Cambridge spinal cord injury treatment startup InVivo Therapeutics Holdings Corp, which received a $2 million loan from MassDevelopment this week, released a letter to shareholders today expressing frustration with the companys lackluster stock performance.

Though InVivo is firing on all cylinders, the companys 50 percent stock drop since the end of August is unwarranted and seems to have been driven by unsubstantiated Internet rumors, said CEO Frank Reynolds.

We believe our stock is undervalued and has significant near-term catalysts that should drive valuation, he said.

In this years range of prices, InVivo stock has been trading between 60 cents and $3.23 a share, reaching a high today of $1.78. The company now has more than 30 employees in its new 21,000-square-foot Kendall Square headquarters.

In the letter, Reynolds added the company expects the next six months to mark a major inflection point in our growth.

The FDA has not put up any roadblocks or requested additional information that will delay the start of the study for the use of our biopolymer scaffolding to treat spinal cord injuries, he said. Before the end of 2012, we expect to validate our clean room and then manufacture GMP (Good Manufacturing Practices) batches which will be submitted to the FDA as part of the IDE application. We expect FDA approval to start the clinical study in early 2013.

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InVivo CEO: Our stock is undervalued

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