Recently formed International Stem Cell Corp. emerged as a publicly listed company following a reverse merger and an $11.2 million financing earlier this month.
The company, which merged with a Texas-based holding company, BTHC III Inc., completed its name and stock ticker change this week. Its shares, listed on the Over-the-Counter Bulletin Board under "ISCO," closed at $3.12 Monday.
With a focus on developing therapeutics derived from human embryonic stem cells - though without tapping into the controversial firestorm surrounding the use of fertilized embryos - International Stem Cell is hoping to resolve critical problems surrounding cell transplantation, namely immune rejection and a lack of sufficient cells to treat patients. The company is in early stage development with cell therapies for treating retinal diseases, diabetes and liver disease.
Due in part to quiet period rules, International Stem Cell was not able to comment on its recent activities. Earlier this month, the company closed an $11.2 million private placement before completing the share exchange transaction to merge with BTHC. International Stem Cell's shareholders, including investors in the recent offering, exchanged shares for about 33.1 million shares of BTHC's common stock, making International Stem Cell a wholly owned subsidiary of BTHC.
The company has a subsidiary in Walkersville, Md., and international research facilities in Moscow, though its headquarters are in Oceanside, Calif., which could position the firm for potential grants stemming from California's $3 billion Stem Cell Research and Cures Initiative.
During the first half of this year, the company said it expects to move into the clinic with its first cell therapy, retinal cells derived from its human embryonic stem cell lines for patients with macular degeneration and retinitis pigmentosa. Work to date has focused on developing the production of retinal pigment epithelial (RPE) cells and photoreceptor cells for use in those early clinical studies. RPE cells have demonstrated the ability to slow the progression of retinal disease when transplanted in animals.
Behind retinal disease, the company anticipates starting similar trials in diabetes using pancreatic islet cells derived from stem cells, and after that, International Stem Cell hopes to move into liver disease.
According to its website, the company said its business strategy is to expand into the stem cell therapy field through mergers and acquisitions with other stem cell technology companies and through collaborations with laboratories around the world.
The company was founded by Kenneth Aldrich, who serves as chairman, and William Adams, who was named as chief financial officer. Jeff Krstich was appointed CEO and Jeffrey Janus, CEO of International Stem Cell's Maryland subsidiary, was named the company's president.