With recent advancements in native tissue, Meatech (MITC) is positioned for long-term sector leadership

MeaTech (Nasdaq: MITC) is a global food technology company developing advanced biotechnology and engineering capabilities to produce slaughter-free meat which is delicious, nutritious and safer than farm-raised meat. The company’s goal is to develop a replacement for conventional steak by maximizing cell-based content rather than using non-meat ingredients. By producing cultivated meat which better mirrors the characteristics of premium farm-raised steak, MeaTech is positioning itself to benefit from growing demand for meat solutions which are healthier and more sustainable for the planet without the need to compromise on taste, texture and nutrition. Importantly, the company has made a number of announcements in recent weeks which solidify its position as a cultured meat technology leader in the sector.

Core technology validated

MeaTech recently announced that it has successfully printed a cultivated steak comprised of real, living muscle and fat tissues without any soy or pea protein. At 3.67 ounces, the company’s management believes that this is the largest cultivated steak produced to date, so it’s a significant announcement for the company and the meat sector.

It’s also an important milestone for MeaTech for a number of reasons. Firstly, it validates MeaTech’s core technology and business model which is focused upon developing a leadership position in the premium cultivated meats sector. Secondly, it provides evidence MeaTech is at the industry’s forefront in the race to develop cell-based cultivated meat products.

As with most emerging industries, the companies which develop an early leadership position in the cultivated meats industry are particularly well positioned to dominate the industry in the longer term, so MeaTech’s strong competitive positioning is potentially good news for investors. And thirdly, this milestone highlights that the company is on track to scale up production of cultivated bio-printed steaks in line with MeaTech’s commercialization plan. That means the company is one step closer to revenue generation.

A testament to the company’s growth and scaling efforts can be seen in their recent move to new headquarters in the food-tech hub of Rehovot, Israel. In Israel alone, the company grew its team by over 50% throughout the last year. The new facility will allow MeaTech to increase its R&D technology efforts and contains a tasting kitchen for cultivated developed products to be tasted.

Positive stem cell results

MeaTech also recently announced promising results from its muscle stem cell differentiation research which is at the core of the company’s novel technology process used to fuse muscle cells into significant muscle fibers which resemble those found in whole cuts of meat. The results show the company is able to accelerate the formation of real living muscle fibers while mirroring key characteristics of farm-raised meat. This is significant as it highlights MeaTech is able to cultivate matured muscle cells with the necessary fiber density, thickness, and length for the premium cultivated meat market the company is targeting. As such, it represents one more step towards production. Based upon these positive developments, MeaTech has filed a provisional patent application with the USPTO.      

Positioned for long-term sector leadership

MeaTech is positioned to become a leader in the cultivated meat sector over the longer term. The company’s recent announcements confirm its position as a food technology leader as the company prepares to transition from a development stage company into a cultivated meat producer ahead of the enormous growth trajectory expected in the cultured meat market. MeaTech’s early leadership position reflects strong competitive advantages which management will be aiming to build upon longer term. It’s a solid position to be in within a sector which is positioned for long term structural growth driven by growing environmental and ecological awareness.