 --> 0:06:52.839 the infrastructure that people expect to use and receive in 0:06:52.880 --> 0:06:55.400 exchange for that money that's being taken. And they can 0:06:55.440 --> 0:06:57.400 do that right, and they can do that overnight by 0:06:57.440 --> 0:07:02.680 creating bus lanes, pedestrians spaded actually emergency vehicle lanes, right, Like, 0:07:02.760 --> 0:07:06.440 make permanent the improvement that you see before the sticker 0:07:06.480 --> 0:07:09.720 shock fades and drivers return and realize that in fact, 0:07:10.440 --> 0:07:11.920 if a lot faster to drive Manhattan. 0:07:11.960 --> 0:07:14.920 Henry, last question, just just to kind of the payoff 0:07:14.960 --> 0:07:17.960 of your op ed in the New York Times. You 0:07:18.040 --> 0:07:21.280 say that people support the policies and the politicians that 0:07:21.320 --> 0:07:24.440 they get something out of this concept of deliverism. 0:07:24.520 --> 0:07:24.680 Right. 0:07:24.720 --> 0:07:27.760 People, if they feel like they're getting something out of it, 0:07:27.880 --> 0:07:31.040 they're going to be supportive, and that's what shows political 0:07:31.120 --> 0:07:33.040 change or political sway, and just got about a. 0:07:33.000 --> 0:07:37.679 Minute here, Yeah, that's right, And I think the premise 0:07:37.720 --> 0:07:39.880 of this, right is that these tools are being done 0:07:39.920 --> 0:07:42.960 in exchange for funding mass transit in around New York City. 0:07:43.000 --> 0:07:45.960 And the MTA has a list of improvements such as 0:07:46.360 --> 0:07:50.120 elevators to make subway stations accessible for people with strollers 0:07:50.120 --> 0:07:52.840 and wheelchairs, et cetera. But that stuff takes time, right, 0:07:52.880 --> 0:07:54.920 and it costs way more money than it should, as 0:07:54.920 --> 0:07:58.200 we know, and so reforming the construction process would help. 0:07:58.480 --> 0:08:01.440 But I think in the meantime, the low hanging fruit 0:08:01.480 --> 0:08:05.679 here is to create improvements for the vast majority of 0:08:05.800 --> 0:08:08.560 the people who travel on the surface streets, which is 0:08:08.600 --> 0:08:10.960 the people who travel by bus, right, And that's that's 0:08:11.040 --> 0:08:14.120 sort of the opportunity that they have to make these 0:08:14.160 --> 0:08:18.600 improvements visible immediately before the midterm elections come around, and 0:08:18.640 --> 0:08:21.240 this becomes the subject of every gubernatorial debate. 0:08:21.280 --> 0:08:24.000 Did you say circus streets, surface streets a surface, Okay, 0:08:24.000 --> 0:08:27.640 because sometimes I feel like a circus and that kind 0:08:27.680 --> 0:08:29.960 of I could I could jump on that one as well. Hey, Henry, 0:08:30.080 --> 0:08:33.480 great timing, and really appreciate you coming on and spending 0:08:33.520 --> 0:08:37.400 your view. Henry Goobar, journalist and author Paid Paradise, How 0:08:37.440 --> 0:08:40.200 parking explains the world hard over. 0:08:40.400 --> 0:08:44.200 So what are you getting a lot of texts about 0:08:44.200 --> 0:08:46.920 people wondering about congestion pricing. I'm getting all these texts like, hey, 0:08:46.960 --> 0:08:48.400 can you see a difference? Can you see a difference? 0:08:48.800 --> 0:08:49.480 I'm inside. 0:08:49.720 --> 0:08:51.720 Yeah, I don't know, not yet, I don't know. 0:08:52.600 --> 0:08:56.280 You're listening to the Bloomberg Business Week podcast. Catch us 0:08:56.360 --> 0:08:59.360 live weekday afternoons from two to five these during listen 0:08:59.400 --> 0:09:03.000 on Apple Play and Android Auto with the Bloomberg Business app, 0:09:03.160 --> 0:09:06.000 or watch us live on YouTube. 0:09:06.520 --> 0:09:08.559 Well, the company closed out last year with a stock 0:09:08.600 --> 0:09:11.240 price increase of eight hundred percent. No, we are not 0:09:11.320 --> 0:09:15.680 talking about any Ai Darling here. It's a biomedical services company, 0:09:15.720 --> 0:09:20.400 miso Blast, which develops drugs for cardiovascular disease on cology, hematology, 0:09:20.440 --> 0:09:22.720 and more. The company based in Australia, but it's got 0:09:22.720 --> 0:09:25.400 a market cap of about two point two billion dollars. 0:09:25.800 --> 0:09:27.880 Shares of the company's ADRs, Carol that trade in the 0:09:27.920 --> 0:09:30.200 US are aut more than fifty percent since mid December 0:09:30.679 --> 0:09:34.760 after the company's Ryan sil got FDA OK for pediatric 0:09:34.800 --> 0:09:35.760 graft versus host. 0:09:35.840 --> 0:09:39.080 It's a big development. Doctor Sylvie Etsci is chief executive 0:09:39.080 --> 0:09:41.840 officer and managing director at Misoblast and he joins us 0:09:41.840 --> 0:09:44.520 in our Bloomberg Interactive Brokers studio. So nice to have 0:09:44.600 --> 0:09:47.520 you here. Welcome, Welcome. You founded the company back in 0:09:47.520 --> 0:09:50.200 two thousand and four, so over twenty years ago. Tell 0:09:50.280 --> 0:09:52.360 us a little bit about this journey and where we 0:09:52.400 --> 0:09:54.640 are today and how significant this development is for you. 0:09:55.360 --> 0:09:57.240 Thanks for having me. Look. 0:09:57.800 --> 0:10:01.880 Royonsal is the first ever FDA approved adult cell therapy 0:10:01.880 --> 0:10:04.800 regenera of medicine cell therapy in the United States. It 0:10:04.840 --> 0:10:06.920 has taken us twenty years to get to this point, 0:10:07.120 --> 0:10:10.200 but that's just how long it takes to develop and 0:10:10.280 --> 0:10:14.240 commercialize a brand new medicines in a new class of therapies. 0:10:14.400 --> 0:10:17.200 It's the first adult stem cell product off the shelf. 0:10:18.320 --> 0:10:22.480 It's been approved for children with a devastating complication called 0:10:22.520 --> 0:10:26.040 Graphs host disease, which is a complication that occurs about 0:10:26.040 --> 0:10:29.160 fifty percent of children who have a boma transplant after 0:10:29.200 --> 0:10:33.080 they've been cured of their leukemia, and as many as 0:10:33.080 --> 0:10:36.240 seventy to ninety percent of children die from this disease. 0:10:36.240 --> 0:10:39.480 There are no other approved therapies, and in our face retrial, 0:10:39.960 --> 0:10:44.120 we showed that we had seventy percent achieved a response 0:10:44.200 --> 0:10:47.880 rate as early as day twenty eight and overall survival 0:10:49.520 --> 0:10:52.800 over a five year period seen in fifty percent of children, 0:10:53.080 --> 0:10:55.719 which is a remarkable outcome, meaning that about. 0:10:55.440 --> 0:10:57.360 Fifty percent of children are effectively cured. 0:10:57.480 --> 0:11:01.840 Wow, you know this is going to say so off 0:11:01.880 --> 0:11:05.160 taste a little bit because when you talk about market 0:11:05.480 --> 0:11:08.160 size of a potential drug or development, if you have 0:11:08.200 --> 0:11:10.800 a child who has this, having one as a market 0:11:10.840 --> 0:11:13.600 size is enough right to have a development like this 0:11:13.640 --> 0:11:16.760 because it's a game changer potentially. But having said that, 0:11:16.840 --> 0:11:20.680 you know you are a publicly held company, you're a 0:11:20.720 --> 0:11:25.520 small cap company or a smaller market cap company, and 0:11:25.559 --> 0:11:27.480 I do wonder about the run up what is the 0:11:27.480 --> 0:11:30.160 potential market size for a drug, this particular drug. 0:11:30.679 --> 0:11:33.840 So this is the first indication for this particular drug. 0:11:34.600 --> 0:11:37.840 It has many applications and we will be developing it 0:11:37.960 --> 0:11:43.760 for other adult indications. Fundamentally, it addresses major inflammatory. 0:11:43.120 --> 0:11:45.800 Diseases, which is so many diseases. 0:11:45.480 --> 0:11:50.000 Many diseases right, inflammatory lung disease, inflammatory vowel disease like chrohns, 0:11:50.040 --> 0:11:51.000 and ulstrip of colitis. 0:11:51.920 --> 0:11:52.880 And that's adults. 0:11:52.920 --> 0:11:55.920 There are many pediatric inflammatory diseases that are not well 0:11:56.160 --> 0:11:59.520 addressed either. So this is the first of its kind. 0:12:00.240 --> 0:12:04.839 It's taken a number of years. We've now demonstrated that 0:12:05.400 --> 0:12:07.679 we understand what the FDA is looking for in terms 0:12:07.679 --> 0:12:12.559 of regulatory milestones, in terms of manufacturing, in terms of consistency, 0:12:13.280 --> 0:12:15.880 in terms of reproducibility, so that we can now show 0:12:15.920 --> 0:12:18.719 that every vial that goes out is the same as 0:12:18.720 --> 0:12:21.480 the one before. And so we have a product that 0:12:21.520 --> 0:12:25.000 we can show that it's effective and it's safe, and 0:12:25.040 --> 0:12:27.800 it's reproducible, and I think that has a fundamental value 0:12:27.800 --> 0:12:30.600 proposition and that's why we're the first to have been approved. 0:12:30.679 --> 0:12:33.040 So how does it work? What were you able to find? 0:12:33.080 --> 0:12:36.839 What did you and the team discover that makes this work. 0:12:37.200 --> 0:12:43.319 So inflammation is caused by many path pathways, of the 0:12:43.360 --> 0:12:48.559 immune system, and traditional medicines small molecules and monoclonal antibodies 0:12:48.800 --> 0:12:52.600 target individual pathways, and that's why they're not really very 0:12:52.679 --> 0:12:57.920 effective at turning off severe inflammation. And COVID Odds, for example, 0:12:58.040 --> 0:13:04.360 was an example of severe inflammametry cytokine storm. And what 0:13:04.400 --> 0:13:07.480 we've shown is that our cells, which are living packages 0:13:07.559 --> 0:13:14.240 of multiple factors that orchestrate an anti inflammatory response, are 0:13:14.240 --> 0:13:18.120 able to turn off a multi pronged immune response in 0:13:18.160 --> 0:13:20.760 a way that small molecules cannot. And that's why we 0:13:21.120 --> 0:13:25.000 achieved such a significant outcome in these children who otherwise have. 0:13:24.960 --> 0:13:26.120 A fatal disorder. 0:13:27.000 --> 0:13:30.200 But that is the mechanism by which these cells generally 0:13:30.559 --> 0:13:32.200 will act in these other diseases. 0:13:32.240 --> 0:13:35.600 So it's a tip of the iceberg for us. 0:13:36.320 --> 0:13:39.719 This product is of course it's life saving, but it's 0:13:39.760 --> 0:13:43.839 also a has a halo effect because it demonstrates that 0:13:43.920 --> 0:13:47.400 the FDA is working with us, understands that we understand 0:13:47.440 --> 0:13:50.800 the mechanism and that we can rise to a threshold 0:13:51.640 --> 0:13:55.000 as a benchmark if you like, for how cell therapies 0:13:55.040 --> 0:13:59.560 need to be developed, manufactured, and ultimately brought to the market. 0:14:00.000 --> 0:14:03.120 So the market opportunities are very large you mentioned earlier 0:14:03.240 --> 0:14:05.200 that so easily. 0:14:05.000 --> 0:14:07.000 You are assuming or guessing that it's going to be 0:14:07.000 --> 0:14:08.439 a billion dollar plus drug. 0:14:08.520 --> 0:14:12.120 For this indication. Yes, definitely, just for this indication, just 0:14:12.160 --> 0:14:12.840 for this indication. 0:14:13.000 --> 0:14:17.200 But we have Phase three assets now that either have 0:14:17.320 --> 0:14:21.160 completed or incompletion for kativascuar disease and inflammatory back pain, 0:14:21.440 --> 0:14:23.520 and those have multi billion dollar potential. 0:14:23.720 --> 0:14:26.240 It's interesting because I actually have a sister who's been involved. 0:14:26.320 --> 0:14:28.400 She's a nurse and she's an engineer, and she's been 0:14:28.440 --> 0:14:31.000 involved in the world of cancer for a long time, 0:14:31.040 --> 0:14:33.880 and increasingly the conversations I have with her is, you know, 0:14:33.920 --> 0:14:38.200 how we are finding out that inflammation causes so much, 0:14:38.200 --> 0:14:41.640 whether it's cancer or otherwise, right, so much that ails us. 0:14:41.880 --> 0:14:44.360 Having said that, I'm curious when you're dealing with stem cells, 0:14:45.280 --> 0:14:48.240 any boddy stem cells are used to create this, like, 0:14:48.320 --> 0:14:50.440 how is it actually made? And I'm just curious, does 0:14:50.480 --> 0:14:53.680 each drug have to be very specific to the individual 0:14:53.760 --> 0:14:55.040 using their own stem cells? 0:14:55.120 --> 0:14:58.000 This is a very important question that you're wise now. Actually, 0:14:58.040 --> 0:14:59.920 these are unique type of cells they called the miss 0:15:00.000 --> 0:15:03.000 ankam or stromal cells that have a unique property that 0:15:03.000 --> 0:15:08.480 they're not recognized as foreign when they're treated from one 0:15:08.480 --> 0:15:11.720 individual to another, and they have the other very important 0:15:11.800 --> 0:15:15.240 characteristics that can be expanded in very large numbers through 0:15:15.280 --> 0:15:18.640 the culture manufacturing process. So we start with a tiny 0:15:18.720 --> 0:15:22.800 number of very highly purified concentrated cells from a given 0:15:22.880 --> 0:15:29.000 donor an FDA approved donor screening program. Would that be 0:15:29.040 --> 0:15:31.640 an embryo, No, no, no, these are all adults out. 0:15:31.920 --> 0:15:34.880 This is from young healthy, eighteen to twenty four year 0:15:34.880 --> 0:15:38.600 old adults screened. We take a little bit of their 0:15:38.600 --> 0:15:42.840 bone marrow and isolate these cells, purify them, and then 0:15:42.920 --> 0:15:47.480 under GMP good manufacturing Practice facilities, we manufacture them. We 0:15:47.520 --> 0:15:51.840 scale them up, and we can we can make thousands 0:15:51.880 --> 0:15:56.720 of therapeutic doses from one donation. They're frozen, their cry preserved, 0:15:57.520 --> 0:16:01.320 and as through a supply chain, we we ship them 0:16:01.360 --> 0:16:05.840 from the manufacturing site to to a distributor that that 0:16:06.000 --> 0:16:09.560 warehouses them effectively at at minus one hundred and forty 0:16:09.560 --> 0:16:13.520 degrees and they shipped to the hospital and the rejection 0:16:13.800 --> 0:16:17.120 there's no there's no rejection is there's there's minimal side 0:16:17.120 --> 0:16:22.640 effects if any, very safe, very effective, and they they're 0:16:22.920 --> 0:16:27.480 an industrial way of making therapeutic stem cells in a 0:16:27.560 --> 0:16:30.280 vial where every vial is exactly the same as the 0:16:30.360 --> 0:16:32.440 vial before, and we can we can show it's the same, 0:16:32.480 --> 0:16:35.880 it's potent. We have potency essays that that allow us 0:16:35.880 --> 0:16:40.080 to quality control every every vial that goes out the door. 0:16:40.120 --> 0:16:43.800 How do you find the donors, young healthy volunteers. We 0:16:43.880 --> 0:16:47.720 screen them for any any potential Is there. 0:16:47.640 --> 0:16:51.320 Is there any sort of when you're doing this for 0:16:51.480 --> 0:16:54.520 a for profit company, Is there any sort of compensation 0:16:54.600 --> 0:16:56.360 that they get or is that not allowed? 0:16:56.800 --> 0:16:59.080 No, it is allowed. It's totally allowed, and they do 0:16:59.160 --> 0:17:04.600 get compensations. They're fairly compensated, no different than many other 0:17:04.640 --> 0:17:09.600 blood products that are also donated, plasma derived products, et cetera. 0:17:09.720 --> 0:17:11.120 What is this drove cast. 0:17:11.520 --> 0:17:14.199 Well, you know, we only got approval a couple of 0:17:14.200 --> 0:17:16.159 weeks ago, so we're right in the process of working 0:17:16.200 --> 0:17:16.880 with all the rest. 0:17:18.080 --> 0:17:19.320 I'm sure you have looked at this. 0:17:19.480 --> 0:17:19.720 Yeah. 0:17:19.760 --> 0:17:21.600 Look, the way to look at this is there are 0:17:21.600 --> 0:17:23.880 a number of gene therapies that have recently been approved. 0:17:24.640 --> 0:17:29.040 Those gene therapies give you at best fifty percent cure rates. 0:17:29.680 --> 0:17:32.960 We've now done five years survival studies and the children 0:17:33.000 --> 0:17:34.640 from our face retroth then we get about a fifty 0:17:34.680 --> 0:17:39.280 percent complete response and survival out to five years, which 0:17:39.320 --> 0:17:42.080 effectively means currerates. So I would say that we're in 0:17:42.119 --> 0:17:45.080 the same sort of ballpark as the gene therapy. 0:17:44.960 --> 0:17:46.880 Which is why this is no judgment. 0:17:47.400 --> 0:17:48.040 We have no idea. 0:17:49.040 --> 0:17:50.520 It's liked to understand. 0:17:50.760 --> 0:17:53.800 I'll look at this in a different way. We save 0:17:53.960 --> 0:17:58.960 hospitals about a million dollars in effectiveness of what they 0:17:58.960 --> 0:18:01.080 have to spend on patients in the intensive care unit. 0:18:01.119 --> 0:18:05.200 And that's, you know, putting it in a very calculated way. 0:18:05.320 --> 0:18:07.960 It's separately from the fact that we're saving children's lives. 0:18:08.240 --> 0:18:09.720 So when you look at it that way, I think 0:18:10.160 --> 0:18:12.399 if you save a million dollars in healthcare, then you 0:18:12.440 --> 0:18:14.560 can justify pricing in that order of. 0:18:14.480 --> 0:18:16.919 Magnize around a round a million dollars. 0:18:17.359 --> 0:18:20.359 We haven't yet gotten those prices, but we're in discussions 0:18:20.359 --> 0:18:21.600 with various payers. 0:18:21.280 --> 0:18:23.879 Because gene therapy treatments can cost between hundreds of thousands 0:18:23.920 --> 0:18:26.800 of dollars and several million dollars per treatment. This isn't judgy, 0:18:26.840 --> 0:18:29.680 it's just like trying to understand the marketplace. And again, 0:18:29.720 --> 0:18:31.280 if I have a child and. 0:18:31.200 --> 0:18:34.120 It's the cost doesn't matter, it doesn't matter. 0:18:34.200 --> 0:18:38.480 I would expect this all costs incurred for this treatment 0:18:38.520 --> 0:18:41.400 for this disease are going to be reimbursed by all 0:18:41.400 --> 0:18:42.080 the major. 0:18:41.840 --> 0:18:43.399 Healthcare right absolutely. 0:18:43.680 --> 0:18:44.360 How do you know that? 0:18:44.960 --> 0:18:50.199 We've had already multiple conversations with all the major insurers 0:18:50.520 --> 0:18:53.920 and we've been welcomed. The data supports what I'm saying. 0:18:54.080 --> 0:18:57.159 FDA approval obviously a huge deal. But what about outside 0:18:57.200 --> 0:18:58.159 the US. 0:18:58.560 --> 0:19:01.200 Well, you already have a partnership in Japan. 0:19:01.359 --> 0:19:04.920 This similar product to this has been already in use 0:19:04.960 --> 0:19:09.040 for the last five years. It's safe, it's effective, it 0:19:09.119 --> 0:19:14.960 generates a sustainable revenue stream. Beyond Japan, we will be 0:19:15.040 --> 0:19:17.520 looking at Europe in due course, but our primary focus 0:19:17.560 --> 0:19:19.480 is the US without without doubt. 0:19:19.359 --> 0:19:22.720 Just real quickly, So I don't know, take me six months, 0:19:22.760 --> 0:19:26.960 twelve months, three years, what might this replace as a 0:19:27.040 --> 0:19:29.480 current treatment for whatever ailments? 0:19:29.520 --> 0:19:29.600 Like? 0:19:29.600 --> 0:19:30.680 How are you thinking about it? 0:19:30.800 --> 0:19:33.640 So for this disease, gevisual are there are no approved. 0:19:33.320 --> 0:19:35.280 Treatments for each other as you branch out. 0:19:35.160 --> 0:19:39.199 So other two big areas that we're focusing on our 0:19:39.280 --> 0:19:43.320 inflammatory disease and heart failure. OK, And we've completed a 0:19:43.400 --> 0:19:46.120 large face retrial of more than five hundred patients published 0:19:46.119 --> 0:19:49.119 in some major Kadiovasca journals, and what we've shown is 0:19:49.920 --> 0:19:53.960 surprisingly an eighty to ninety percent reduction over a three 0:19:54.080 --> 0:19:57.960 year period in heart attacks and strokes and mortality in 0:19:58.040 --> 0:20:00.879 patients who have the highest risk for those actors, on 0:20:01.000 --> 0:20:03.639 top of already taking all the various drugs that are 0:20:03.640 --> 0:20:08.960 available for heart failure. In addition, we've also recently published 0:20:08.960 --> 0:20:12.159 the study and Children with Congenital Heart Disease, where a 0:20:12.200 --> 0:20:15.800 single injection of ourselves into the left entricle has has 0:20:16.080 --> 0:20:19.200 almost doubled the size of the left ventricle, which allows 0:20:19.200 --> 0:20:22.800 the surgeon a whole different approach to an outcome. 0:20:22.920 --> 0:20:24.520 Stay in touch. We'd love to hear more. 0:20:25.200 --> 0:20:26.479 Thank you very for having me. 0:20:26.680 --> 0:20:30.280 Doctor Sylvie Etesk, chief executive Officer Managing director of Miso 0:20:30.359 --> 0:20:33.160 Blast joining us right here in studios. You are listening 0:20:33.240 --> 0:20:34.359 to Bloomberg Business Week. 0:20:35.040 --> 0:20:38.400 You are listening to the Bloomberg Business Week podcast. Catch 0:20:38.480 --> 0:20:41.719 us live weekday afternoons from two to five pm Eastern 0:20:41.880 --> 0:20:44.359 Listen on Apple CarPlay and the Android Auto with the 0:20:44.359 --> 0:20:48.520 Bloomberg Business app, or watch us live on YouTube. 0:20:50.520 --> 0:20:52.560 Marcle, I'll bet you let me drive. 0:20:52.800 --> 0:20:57.880