Before the opening
bell, International Stem Cell Corporation (OTCQB: ISCO) announced its operating
results for the first quarter of 2016. The company’s consolidated revenue for
the three months ended March 31 was $1.6 million, which remained unchanged from
the comparable period of 2015. ISCO continued to generate revenue through its
two wholly-owned subsidiaries, Lifeline Skin Care and Lifeline Cell Technology,
with both remaining profitable. Profit margin for the two subsidiaries was
$1.24 million, or 77 percent, for the three month period, up from $1.20
million, or 74 percent, in the previous year.
“I’m happy to report
that while revenues remained flat, profit margin improved,” Andrey Semechkin,
Ph.D., chief executive officer and co-chairman of ISCO, stated in this
morning’s news release. “In addition our therapeutic development programs are
proceeding according to plan.”
In recent months,
ISCO has continued to focus on the clinical development of its groundbreaking
human parthenogenetic stem cell-derived neural stem cells (ISC-hpNSC®) for the
treatment of moderate to severe Parkinson’s disease. In December, the company
receive authorization from the Therapeutics Goods Administration of Australia
to commence the first human study of the cells, a phase I/IIa dose escalation
trial. ISCO then entered into a clinical service agreement with the Florey
Institute of Neuroscience and Mental Health, one of the world’s leading brain
research centers, to conduct the trial.
In March, the
company took two significant steps in the development of ISC-hpNSC®, including
commencing enrollment for its impending phase I trial and raising capital with
which to fund the study through a private placement. As part of this funding
initiative, ISCO entered into definitive agreements with two institutional
healthcare investors and management for the private placement of $6.3 million
of the company’s convertible preferred stock, as well as common stock purchase
warrants for an additional $25.7 million of ISCO’s common stock. Gross proceeds
from this placement included $2.5 million in cash and conversion of $3.8
million in debt, which was owed to the company’s co-chairman and CEO.
“The recurring
investment of these healthcare focused institutional investors is in support of
and attests to the potential of our technology,” Semechkin added in a news
release announcing the private placement. “The capital raised will help to
drive our Phase 1 study of ISC-hpNSC® for the treatment of moderate to severe
Parkinson’s disease. With enrollment of patients already underway, we look
forward to the end of this year for preliminary safety and efficacy clinical
data.”
For more
information, visit www.internationalstemcell.com
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