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International Stem Cell Corporation (ISCO) Announces Q2 Financial Results

Aug. 09, 2012 2:14 PM ETISCO
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California based biotechnology company International Stem Cell Corporation announced financial results for the three and six month periods ended June 30, 2012.

• Revenue for the quarter (Q2) ended June 30, 2012, totaled $1.06 million, compared to $1.11 million for the same period in 2011. The decrease came largely from lower sales from Lifeline Cell Technology (LCT).

• Revenue for the 6-month period ended June 30, 2012, was $2.13 million, compared to $2.63 million for the same period in 2011. The decrease came largely from lower sales from Lifeline Skin Care (LSC).

• R&D expenses for the quarter were $0.87 million, a 23% decrease compared to the same period in 2011. The reduction in expenses was due primarily to lower consulting expenses associated with various research projects, along with lower stock-based compensation expenses, lower laboratory expenses, and lower personnel related expenses, although stem cell line research expenses did increase.

• ISCO continues to invest in sales and marketing initiatives. Marketing expenses for the quarter were $0.55 million, an increase of 58% over the same period in 2011. For the 6-month period ended June 30, 2012, marketing expenses were $1.04 million, a 57% increase over the same period in 2011.

• General and administrative expenses for the quarter were $1.76 million, down 18% from the same period in 2011, due largely to ongoing increases in operational efficiency. For the 6-month period ended June 30, 2012, general and administrative expenses were $3.79 million, a 13% decrease from the same period in 2011.

• Cash and cash equivalents totaled $4.29 million on June 30, 2012, compared to $1.34 million as of December 31, 2011, due primarily to two financing transactions totaling approximately $6.9 million.

ISCO's CEO and Co-Chairman, Andrey Semechkin, commented on the results: "We have made solid progress across our entire organization in the first half of this year, and I'm pleased to see that the operational efficiencies we implemented in the second quarter are resulting in lower administrative expenses. Going forward we will continue to look for further opportunities to improve our organization effectiveness and reduce expenses. As you may have read in my shareholder letter, following a detailed analysis of our research priorities, we concentrated our resources on the most promising therapeutic programs and this has already resulted in exciting achievements and progressed our programs closer to clinical development."

Developmental Highlights:

• The company developed a new method to derive high-purity populations of neural stem cells from human parthenogenetic stem cells (hpSC) and further differentiate them into dopaminergic neurons. This method is highly efficient and capable of generating sufficient quantities of neuronal cells for our pre-clinical and clinical studies.

• In the Parkinson's disease program, the company was able to demonstrate in rodent models that developed neurons from ISCO can survive after implantation and can release dopamine.

• In the metabolic diseases program, the company has shown that their immature hepatocyte-like cells derived from their hpSC can successfully engraft and mature in rodents and produce liver specific proteins.

• In the corneal blindness program, the company developed differentiation technology to create endothelium-like cells, a significant step towards creating complete corneas that could be used in transplantation.

A conference call and webcast is scheduled for Friday, August 10, at 11:00 AM Eastern Time.

Conference Participation Information:

Domestic: 1 877 317-6776

International: 1 412 317-6776

Conference ID: 10017300

Webcast link: webcast.mzvaluemonitor.com/Home/Login/7f...

Replay of the conference call will be available for two weeks following 1 hour after the end of the conference call through end date: Aug 24, 2012 at 9:00 am ET .

Teleconference Replay Details:

US Domestic: 1-877-344-7529

International: 1-412-317-0088

Conference ID: 10017300

For additional information, visit the company's website at InternationalStemCell.com

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