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Aldagen withdraws plans for IPO

Stem cell therapy, Aldagen is pulling back on its plans for an IPO.

In 2009, they filed a registration statement seeking to raise more than $80M to take its compounds into mid-stage clinical trials. It’s the 2nd time, it has withdrawn plans for a public offering; having previously pulled its IPO plans in 2008.

Aldagen develops regenerative cell therapies for cardiovascular conditions. The company’s proprietary technology isolates specific adult stem cells that express high levels of the enzyme ALDH, which plays an important role in controlling the developmental state of stem cells and progenitor cells. The company believes that these cell populations have the potential for a medical breakthrough in regenerative medicine in promoting regeneration of multiple types of cells and tissue, including blood vessels.

The Bottom Line: The Durham, North Carolina-based company said in a filing with the SEC that it is withdrawing its IPO plans “due to market conditions”.  Aldagen’s lead stem cell therapy candidates include a treatment for critical limb ischemia (NYSE:CLI), a severe obstruction of the arteries that decreases blood flow to the extremities of the body. They are also developing a treatment for ischemic heart failure, a condition in which the heart suffers from decreased blood flow and oxygen due to narrowing of the arteries. in 1/11, they received US FDA clearance to begin a PII study of a regenerative cell therapy for stroke patients. Venture capital backed Aldagen has raised more than $60M from a syndicate of investors that includes the Aurora Funds, Intersouth Partners, Harbert Venture Partners, CNF Investments and Tullis-Dickerson.