Earlier this week,
Edison Investment Research, a leading independent investment intelligence firm,
commenced coverage of International Stem Cell Corp. (OTCQB: ISCO). In the
initial report, Edison gives prospective investors an in-depth look at ISCO’s
current market position, including its impending Phase I/IIa clinical trials
for the treatment of Parkinson’s disease, as well as its revenue-generating
subsidiaries, Lifeline Skin Care and Lifeline Cell Technology, which Edison
suggests ‘provide a floor under ISCO’s current valuation, creating an
essentially free option on the PD candidate’.
To view the full
report, visit http://dtn.fm/fIF6B
Leveraging its
innovative human parthenogenetic stem cell (hpSC) technology, ISCO has
developed 15 unique stem cell lines capable of functioning as a variety of cell
types, such as livers cells, neural cells and three-dimensional eye structures.
Crucially, ISCO’s groundbreaking platform enables the advancement of
regenerative medicine while avoiding the common ethical concerns that have gone
hand-in-hand with embryonic stem cells. Using a risk-adjusted net present value
methodology and taking the market potential of this technology into account,
Edison valued ISCO at $27 million, or about $9.60 per share on an undiluted
basis. While the company’s success is largely contingent on the successful
execution of its Parkinson’s disease clinical trials and its ability to attract
a licensing partner to move forward with additional testing, strong preclinical
data in primate studies highlights the promise of ISCO’s hpSC technology as the
company approaches commencement of its Phase I clinical trial in Australia.
“Promising
preclinical results support our expectation that ISC-hpNSC will bring a
long-needed solution for patients suffering from Parkinson’s disease,” Russell
Kern, PhD, executive vice president and chief scientific officer of ISCO,
stated in a news release. “The ability of our approach to replace and protect
dopaminergic neurons and restore neural function offers significant potential
benefit to patients. We look forward to preliminary clinical data in Q4 2016.”
Over the next
decade, Edison forecasts ISCO’s revenues through its cosmetic/skincare business
to grow from $3.5 million to $4.8 million, achieving a compound annual growth
rate of 3.2 percent, which is in line with forecast growth of the global
skincare market. The research firm suggests that ISCO could begin generating profits
stemming from the development of its stem cell technology by 2024, assuming the
company’s promising preclinical results hold true throughout clinical testing.
For more
information, visit www.internationalstemcell.com
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