Industry Update: Capital market and finances
Capital market and finances developments compiled from August 1— September 30 2015
Latest business developments in the field of stem cell research and
regenerative medicine compiled from publicly available information and
press releases from non-academic institutions August 1— September 30
2015, scheduled to be published in Volume 11 Issue 1 of Regenerative
Medicine.
BioTime
BioTime (CA, USA; www.biotimeinc.com) has agreed to sell 2,607,401 of its common shares, no par value, at an offering price of US$ 3.29 per share, for a gross purchase price of approximately US$ 8.58 million, to selected investors, including a major shareholder, Broadwood Partners (NY, USA), in a registered direct offering.
BioTime also announced that it has agreed to sell up to US$ 20.7 million of its common shares in a registered direct offering to select investment funds in Israel that hold shares of companies that are included within certain stock indexes of the Tel Aviv Stock Exchange (TASE; www.tase.co.il/eng/pages/homepage.aspx). The price per share will be determined with reference to the closing price of BioTime common shares on the TASE on the trading day immediately preceding the first day on which BioTime common shares enter the TASE stock indexes.
Catapult and Cellular Therapeutics Limited
The Cell Therapy Catapult (UK; https://ct.catapult.org.uk) has awarded a manufacturing contract to the Manchester-based company Cellular Therapeutics Limited (www.cellulartherapeutics.co.uk), to accelerate its clinical program to develop an engineered T cell treatment for blood cancers such as acute myeloid leukemia and myelodysplastic syndrome. The contract will run for the next 2-3 years, supporting the current Phase I and II trials which involves the genetic modification of the patient’s own T cells, so that they may recognize and destroy WT1-expressing cancer cells when infused back into the body.
Cesca
Cesca Therapeutics (CA, USA; www.cescatherapeutics.com) has undertaken a restructuring initiative geared towards reducing costs associated with its traditional cord blood banking business and further aligning available resources behind the Company’s high impact clinical programs, including the Phase III pivotal clinical trial for no option critical limb ischemia patients, recently approved by the FDA. The restructuring resulted in a reduction of approximately 15 positions in various functions. This action, combined with the elimination of a number of open positions that will not be back-filled, is expected to reduce annual operating costs primarily in the cord blood banking business by approximately US$ 3.3 Million.
Newcells
Newcastle University spin out startup Newcells Biotech (www.newcellsbiotech.co.uk) secured funding to pursue discovery of new medicines. The company was founded on the iPSC technology and has landed a six-figure investment from Northstar Ventures (UK; www.northstarventures.co.uk) to build a provision of products and services for drug discovery and development to target pharmaceutical, biotechnology and academic customers.
Ocata
Ocata Therapeutics (MA, USA; www.ocata.com) has been awarded a Small Business Innovation Research (SBIR) Phase 1 grant from the National Institute of Allergy and Infectious Diseases (www.niaid.nih.gov), part of the National Institutes of Health (NIH), to fund further preclinical development of Ocata’s proprietary Hemangio-derived Mesenchymal Cell (HMCâ„¢) product for the treatment of systemic lupus erythematosus and lupus nephritis.
In an unrelated press release, Ocata announced that has entered into a secured term loan facility of up to US$10 million with Silicon Valley Bank (CA, USA; www.svb.com). Ocata received initial funding of US$ 6 million and has a conditional option to receive an additional US$ 4 million upon the successful completion of certain clinical and corporate milestones. Ocata intends to use the proceeds for general corporate purposes including the initiation of the Phase 2 dry AMD and pivotal Stargardt’s macular degeneration clinical studies and the advancement of its promising pre-clinical programs.