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3D Systems Stock Soared 41% This Week — and Lifted Other 3D Printing Stocks

3D Systems (NYSE: DDD) stock soared 40.6% this week, powered by the company's Tuesday announcement of a new bioprinting collaboration with Israeli regenerative and aesthetic medicine company CollPlant Biotechnologies (NASDAQ: CLGN) "to deliver bioprinted solutions for improved breast reconstruction treatments."

The big pop in 3D Systems stock lifted other 3D printing stocks, as frequently happens in an industry or space. Here's what investors should know.

Image source: Getty Images.

3D Systems' new 3D bioprinting collaboration with CollPlant

3D Systems stock rocketed 27.7% on Tuesday following the company's announcement of its new 3D bioprinting partnership with CollPlant, and it continued to move up throughout the week. Many investors probably view this move as suggesting that future collaborations in the same realm could follow if this one is successful.

The two 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 portion of the breast and be printed with bioinks based on CollPlant's proprietary plant-based recombinant human collagen (rhCollagen), which promotes tissue regeneration.

The companies believe their bioprinted matrices will have several benefits. These include being customizable to a patient's anatomy and possessing superior consistency and safety "due to their plant origin and identical match with natural human collagen."

CollPlant stock moved up 12.6% on Tuesday's news, but gave back most of its gain by week's end. Shares were up just 1% for the week.

Data by YCharts.

Stratasys, ExOne, Nano Dimension, and Proto Labs stocks were also big weekly winners

Stratasys (NASDAQ: SSYS) and Proto Labs (NYSE: PRLB) stocks were up 22.5% and 12.3%, respectively, for the week. That these stocks got a boost from 3D Systems' bioprinting news is explicable, though it seemed somewhat overdone, especially in Proto Labs' case. If 3D Systems is pushing further into the bioprinting space, it seems possible that Stratasys and Proto Labs could enter the market at some point.

Quick-turn contract manufacturer Proto Labs doesn't make 3D printers, but it could possibly enter the bioprinting market by offering bioprinting services. This type of move seems quite far off, however, and doesn't seem as good a fit for Proto Labs as it does for 3D Systems and Stratasys.

It doesn't make good sense that shares of ExOne and Nano Dimension got a sizable lift (15% and 14.2%, respectively) from the 3D Systems' news. ExOne is a metal-focused maker of industrial 3D printers and Nano Dimension is solely focused on the 3D printing of electronics. While anything is possible, it doesn't seem likely that bioprinting will be a good fit for either of these companies. Moreover, they're both struggling to achieve profitability in their current businesses, so any type of expansion would seem many years off.

Shares of Belgium-based Materialise, which provides 3D printing services and software, rose 2.5% this week. That was in line with the broader market's return, as the S&P 500 and tech-heavy Nasdaq indexes were up about 2.8% and 2.4%, respectively.

Desktop Metal stock was the only loser of the group. Shares, which began trading in December 2020 via a reverse merger with a special acquisition company (SPAC), were down 4.5% for the week.

In 2021, 3D Systems and ExOne stocks are leading the pack, up 275% and 143%, respectively, through June 25. Stratasys is a distant third, with a 27.9% gain. All the others are not only trailing the broader market -- the S&P 500 has returned 14.8% so far -- but are also in negative territory.

Second-quarter earnings reports for the group should begin rolling out in late July, with Proto Labs kicking off the season.

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Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Proto Labs. The Motley Fool recommends 3D Systems. The Motley Fool has a disclosure policy.


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