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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