International Stem Cell Corporation - Excerpt from Agora Financial's Breakthrough Technology Alert by Patrick Cox

The following is an excerpt from the June 29, 2010 Breakthrough Technology Alert, published by Agora Financial. Agora Financial is a fully independent publisher and has no financial connections to companies listed below. Breakthrough Technology Alert’s editor is industry expert Patrick Cox. Patrick is renowned for his innovative forecasts and keeping readers “ahead of the story”.



For more information about Patrick Cox and Breakthrough Technology Alert please visit www.agorafinancial.com





Q&A with ISCO



International Stem Cell Corp. (OTCBB: ISCO) has also been the target of rumor campaigns. ISCO, incidentally, recently announced further positive IP news. Specifically, Advanced Cell Technology, Inc. (ACT) was just issued U.S. Patent Number 7736896 covering a method for producing retinal pigment epithelial cells. ISCO, however, had previously acquired rights to this technology from ACT, so the award solidifies their position in stem cell eye therapies.



ISCO's corneal research also got an unexpected boost last week, though it's not clear how many people know it yet. A stem cell breakthrough from Italy made quite a few headlines. The article that provoked the coverage was in the June 23 online version of The New England Journal of Medicine (NEJM). Specifically, it featured clinical research from professor Graziella Pellegrini et al. titled "Limbal Stem-Cell Therapy and Long-Term Corneal Regeneration." A helpful video by ABC News can be viewed here.



The coverage of the journal article is, however, incomplete. So let me put it in perspective.

The procedure made use of the well-established practice of extracting and cultivating limbal stem cells. Each of the patients, in effect, had stem cells removed from at least one eye. Once the adult stem cells were multiplied in the lab, they were applied to the cornea. There, they regenerated the corneal epithelium (the outermost thin layer of the cornea), restoring sight.



This is wonderful proof of the power of stem cells, but it doesn't represent a breakthrough in terms of basic science or investment possibilities. This is because the cost of extracting these surviving stem cells is very high. So is multiplying and reattaching them. The only reason the experiments were even allowed to proceed is that all the cell materials come from the subjects of the procedures. They would not have been allowed if, for example, scientists wanted to use the stem cells from one patient to treat another patient. Nor is it clear to what extent, if any, a company can patent these procedures.



On the other hand, the Italian procedures were most successful when they were combined with the implantation of replacement corneal structures. Those replacement corneas cannot be regenerated from limbal stem cells. In fact, they came from cadavers.



ISCO, however, is now able to grow them in the lab to produce cheaper, safer corneas. ISCO is involved in discussions with various companies to commercialize those parthenogenic corneal structures.



For most patients, who have enough of their own stem cells to regenerate the corneal epithelium, ISCO's corneas are all that are required to recover sight. Eventually, in fact, I suspect that ISCO will also have off-the-shelf limbal stem cells that will regenerate the corneal epithelial too. These cells would be from each of ISCO's cell bank lines. Now being established, it will include 50-100 cell lines that immune match most of the world's population. No other company has this ability to provide inexpensive stem cells for the masses.



Now allow me to debunk some of the rumors currently being spread about ISCO. Normally, as you know, I don't like to dignify these attacks, but I do make exceptions when it's important. I'm doing this, by the way, in a question-and-answer format that board chairman Ken Aldrich was kind enough to answer. The questions deal with some of the unfounded rumors circulating. If these don't concern you, feel free to skip them. Q1. Did ISCO close its financing?



A1. Yes, they did a $10 million financing, and then used $2.5 million as part of a balance sheet cleanup that removed approximately $15 million of 10% preferred stock and still left them with an additional $7.5 million in cash on the balance sheet, in addition to whatever cash was already there.



Q2. Doesn't Socius hold a lot of preferred stock that will be a future burden to ISCO?



A2. No, all of that has been retired as part of the capital restructuring announced in an 8-K filed June 11, 2010. As a result, Socius and its predecessor company, Optimus, hold no preferred shares of ISCO at all.



Q3. Is the company running out of money?



A3. Based on the monthly "burn" rate of about $550,000 for the last 15 months ($562,000 for the last quarter), the proceeds of the company's most recent financing of $7.5 million after the repayment of the outstanding preferred stock of Socius and Optimus would give the company at least 12 months of "runway," even without any additional revenues from operations, licensing or partnerships.



I could go on, but this is pretty long. Next week, I'll have more updates.



For transformational profits,

Patrick Cox



To learn more about Patrick Cox and Breakthrough Technology Alert please click here. © 2010 by Agora Financial, LLC. 808 St. Paul Street, Baltimore, MD 21202. All rights reserved. No part of this report may be reproduced by any means or for any reason without the consent of the publisher. The information contained herein is obtained from sources believed to be reliable; however, its accuracy cannot be guaranteed.

Agora Financial Article - Lightbridge Announces Enormous Nuclear Energy Breakthrough by Patrick Cox

The attached article appeared recently in an independent journal, Agora Financial (agorafinancial.com) and we thought you would be interested. The author, Patrick Cox, is a very astute follower of the regenerative medicine field.


Dear Breakthrough Technology Reader,

It has been another historic week both for science and investors in breakthrough technologies. If you've getting the impression that things are accelerating, you are right.

Lightbridge Corp. (NASDAQ: LTBR) announced one of the biggest breakthroughs in nuclear power generation in decades. Essentially, Lightbridge has discovered a way to increase the yield of conventional nuclear power plants by 30%. This is, to use the cliche, a "game changer." It puts the cost of nuclear power on par with coal and natural gas-powered electrical power generation.

This is an absolutely stunning development, especially in the context of the worsening oil spill and the utterly insane political environment. Behind the scenes, by the way, the world's experts on oil spills and wetlands protection are aghast at the incompetence of the U.S. government. If I were a BP stockholder, I'd be thinking about suing the USA for unnecessarily increasing cleanup costs. I'll refrain from venting about the consequences of putting a bunch of utopian law professors in charge of our country, but I will link to an article in Canada'sFinancial Post.

That article is aptly titled "Avertible Catastrophe" and reflects the views of other engineers I've talked to about the spill. The Dutch, as you can read in the article, are indeed the world's unrivaled experts in this area. I've know this for years because I've researched issues related to the Everglades. The Dutch, with 20% of their country below sea level, are the undisputed leaders in wetlands science.

The American administration decided early on, however, to take a unilateral approach to this global environmental catastrophe. When offered help from the Netherlands only days into the spill, the geniuses in Washington, D.C., rejected the help because, apparently, it would have irritated American labor unions.

Regardless, I'd much rather dwell on the bigger and better news of the Lightbridge breakthrough. You'll notice, if you read their press release, that the company uses the word "transformational." They're not exaggerating.

I think that the best way to grasp the impact of this breakthrough is to imagine that we could increase the gas mileage of every car in the world by a third using a simple technological tweak. The Lightbridge breakthrough will, in fact, have a significant impact on the rate of U.S. and global economic growth.

I'll include the URL for the Lightbridge press release here, but you'll have to wait a week to get more details and the inside story. My colleague Ray Blanco and I spoke at length to Lightbridge CEO Seth Grae. Ray has written an overview of this dramatic development with plenty of information available no place else. I'll give that to you next week. We also have the transcript of the Seth Grae interview, which I'll try to find a way to make accessible to you.

RXi Targets Scarring for Early Profits

This week, however, I really need to bring you up-to-date with developments with a number of our other companies. First, I want to tell you some really good news about RXi Pharmaceuticals Corp. (NASDAQ: RXII).

As you know, RNA interference (RNAi) has delivered to humanity the control of gene expression. Using the RNAi mechanism, it is possible to turn genes on or off, increasing or decreasing the proteins that cause and cure almost every disease.

RNAi, however, is incredibly young and is still in the sorting-out stage. The big initial delivery problem, getting RNA interfering sequences past the body's defenses, is being cracked, however. I have no doubt that progress will continue to accelerate.

It was this confidence that led me, early on, to add the most important RNAi players to our portfolio. Now, we're seeing them develop real business strategies. This week, I'd like to brief you on a conversation I had with RXi's CEO and president, Noah Beerman. As background, I would remind you that quite recently, RXi announced successful delivery of their self-delivering rxRNA (sd-rxRNA) to dermal or skin targets.

Now we know why. The massive market for an anti-scarring drug is in RXi's sights. This is, in effect, a low-hanging fruit in the RNAi orchard. Because the skin is easily accessible, topical drug delivery mechanisms can be exploited. This not only simplifies application and delivery, it makes the drug more attractive both to doctors and patients.

According to RXi's estimates, the market for an anti-scarring product approaches $4 billion annually. This includes routine surgeries, but extends to burn and skin disease victims. I'm enormously pleased that the company has focused on a therapy that could come to market within a few years. It is exactly what this developing science needs to get it past the current downturn.

Though I really should give this topic more space, I'm going to keep this short and promise you more later. Today, I'll just excerpt a few important paragraphs from the company's press release:

Core Focus: RXi will focus its internal therapeutic development efforts in two main areas:

1. In the area of dermatology, RXi is pursuing a program in anti-scarring. Anti-scarring is an attractive therapeutic indication with clear development precedent and limited competition for effective therapies. The company estimates that the U.S. potential market for skin scarring is up to $4 billion, with approximately 42 million skin-scarring surgical procedures annually. RXi's sd-rxRNA (self-delivering rxRNA) compounds have shown robust delivery and effective target silencing in skin using local administration. The company intends to select an anti-scarring development candidate in 2010 and file an IND in 2011. RXi's success with RNAi therapeutics in anti-scarring may provide additional opportunities in other dermatology applications as well as in anti-fibrotic indications including pulmonary fibrosis, liver fibrosis, acute spinal cord injury, ocular scarring and restenosis, which together encompass a potential market size of more than $16 billion.
   
2. In the area of ophthalmology, RXi is moving forward with a program in retinal disorders. There are multiple retinal diseases with large unmet medical need that are not addressed with currently available therapies. These diseases include wet and dry age-related macular degeneration, diabetic retinopathy and diabetic macular edema, which together affect approximately 18 million people in the U.S., and which have an estimated market potential of up to $20 billion. RXi has shown data demonstrating unprecedented delivery and effective target silencing in the retina with sd-rxRNA compounds. By coupling its unique technology with existing and novel targets, and potentially multiple targets, the company believes it has the potential to develop next-generation treatments for retinal disorders. Further, the company believes that there is opportunity to potentially improve on existing therapies, extend the time required between doses and utilize new modes of administration for delivery to the eye. The company intends to select a retinal disorder development candidate in 2011.

Strategic Interest: RXi will explore additional indications through preclinical development that are of strategic interest to the company and may provide partnership opportunities.

1. In the area of neurology, RXi is exploring indications accessible by spinal cord delivery of sd-rxRNA. Direct dosing to the spinal cord could be used for severe central nervous system or spinal cord diseases in both orphan and nonorphan indications, both of which have multibillion-dollar markets. RXi may also be able to leverage early proof-of-concept studies and collaborations to advance programs in this area. The company intends to advance potential candidates through preclinical studies as well as seek partners to help support further development.
   
2. In the area of oncology, RXi will be concentrating initially on liver metastases and hepatocellular carcinoma using systemic delivery of sd-rxRNA or rxRNA compounds in combination with delivery vehicles. These two disease areas of high unmet need have a U.S. market potential of up to $3.2 billion and $800 million, respectively. With the ability to develop compounds against novel and multiple gene targets with a single treatment, RNAi has increasing potential in oncology given the emerging emphasis on multitargeted therapies. The unique features of sd-rxRNA may offer a new alternative to treating cancers which could lead to attractive product candidates to further advance in conjunction with partners.

Opportunistic Pursuit: RXi will continue to evaluate multiple opportunities and is prepared to engage in more active therapeutic development in cases where a program is funded by a partner or where RXi attains promising initial results. These opportunities could be in a variety of areas, such as hepatic (HCV), respiratory (asthma, COPD), oncology and others.

Pro-Pharmaceuticals Books First Order of Galectin Blockers

I said last week that I was going follow up on progress by Pro-Pharmaceuticals Inc. (OTCBB: PRWP). I didn't include the link then to their press release announcing the company's first order. So I'm doing that today.

I have enormous confidence in this company and intend to bring you more information very soon. I've set up time, in fact, to speak with their new chief medical officer, Dr. Peter G. Traber. Dr. Traber is not just the ex-chief medical officer for pharma giant GlaxoSmithKline. Traber was also senior vice president for clinical development and medical affairs responsible for global clinical trials. He was responsible for marketed and development drug safety evaluation. He is an internationally recognized authority on liver disease. I'll tell you more about the way Pro-Pharmaceuticals' drug Davanat addresses that huge market soon.

Incidentally, I believe Pro-Pharmaceuticals has emerged completely from its early corporate mistakes. I was aware of those problems and did the due diligence to assure myself that early errors were in the past. In fact, the company would not be the bargain it is today if not for early, but now rectified, missteps.

As of now, the individuals who had issues with the company are effectively gone from the picture. So I see clear skies ahead for this transformational company. Pro-Pharmaceuticals is not, of course, the only company in our portfolio that has recovered from early blunders.

Echometrix Adds Critical Tech Talent

Echometrix Inc. (OTCBB: EHMI) has also recovered from early missteps. In fact, I've known about the company for well over a year. That was when Peter Charles was asked by the investment group behind Echometrix to solve those very problems. Charles, as you may remember, was one of the Lightbridge players who helped get the company where it is today.

Despite past problems, I was enormously excited about the potential of the company. As I've said, the SMS texting market is still in its infancy. It has huge potential -- especially for cell phone technology such as parental controls (search Google News using the term "sexting" if you would like to understand why.)

Here is just one story about the political and legal pressures poised to make the company a winner. Specifically, the New York City Department of Education is proposing that students who engage in inappropriate texting even while at home be suspended from school. Clearly, parents need a way to monitor and prevent such expulsions. Clearly, as well, no one is better situated to provide such a solution than Echometrix.

A year ago, however, it was not yet clear that Charles would be able to straighten out the legal and management issues that troubled the company. I can't speak in detail now about those problems except to say they have been dealt with. An important step in that process was Charles' appointment to the board of directors in November last year.

Back then, even Charles didn't think the company was ready for a recommendation. He wanted to be sure the company's difficulties were behind it. And I believe they are. Charles told me recently about the addition of a top technology executive to the company's roster. This should accelerate strategic and technology planning and execution. I'll give you more information as it becomes public.

Keep in mind that the majority owner of Echometrix is a billion-dollar investment group. They put Charles into his position with the company because they understand its potential. They are also committed to seeing it succeed. You'll probably continue to hear rumors that confuse the company's past with current status, but that's typical. Unverified and inaccurate information flows freely on the Internet.

I would remind you of the completely discredited attacks on NanoViricides (OTCBB: NNVC). Don't get spooked when people spread rumors about small caps. Fear mongering is, in fact, an enormously profitable industry these days.

If, for example, you search using Google for "NanoViricides," the top paid search results imply that the company is a scam.

If you click through the links and pay for the analysis, however, the companies who are selling this will admit that NanoViricides is not a scam. By then, however, they have your money. Obviously, there's money to be made scaring potential investors, or these companies wouldn't continue paying for such ads.

Q&A with ISCO

International Stem Cell Corp. (OTCBB: ISCO) has also been the target of rumor campaigns. ISCO, incidentally, recently announced further positive IP news. Specifically, Advanced Cell Technology, Inc. (ACT) was just issued U.S. Patent Number 7736896 covering a method for producing retinal pigment epithelial cells. ISCO, however, had previously acquired rights to this technology from ACT, so the award solidifies their position in stem cell eye therapies.

ISCO's corneal research also got an unexpected boost last week, though it's not clear how many people know it yet. A stem cell breakthrough from Italy made quite a few headlines. The article that provoked the coverage was in the June 23 online version of The New England Journal of Medicine (NEJM). Specifically, it featured clinical research from professor Graziella Pellegrini et al. titled "Limbal Stem-Cell Therapy and Long-Term Corneal Regeneration." A helpful video by ABC News can be viewed here.

The coverage of the journal article is, however, incomplete. So let me put it in perspective.

The procedure made use of the well-established practice of extracting and cultivating limbal stem cells. Each of the patients, in effect, had stem cells removed from at least one eye. Once the adult stem cells were multiplied in the lab, they were applied to the cornea. There, they regenerated the corneal epithelium (the outermost thin layer of the cornea), restoring sight.

This is wonderful proof of the power of stem cells, but it doesn't represent a breakthrough in terms of basic science or investment possibilities. This is because the cost of extracting these surviving stem cells is very high. So is multiplying and reattaching them. The only reason the experiments were even allowed to proceed is that all the cell materials come from the subjects of the procedures. They would not have been allowed if, for example, scientists wanted to use the stem cells from one patient to treat another patient. Nor is it clear to what extent, if any, a company can patent these procedures.

On the other hand, the Italian procedures were most successful when they were combined with the implantation of replacement corneal structures. Those replacement corneas cannot be regenerated from limbal stem cells. In fact, they came from cadavers.

ISCO, however, is now able to grow them in the lab to produce cheaper, safer corneas. ISCO is involved in discussions with various companies to commercialize those parthenogenic corneal structures.

For most patients, who have enough of their own stem cells to regenerate the corneal epithelium, ISCO's corneas are all that are required to recover sight. Eventually, in fact, I suspect that ISCO will also have off-the-shelf limbal stem cells that will regenerate the corneal epithelial too. These cells would be from each of ISCO's cell bank lines. Now being established, it will include 50-100 cell lines that immune match most of the world's population. No other company has this ability to provide inexpensive stem cells for the masses.

Now allow me to debunk some of the rumors currently being spread about ISCO. Normally, as you know, I don't like to dignify these attacks, but I do make exceptions when it's important. I'm doing this, by the way, in a question-and-answer format that board chairman Ken Aldrich was kind enough to answer. The questions deal with some of the unfounded rumors circulating. If these don't concern you, feel free to skip them.

Q1. Did ISCO close its financing?

A1. Yes, they did a $10 million financing, and then used $2.5 million as part of a balance sheet cleanup that removed approximately $15 million of 10% preferred stock and still left them with an additional $7.5 million in cash on the balance sheet, in addition to whatever cash was already there.

Q2. Doesn't Socius hold a lot of preferred stock that will be a future burden to ISCO?

A2. No, all of that has been retired as part of the capital restructuring announced in an 8-K filed June 11, 2010. As a result, Socius and its predecessor company, Optimus, hold no preferred shares of ISCO at all.

Q3. Is the company running out of money?

A3. Based on the monthly "burn" rate of about $550,000 for the last 15 months ($562,000 for the last quarter), the proceeds of the company's most recent financing of $7.5 million after the repayment of the outstanding preferred stock of Socius and Optimus would give the company at least 12 months of "runway," even without any additional revenues from operations, licensing or partnerships.

I could go on, but this is pretty long. Next week, I'll have more on Lightbridge and Pro-Pharmaceuticals.

For transformational profits,

Patrick Cox

To become a member and read this article on the Agora Financial Website, please visit here

California Health Institute Interviews Jeffrey Janus - CEO of Lifeline Cell Technology

Executive Spotlight: Jeffrey Janus, director and SVP of operations, International Stem Cell Corp., and president and CEO, Lifeline Cell Technology

Jeffrey Janus serves as director and senior vice president of operations of new CHI member International Stem Cell Corp. and president and chief executive officer of Lifeline Cell Technology, one of the company’s subsidiaries. International Stem Cell Corp. (ISCO.OB) is a publicly traded stem cell therapy company with research and manufacturing facilities in Oceanside, Calif., and Walkersville, Md. The company’s technology revolves around its discovery of a proprietary and unique class of stem cells called human parthenogenetic stem cells (hpSC). These cells have distinct medical, practical and ethical advantages over embryonic and adult stem cells. They allow immune-matched stem cells and therapeutic cells to be “banked” and available immediately for millions of patients who are in critical need and cannot wait to derive cells from their own bodies. In addition to Lifeline Cell Technology, the company has another subsidiary called Lifeline Skin Care.

Janus is trained in biochemistry and business management and has more than 20 years experience focused on cell-based businesses. He is a member of the team that discovered parthenogenesis and is published in the stem cell field. After joining International Stem Cell Corp., (ISCO) Janus subsequently founded Lifeline Cell Technology to meet a growing need for media and human cells in pharmaceutical drug screening, consumer product testing and basic research at universities and government laboratories and to provide revenue and operational infrastructure for ISCO. The CHI Blog recently caught up with Janus to find out the latest on the company.

Q: How did your company get started? A: We started this company based on the work of Elena Revazova, M.D., Ph.D., a scientist well known in Russia who had a dream of curing diabetes using embryonic stem cells. She came to the United States to work and her talent and expertise in growing human cells was discovered by ISCO’s founders, who decided to form a company around her knowledge and skill. At the time, U.S. President [George W.] Bush was restricting the use of embryonic stem cells on ethical grounds, and there were also patent issues around embryonic stem cells, as there still are. We recognized that the ethical issue was important, but medially the most important problem with stem cell therapy was likely to be immune rejection. We realized we could address these issues by developing the technology called parthenogenesis and mitigate delays from funding and restrictions by working in Russia. So Dr. Revazova went back to Russia, and we set up a collaboration in Moscow to begin her work with parthenogenesis. Today our company has all of the intellectual property rights to parthenogenesis, a very powerful technology. We have also recently brought in Andrey Semechkin, Ph.D. as our CEO. Dr. Semechkin is a well-known scientist in the field of systems analysis and an accomplished businessman.

Q: How does parthenogenesis work? A: It’s the derivation of stem cells from an unfertilized human egg. The ethical issue surrounding work with embryonic stem cells is caused by the fact that embryonic stem cells are derived from a fertilized embryo, which has the potential to be a human being. However, if you do not fertilize the egg and yet you can derive stem cells from it that are functional, you’re not destroying a viable human embryo—and that’s exactly what Dr. Revazova did. We perfected parthenogenesis and brought it back to the United States. As a result, we have been able to overcome the ethical issue surrounding using embryonic stem cells with parthenogenesis.

Q: What are your technology’s other advantages? A: Parthenogenesis makes embryonic stem cells (or what we call parthenogenetic stem cells) that can be immune matched to millions of people. Using embryonic stem cells, the way they are currently made, is sort of like trying to do a bone marrow transplant between one person and another picked at random without making sure you have a match. If someone needs to have a bone marrow transplant, they usually go to brothers or sisters first and try to do an immune match. For a different set of reasons a similar situation exists with blood transfusions, although type O blood can be given to almost everyone. Our cells are similar in that the parthenogenic stem cells can be immune matched to many people, and that’s the unique quality of our cells.

Q: What are the biggest opportunities for your business going forward? A: We are creating a bank of hpSC that are “pluripotent” and carry common immune types that will match a large percent of the U.S. population, and this is a huge opportunity. These will be clinical grade and will be made in our new manufacturing facility located in Oceanside, Calif. Our biggest opportunity is the potential ability of our stem cells to be universally utilized for therapy. Scientists across the world are working on embryonic stem cells and figuring out ways to make therapeutic cells such as liver cells or nerve cells for a whole host of diseases. Eventually these therapies will need a cell or process that will minimize immune rejection. Our cells can be immune matched to millions of persons and are thus a solution for this need. So in a way, much of the work that’s going on right now across the world with embryonic stem cells accrues to our benefit. In addition, we are focused in four distinct areas—diabetes, liver disease, retinal and corneal disease, and nerve disease. We are currently growing cells to cure corneal blindness and have actually grown cornea tissue. We’re working with the University of California, Irvine to grow cells with a retina for macular degeneration. We have grown cells that are very similar to liver cells that are also related to a cell type called beta cells, which may be useful for diabetes. Collaborations with companies and universities present strong opportunities, and we’ve collaborated with Novocell in San Diego to further our work with diabetes, and we’re collaborating with UC San Francisco to test our liver cells derived from our parthenogenic stem cells and with researchers in Germany to study nerve cells generated from our stem cells.

Q: Tell us a little bit about your subsidiaries. A: One unique thing about our company is that we are a research-oriented biotech company that actually has income. One of our subsidiaries, Lifeline Cell Technology, is growing very nicely (with a 150 percent increase in sales over the last year) by selling research products to grow human cells and study human disease. Lifeline has more than 70 products and will be releasing more than a dozen more in 2010. Lifeline Skin Care was created in 2009 based on our discovery that derivatives from our parthenogenetic stem cell technology have proven to be beneficial to human skin. Lifeline Skin Care is developing several products and is beginning early-stage clinical trials with these skin products. We anticipate that these skin care products will help to generate income and fund our continuing stem cell therapeutic research.

Q: What are your company’s greatest accomplishments so far? A. We have successfully created 10 human parthenogenetic stem cell lines, one which carries the most common immune type in the United States and matches over a hundred million persons across the world. We are a fast-growing company with more than 12 scientists working in various areas of therapy and product development. Our stem cells have proven to be able to create cells that may be useful in therapy, including liver-like cells, corneal cells, retinal cells, nerve cells and cell types that may ultimately be useful in the treatment of diabetes. We have set up collaborations with major universities and researchers across the world. The amazing thing about our company is that we have developed into a company that has manufacturing, products, sales, quality control, therapeutic research, and an accounting department in such a short time. We have all the workings of a fully functional product manufacturing and therapeutic research company. It amazes me that we are making sales, whereas most companies our size are basic research and development companies. We know how to make human cells and freeze, store and manipulate them so that they are clinical grade. I think our technology, our knowledge of cell culture and our ability to manufacture are three very strong reasons that we have been successful.

CHI-Advancing California biomedical research and innovation
SOURCE: http://californiahealthcareinstitute.blogspot.com/2010/02/executive-spotlight-jeffrey-janus.html

International Stem Cell Corporation (ISCO.OB) Announces New Patent Issuance Under License Agreement

International Stem Cell Corporation (OTCBB:ISCO), www.intlstemcell.com, a California-based biotechnology company focused on therapeutic and research products, congratulates Advanced Cell Technology, Inc. (ACT) on the issuance of its recent patent, U.S. Patent Number 7,736,896, covering a method for producing retinal pigment epithelial cells.

As licensee of the retinal cell technology covered by this ACT patent, ISCO looks forward to building on this discovery, either independently or in collaboration with ACT, with the goal of advancing the search for treatment of such diseases as Macular Degeneration and Retinitis Pigmentosa, leading causes of blindness in adults, both in the US and the World.

In addition to its licensed interest in the ACT patent, ISCO is developing its own proprietary technology for creating and implanting retinal pigment epithelial (RPE) cells that may be usable either in conjunction with its licensed technology from ACT or independently.

'This is just one more example of the remarkable advancement in science toward the treatment of life's more dreaded diseases, and we are proud to be one of the leading pioneers in that effort,' said Kenneth Aldrich, Chairman of ISCO.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California-based biotechnology company focused on therapeutic and research products. ISCO's core technology, parthenogenesis, results in creation of pluripotent human stem cells (hpSCs) from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. This offers the potential to create the first true stem cell bank, UniStemCell^(TM), while avoiding the ethical issue of using fertilized eggs. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology. More information is available at ISCO's website, www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

FORWARD-LOOKING STATEMENTS

Statements pertaining to anticipated technological developments and therapeutic applications, and other opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

Key Words: Stem Cells, Biotechnology, Parthenogenesis

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman
760-940-6383
kaldrich@intlstemcell.com
or
Brian Lundstrom, President
760-640-6383
bl@intlstemcell.com

International Stem Cell Corporation Names Charles J. Casamento to Board of Directors

International Stem Cell Corporation (OTCBB:ISCO), www.intlstemcell.com, a California-based biotechnology company focused on therapeutic and research products, announced today that Charles J. Casamento was elected to the Board of Directors, on June 21, 2010.

Mr. Casamento is currently Executive Director and Principal of The Sage Group, a healthcare advisory group specializing in mergers, acquisitions, and partnerships between biotechnology companies and pharmaceutical companies. During his career, Mr. Casamento has served as a director on the boards of eight public biotechnology/pharmaceutical companies. He was the president and CEO of Osteologix, Inc., a public biopharmaceutical company developing products for treating osteoporosis, from 2004 through 2007. From 1999 through 2004, he served as chairman of the board, president and CEO of Questcor Pharmaceuticals, Inc. Mr. Casamento formerly served as RiboGene, Inc.'s president, CEO and chairman of the board from 1993 through 1999 until it merged with Cypros to form Questcor. He was co-founder, president and CEO of Interneuron Pharmaceuticals, Inc. (Indevus), a biopharmaceutical company, from 1989 until 1993. Mr. Casamento has also held senior management positions at Genzyme Corporation, where he was senior vice president, pharmaceuticals and biochemicals; American Hospital Supply, where he was vice president of business development and strategic planning for the Critical Care Division; Johnson & Johnson, Hoffmann-LaRoche, Inc. and Sandoz Inc. Mr. Casamento also serves on the Boards of Directors of CORTEX Pharmaceuticals, SuperGen, Inc. and VIVUS, Inc. He holds a bachelor's degree in Pharmacy from Fordham University and an M.B.A. from Iona College and was originally licensed to practice pharmacy in the states of New York and New Jersey.

'Mr. Casamento is a vital addition to our Board and brings to International Stem Cell Corporation expertise in areas that will help guide our company through growth, including corporate governance, business development, strategic planning, financing, mergers and acquisitions, product development, clinical trials and corporate and research and development collaboration activities,' said Kenneth Aldrich, Chairman.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California-based biotechnology company focused on therapeutic and research products. ISCO's core technology, parthenogenesis, results in creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. This offers the potential to create the first true stem cell bank, UniStemCell^(TM), while avoiding the ethical issue of using fertilized eggs. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology. More information is available at ISCO's website, www.internationalstemcell.com.

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FORWARD-LOOKING

Statements pertaining to anticipated technological developments and therapeutic applications, and other opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as 'will,' 'believes,' 'plans,' 'anticipates,' 'expects,' 'estimates') should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

Key Words: Stem Cells, Biotechnology, Parthenogenesis

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman
760-940-6383
kaldrich@intlstemcell.com
or
Brian Lundstrom, President
760-640-6383
bl@intlstemcell.com