International Stem Cell Corp., a biotechnology company focused on therapeutic and biomedical products using human parthenogenetic stem cells (hpSCs), announced its financial results for the three and twelve months ended December 31, 2012.
FY 2012 Highlights:
• Made significant progress in Parkinson’s program including the development of a new highly-efficient manufacturing method for generating neuronal cells and conducted preliminary toxicology and pharmacology studies in animals.
• Added world-recognized neurobiologist, Dr. Evan Y. Snyder, head of the FDA’s Cellular, Tissue and Gene Therapies Advisory Committee, Director of the Stem Cells and Regenerative Biology Program at Sanford Burnham Medical Research Institute, as an non-compensated member of our Board of Advisors.
• Expanded stem cell bank to a total of fifteen human lines by adding three new cGMP-grade stem cell lines, derived in the ISCO’s California facility, capable of immune-matching millions of individuals.
• Developed a new protein-based technology to derive iPS cells without the use of viruses as in traditional methods.
• Received a key patent issued by the USPTO covering the creation of liver and pancreas precursor cells. Performed hybrid toxicology/pharmacology study in a rodent model of Crigler-Najjar disease.
• Progressed the Cornea program by the development of endothelial-like cells for 3D corneal structures as part of our Indian collaboration.
• Realized 14% increase in sales in Lifeline Cell Technologies to $2.38 million for 2012.
• Significantly expanded marketing activities, brand awareness, diversified sales channels and launched new eye firming serum in Lifeline Skin Care, all of which lead to higher sales in second half of the year.
• Raised $7.03 million and reduced G&A expenses by 11% compared with 2011.
Fourth quarter revenue was reported at $1.25 million compared to $1.06 million for the same period in 2011. Sales for Lifeline Skin Care (LSC) and Lifeline Cell Technology (LCT) increased by 39% and 3%, respectively. According to today’s press release, LSC and LCT accounted for 48% and 52% of total revenue in the three months ended December 31, 2012.
Development expenses were down by 8% to $3.65 million. The company attributed the decrease to reductions in cost of sales and consulting expenses relating to its research and development projects, partially offset by an increase in sales and marketing spending. General and administrative expenses totaled $1.89 million, reflecting relatively constant expense compared to the prior year.
Sales for the entire year of 2012 were $4.57 million compared to $4.53 million in 2011. LCT sales totaled $2.38 million, up 14% from 2011, representing a little over half of total revenue in 2012. LSC revenues were $2.19 million compared to $2.45 million in 2011.
Cost of sales totaled $1.27 million, or 28% of revenue, compared to $1.62 million, or 36% of revenue, a year earlier. The company added efficiencies to its manufacturing and supply chain management for both LSC and LCT.
Net loss from development activities was $9.81 million, compared to $11.36 million in 2011, a 14% reduction primarily due to favorable reductions in cost of sales, research and development expenses, and general and administrative costs.
“We have made excellent progress in our therapeutic development programs, being able to start our non-human primate study in our Parkinson’s disease program earlier than anticipated, and report top line data at the American Academy of Neurology Annual Meeting,” commented Dr. Andrey Semechkin, ISCO’s CEO and Co-Chairman. “In addition, our results for the fourth quarter reflect good progress by LSC and LCT both in terms of growing sales and implementing their strategies. Particularly pleasing is LSC’s continued quarterly revenue growth as they aim to diversify their sales channels, and LCT’s strong annual results. General and administrative expenses continued to decrease reflecting our increased focus on cost containment. Looking ahead to the next twelve months, we anticipate our R&D expenses to increase as we expand our pharmacology and safety studies and our Parkinson’s program moves closer to our targeted IND filing in early 2014.”
Conference Call and Webcast Details
Date: Thursday, March 28, 2013
Time: 11:00 a.m. Eastern Time
Conference Call Dial-in Numbers
Participants from US Domestic: 1-877-941-2068
Participants from International: 1-480-629-9712
Conference ID: 4610666
Webcast link: http://public.viavid.com/player/index.php?id=104040
The company encourages participants to log into the call 10 minutes prior to the start time.
For more information, visit www.internationalstemcell.com
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