Market Update

RNS Number : 2600H

Stem Cell Sciences plc

03 November 2008

 

Press Release 

MARKET UPDATE 

3rd November 2008

Stem Cell Sciences plc (AIM:STEM, ASX:STC): The Directors of Stem Cell Sciences plc are pleased to provide the following progress report, which is also being released to the ASX as part of its standard reporting requirements.

During the past quarter, revenue from sales and grants and costs were in line with expectations and costs were reduced to anticipated levels following the strategic reorganisation announced in February this year.

The Company announced the creation of the first authentic rat embryonic stem cells using technology exclusively licensed from the University of Edinburgh. This has led to immediate commercial interest from a number of organisations which may lead to cash generating licence deals.

The Company also continued to pursue other cash generating opportunities including developing fee generating research collaborations, producing licence fees from its intellectual property (including pursuing known infringers of its patents) and discussing the sale of its media business known as SC Proven. 

The Company has progressed confidential discussions with companies on all of the above areas and hopes to announce one or more deals before the end of the year. None of these discussions are sufficiently advanced to warrant disclosure at this time.

The Company is also investigating raising capital by other means and the Directors believe that the Company could access additional equity financing if required.

The Company means to continue developing the deal discussions in line with its business objectives, which as stated in the half-yearly results announced 28th August, 2008, are: 

    To secure at least one major pharmaceutical research collaboration this year

    To pursue the value existing in our extensive and fundamental intellectual property in the stem cell field through licensing agreements

    To realise the strategic value of our specialist stem cell media business by an asset sale

Progress in these discussions has continued as expected and the Directors have confidence in concluding some or all of them this financial year. 

The following extract has been taken from the Appendix 4C - Quarterly report for entities admitted on the basis of commitments. 

Consolidated statement of cash flows for Quarter ended 30th September 2008 (rate of exchange GBP £1= A$ 2.2081- unaudited)

Cash flows related to operating activities	Current quarter  $A'000	Year to date  9  months  $A'000
Receipts from customers	102	468
Payments for:     (a) staff costs     (b) advertising and marketing     (c) research and development     (d) leased assets     (e) other working capital	(454) - (750) - (1,177)	(1,888) - (3,169) - (3,491)
Dividends received	-	-
Interest and other items of a similar nature received	29	238
Interest and other costs of finance paid	(2)	(11)
Income taxes paid	-	-
Other (provide details if material)	79	329
Net operating cash flows	(2,174)	(7,523)
Cash at beginning of quarter/year to date	3,809	9,159
Cash at end of quarter	1,636	1,636

ENDS

For further information, please contact:

Stem Cell Sciences plc (United Kingdom)

Alastair Riddell, CEO

Giorgio Reggiani, Chief Financial Officer

[phone]

Stem Cell Sciences pty ltd (Australia)

Paul Bello, Operations Manager

[phone]

Citigate Dewe Rogerson (United Kingdom)

Mark Swallow / Emma Palmer Foster / Amber Bielecka

[phone]

Talk Biotech (Australia)

Fay Weston, Director

[phone]

Daniel Stewart & Company (United Kingdom)

Simon Leathers / Simon Starr

[phone]

About Stem Cell Sciences plc

Stem Cell Sciences (SCS) is an international research and development company focusing on the commercial application of stem cell biology technologies for drug discovery and regenerative medicine research. Stem Cell Sciences is now focussing on building revenues through the sale of products, collaborative research and licensing deals with international biotechnology and pharmaceutical companies.

Stem Cell Sciences has a substantial portfolio of patents and patent applications in both adult and embryonic stem cell fields. The Company has been active in the stem cell research field since 1994, principally focused on technologies to grow, differentiate, and purify adult and embryonic stem cells. These include technologies to permit the generation of highly purified stem cells and their differentiated progeny (specialised tissue cell types) for use in genetic, pharmacological and toxicological screens. Moreover, these technologies may be able to provide pure populations of appropriate cell types for transplantation therapies in the future.

The Company has its main research base and headquarters in Cambridge, UK with a second research base in Monash near Melbourne, Australia and a business development office in San Francisco, USA.

For further information on the company please visit:  www.stemcellsciences.com.

 

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