StemCells pushing forward its SC Proven cell culture product business

Sep 23 2009

StemCells, Inc. (NASDAQ:STEM) today announced organizational initiatives focused on growing its specialty SC Proven^® cell culture product business and advancing the development and commercialization of its central nervous system (CNS) cell-based assay platforms for use in drug screening and drug development. These initiatives reflect the Company’s ongoing integration of the operations acquired from Stem Cell Sciences (SCS) Plc in April, and include new personnel appointments and a realignment of activities within the Company’s Cambridge, UK and Palo Alto, California locations.

“The acquisition of the SCS operations solidifies our leadership position in the neural cell field and provides us with nearer-term commercial opportunities through non-therapeutic applications of our combined cell-based technology platforms,” said Martin McGlynn, President and CEO of StemCells, Inc. “The actions we are now taking will centralize and focus specific platforms and personnel at specific sites to more effectively leverage our various capabilities. By aligning the appropriate expertise and resources, these initiatives will better position us to execute this strategic agenda and to realize the growth potential of our cell-based enabling technologies.”

The Company is leveraging multiple stem cell technology platforms that include embryonic stem cells, induced pluripotent stem cells and tissue-derived (adult) stem cells. StemCells will refocus and add to its research and development of cell-based assays, and better align those efforts with its scale-up and manufacturing of cells and assays for drug screening and drug development, including using its automated cell culture platform that enables large-scale production for medium-throughput screening of drug candidates.

StemCells is also investing to grow its revenue-generating SC Proven cell culture product business. Sales of SC Proven products have grown rapidly in 2009 compared to the same period in 2008. StemCells will seek to continue expanding this business by focusing on increasing penetration into the growing U.S. stem cell research market, as well as broadening its portfolio of cell culture products through the development and acquisition of new products. Development and manufacturing of SC Proven products will continue to be based in the Company’s Cambridge, UK location.

As part of its efforts to streamline operations post-acquisition, StemCells recently completed a wind-down of Stem Cell Sciences’ operations in Melbourne, Australia, and has transferred the scientific programs previously underway in Melbourne to Palo Alto and Cambridge.