3D Systems inventory climbed 41% this week – and increased other 3D printing inventory
3d systems (NYSE: DDD) The share climbed 40.6% this week, thanks to the company announcing Tuesday of a new bioprinting collaboration with an Israeli regenerative and aesthetic medicine company CollPlant Biotechnologies (NASDAQ: CLGN) “Provide bio-printed solutions for better breast reconstruction treatments.” ”
The great popularity of 3D Systems stock has raised other 3D printing stocks, as frequently happens in any industry or space. Here’s what investors need to know.
New 3D Systems collaboration in 3D bioprinting with CollPlant
3D Systems stock rose 27.7% on Tuesday after the company announced its new 3D bioprinting partnership with CollPlant, and it continued to advance throughout the week. Many investors likely view this move as suggesting that future collaborations in the same field could follow if this one is successful.
Both partners plan to use bioprinting to produce a soft tissue matrix that will be used in combination with an implant for breast reconstruction purposes. The matrix will support the lower part of the breast and will be imprinted with bio-inks based on CollPlant’s proprietary herbal recombinant human collagen (rhCollagen), which promotes tissue regeneration.
Companies believe their bio-printed dies will have several benefits. These include being customizable to the patient’s anatomy and possessing superior consistency and safety “due to their plant origin and identical correspondence with natural human collagen”.
CollPlant stock rose 12.6% on Tuesday’s news, but gave up most of its gain at the end of the week. Stocks rose only 1% for the week.
Stratasys, ExOne, Nano Dimension and Proto Labs stocks were also big weekly winners
Stratasys (NASDAQ: SSYS) and Proto labs (NYSE: PRLB) shares rose 22.5% and 12.3%, respectively, for the week. The fact that these actions were spurred on by the news of 3D Systems’ bioprinting is explainable, although it seemed a bit of a stretch, especially in the case of Proto Labs. If 3D Systems pushes further into the bioprinting space, it seems possible that Stratasys and Proto Labs could enter the market at some point.
Fast-moving contract manufacturer Proto Labs doesn’t make 3D printers, but it could potentially enter the bioprint market by offering bioprinting services. This type of movement seems quite remote, however, and does not seem as well suited to Proto Labs as it does to 3D Systems and Stratasys.
It does not make sense that actions of ExOne and Nano dimension achieved a considerable gain (15% and 14.2%, respectively) thanks to the news from 3D Systems. ExOne is a metal-focused industrial 3D printer manufacturer and Nano Dimension only focuses on electronics 3D printing. While anything is possible, it seems unlikely that bioprinting is suitable for either of these companies. Moreover, they are both struggling to achieve profitability from their current operations, so any kind of expansion would seem to be several years away.
Actions of Belgium Materialize, which provides 3D printing software and services, rose 2.5% this week. This was in line with the performance of the broader market, as the S&P 500 and technological Nasdaq the indices increased by about 2.8% and 2.4%, respectively.
Office metal stock was the only loser in the group. The shares, which began trading in December 2020 through a reverse merger with a special acquisition company (SPAC), fell 4.5% on the week.
In 2021, 3D Systems and ExOne shares lead the pack, up 275% and 143%, respectively, through June 25. Stratasys is far third, with a gain of 27.9%. Everyone else is not only lagging the broader market – the S&P 500 has returned 14.8% so far – but is also in negative territory.
Reports on the group’s second quarter results are expected to begin publishing in late July, with Proto Labs kicking off the season.
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