CARLSBAD, Calif. (May 05, 2011) - At the annual shareholders meeting of International Stem Cell Corporation (OTCBB:ISCO) on May 3, 2011, Kenneth Aldrich, Chairman and co-founder of ISCO conducted a presentation to shareholders that included the following remarks:
Good morning to all our shareholders and friends of ISCO. Let me make just a few comments about where we are and the progress we have made over the last year. All of the developments and news I will discuss were announced in the past 12 months, but with the passage of time it is easy to lose track of how much progress ISCO has actually made. I won’t mention everything—we don’t have that much time, but some highlights will, I hope, help put these recent achievements into perspective.
A little less than a year ago, in June 2010, our first parthenogenetic patent application was formally approved by the US Patent Office. More applications are pending, but this approval established ISCO as the lawful owner of the rights to produce human stem cell lines through parthenogenesis. That is a platform on which we expect to build for a long time.
Also in June we eliminated all of our outstanding corporate debt and we remain debt free.
In July we announced the signing of a distribution contract with Sristi Biosciences, a major seller of research products in India, which continues the international commercial expansion of our Lifeline Cell Technology® brand.
In October we announced the first steps toward the formation of a major funded collaboration in India with Insight Bioventures India Private Limited (IBVI) to develop treatments for corneal damage and retinal disease. Planning for that work is ongoing and the Executive Director of Insight Bioventures has flown in from India to meet with us today, so we remain very optimistic about this project.
In November, we presented the results of scientific studies demonstrating a new and better method for differentiating our parthenogenetic cells into liver cells, a critical step toward using them to treat liver disease.
In November and December we launched the first test marketing runs of our new skin crème products, first to our own shareholders and friends, then to a select mailing list developed by our marketing partner, John Mauldin. Those resulted in sales of over 7,000 bottles of our new products.
In December we established $25 million financing commitment that provides access to capital on an as-needed basis over a three year period, but never requires the sale of stock unless we think it will benefit the company and its shareholders. This agreement provides us a high degree of flexibility in meeting our financial needs.
In January 2011 we announced publication of peer-reviewed studies further validating the functional equivalency of our parthenogenetic stem cells with embryonic stem cells. These studies confirm our ability to benefit from much of the millions of dollars of research on embryonic stem cells over the last decade. In short, we have a running start in the search for cures.
Throughout the year we have made steady progress in development of liver cells and liver precursor cells, culminating in an announcement in April of this year that we had successfully completed the first in a series of pre-clinical tests of parthenogenetically derived liver cells.
Last, but by no means least, we have received the necessary approvals for creating new Parthenogenetic Stem Cell Lines in the United States. These will be clinical grade lines suitable for human trials, and are the first major step in this country to begin building a “Bank” of stem cells enabling the matching of immune systems of millions of people worldwide, with the potential to eliminate or reduce the harmful effects of immune suppressing drugs that would normally have to be used with stem cell transplant procedures.
All of these news stories and more are available on our website along with presentations we have made recently to investors in the US and Europe. On behalf of the Board of Directors and everyone at ISCO, I thank you for your support.
About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in the 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 genders, ages and racial background. This offers the potential to create the first true stem cell bank, UniStemCell™. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology, and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at www.internationalstemcell.com.
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Statements pertaining to anticipated developments, product introduction plans and related support, the potential benefits of products, and other opportunities for the company and its subsidiaries, 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 and the management of collaborations, 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 forward-looking statements.
International Stem Cell Corporation
Kenneth C Aldrich, Chairman
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