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Stem Cells Show Promise in Heart Failure Patients

Posted: April 11, 2013 at 11:45 pm

Wednesday, April 10, 2013

ROCHESTER, Minn. Translating a Mayo Clinic stem-cell discovery, an international team has demonstrated that therapy with cardiopoietic (cardiogenically-instructed) or "smart" stem cells can improve heart health for people suffering from heart failure. This is the first application in patients of lineage-guided stem cells for targeted regeneration of a failing organ, paving the way to development of next generation regenerative medicine solutions. Results of the clinical trial appear online of the Journal of the American College of Cardiology.

VIDEO ALERT: Audio and video resources are available on the Mayo Clinic News Network.

The multi-center, randomized Cardiopoietic stem cell therapy in heart failure (C-CURE) trial involved heart failure patients from Belgium, Switzerland and Serbia. Patients in the control group received standard care for heart failure in accordance with established guidelines. Patients in the cell therapy arm received, in addition to standard care, cardiopoietic stem cells a first-in-class biotherapeutic. In this process, bone marrow was harvested from the top of the patient's hip, and isolated stem cells were treated with a protein cocktail to replicate natural cues of heart development. Derived cardiopoietic stem cells were then injected into the patient's heart.

"The cells underwent an innovative treatment to optimize their repair capacity," says Andre Terzic, M.D., Ph.D., study senior author and director of the Mayo Clinic Center for Regenerative Medicine. "This study helps us move beyond the science fiction notion of stem cell research, providing clinical evidence for a new approach in cardiovascular regenerative medicine."

Every patient in the stem cell treatment group improved. Heart pumping function improved in each patient within six months following cardiopoietic stem cell treatment. In addition, patients experienced improved fitness and were able to walk longer distances than before stem cell therapy. "The benefit to patients who received cardiopoietic stem cell therapy was significant," Dr. Terzic says.

In an accompanying editorial, Charles Murry, M.D., Ph.D., and colleagues at the University of Washington, Seattle, say, "Six months after treatment, the cell therapy group had a 7 percent absolute improvement in EF (ejection fraction) over baseline, versus a non-significant change in the control group. This improvement in EF is dramatic, particularly given the duration between the ischemic injury and cell therapy. It compares favorably with our most potent therapies in heart failure."

The science supporting this trial is a product of a decade-long journey in decoding principles of stem cell-based heart repair. "Discovery of rare stem cells that could inherently promote heart regeneration provided a critical clue. In following this natural blueprint, we further developed the know-how needed to convert patient-derived stem cells into cells that can reliably repair a failing heart," says Dr. Terzic, underscoring the team effort in this endeavor.

Initial discovery led to the identification of hundreds of proteins involved in cardiogenesis, or the heart development process. The research team then identified which proteins are necessary in helping a stem cell become a reparative cell type, leading to development of a protein cocktail-based procedure that orients stem cells for heart repair. Such upgraded stem cells are called cardiopoietic or heart creative.

Mayo Clinic partnered with Cardio3 Biosciences, a bioscience company in Mont-Saint-Guibert, Belgium, for advanced product development, manufacturing scale-up, and clinical trial execution.

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Pro-lifers eye Kansas for top study of stem cells; no embryo use at proposed center

Posted: April 11, 2013 at 11:45 pm

Long clouded by ethical concerns, medical treatments and research based on stem cells taken from adults or the umbilical cords of newborns but not human embryos are getting renewed support from lawmakers and religious leaders.

In the deep-red state of Kansas, lawmakers are waiting to see whether Gov. Sam Brownback, a Republican, will sign a bill making the University of Kansas Medical Center a hub for adult stem cell research and therapies in the region.

Mr. Brownback, a social conservative who promised to build a culture of life in the state, has signaled support for such a center. The bill passed the Legislature on Friday but has not reached his office, an aide said Wednesday.

If enacted, the new Midwest Stem Cell Therapy Center would focus on research and therapies exclusively using stem cells from human adults and cord blood and tissue. Stem cells harvested from human embryos or tissues from aborted fetuses would be specifically prohibited.

Treatments exploiting the unique qualities of stem cells biological cells with the ability to reproduce and develop into specialized cells used throughout the body have been used for decades to cure some diseases, and researchers say the approach has exciting potential to treat or cure maladies such as diabetes, multiple sclerosis, cancer, cardiovascular disease, spinal cord injuries, Parkinsons disease and autoimmune diseases.

However, political, legal and cultural battles have abounded since scientists discovered in the 1990s that they could use human embryos as sources for harvesting stem cells. Pro-life and Catholic groups denounced the process because it destroys the embryos, but scientists said such research can be carried out ethically, especially when the benefits are so promising.

The center is being proposed after seven years of efforts to create partnerships around the adult stem cell approach, said Kathy Ostrowski, legislative director of Kansans for Life, sidestepping the moral minefield that has held back research in the United States.

The University of Kansas Medical Center is active in adult stem cell clinical trials and research, and this first-of-its-kind center would be an economic engine in this strategic field as well as a gold mine for treatments and cures, Ms. Ostrowski said.

The proposed Midwest Stem Cell Therapy Center which would partner with the Blood and Marrow Transplant Center of Kansas would produce clinical-grade stem cells and conduct clinical trials with adult stem cell therapies, creating opportunities for people with diseases or injuries to participate in such trials.

During legislative hearings on the proposed stem cell center, no one testified against the idea. However, critics noted that while Kansas lawmakers established a way for donations to come to the new center, they didnt authorize any state money for it.

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Cardiopoietic ‘Smart’ Stem Cells Show Promise in Heart Failure Patients

Posted: April 11, 2013 at 11:45 pm

Released: 4/10/2013 9:55 AM EDT Source Newsroom: Mayo Clinic

VIDEO ALERT: Audio and video resources are available on the Mayo Clinic News Network.

First-in-humans study introduces next generation cell therapy

Newswise ROCHESTER, Minn. -- Translating a Mayo Clinic stem-cell discovery, an international team has demonstrated that therapy with cardiopoietic (cardiogenically-instructed) or smart stem cells can improve heart health for people suffering from heart failure. This is the first application in patients of lineage-guided stem cells for targeted regeneration of a failing organ, paving the way to development of next generation regenerative medicine solutions. Results of the clinical trial appear online of the Journal of the American College of Cardiology.

The multi-center, randomized Cardiopoietic stem cell therapy in heart failure (C-CURE) trial involved heart failure patients from Belgium, Switzerland and Serbia. Patients in the control group received standard care for heart failure in accordance with established guidelines. Patients in the cell therapy arm received, in addition to standard care, cardiopoietic stem cells -- a first-in-class biotherapeutic. In this process, bone marrow was harvested from the top of the patients hip, and isolated stem cells were treated with a protein cocktail to replicate natural cues of heart development. Derived cardiopoietic stem cells were then injected into the patients heart.

The cells underwent an innovative treatment to optimize their repair capacity, says Andre Terzic, M.D., Ph.D., study senior author and director of the Mayo Clinic Center for Regenerative Medicine. This study helps us move beyond the science fiction notion of stem cell research, providing clinical evidence for a new approach in cardiovascular regenerative medicine.

Every patient in the stem cell treatment group improved. Heart pumping function improved in each patient within six months following cardiopoietic stem cell treatment. In addition, patients experienced improved fitness and were able to walk longer distances than before stem cell therapy. The benefit to patients who received cardiopoietic stem cell therapy was significant, Dr. Terzic says.

In an accompanying editorial, Charles Murry, M.D., Ph.D., and colleagues at the University of Washington, Seattle, say, Six months after treatment, the cell therapy group had a 7 percent absolute improvement in EF (ejection fraction) over baseline, versus a non-significant change in the control group. This improvement in EF is dramatic, particularly given the duration between the ischemic injury and cell therapy. It compares favorably with our most potent therapies in heart failure.

The science supporting this trial is a product of a decade-long journey in decoding principles of stem cell-based heart repair. Discovery of rare stem cells that could inherently promote heart regeneration provided a critical clue. In following this natural blueprint, we further developed the know-how needed to convert patient-derived stem cells into cells that can reliably repair a failing heart, says Dr. Terzic, underscoring the team effort in this endeavor.

Initial discovery led to the identification of hundreds of proteins involved in cardiogenesis, or the heart development process. The research team then identified which proteins are necessary in helping a stem cell become a reparative cell type, leading to development of a protein cocktail-based procedure that orients stem cells for heart repair. Such upgraded stem cells are called cardiopoietic or heart creative.

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Cardiopoietic 'Smart' Stem Cells Show Promise in Heart Failure Patients

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Mayo: ‘Smart’ stem cells for heart failure patients

Posted: April 11, 2013 at 11:45 pm

by Elizabeth Dunbar, Minnesota Public Radio

April 11, 2013

ST. PAUL, Minn. Treating heart failure patients with a special type of stem cell can improve their condition, according to a new Mayo Clinic study published this week.

The researchers used proteins to instruct the stem cells to behave like heart cells. All of the 45 patients in the clinical trial who received the "smart" stem cells saw more improvements in heart health than another group of patients who were given the standard treatments for heart failure.

The stem cell group's hearts were able to pump more robustly and the patients showed improvements in physical fitness, such as being able to walk longer distances than the patients who didn't receive the cells.

Dr. Andre Terzic, who led the research and is director of Mayo's Center for Regenerative Medicine, said it is the first published study in which smart stem cells were tested on humans.

"I think it's an exciting time where regenerative medicine is no longer science fiction but it's increasingly becoming considered as a viable option for our patients, in particular the patients [who] have many unmet needs that current therapies cannot address," Terzic said.

Terzic said the treatment will be tested on a group of 300 patients before researchers ask federal regulators to approve it, but he said he is hopeful because there were no patients in the current study who saw negative results. The study is published in the Journal of the American College of Cardiology.

Terzic said he also thinks the concept can be applied to other conditions.

"It will be, for example, fantastic to see cells instructed to be more neuron-like, to maybe go after some of the neurological disorders, or to be more bone-like to help an orthopedic surgery and so on," he said.

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Mayo: 'Smart' stem cells for heart failure patients

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‘Smart’ stem cells repair damage from heart failure

Posted: April 11, 2013 at 11:45 pm

Washington, April 11 : Researchers have found that therapy with cardiopoietic (cardiogenically-instructed) or "smart" stem cells can improve heart health for people suffering from heart failure.

This is the first application in patients of lineage-guided stem cells for targeted regeneration of a failing organ, paving the way to development of next generation regenerative medicine solutions.

The multi-center, randomized Cardiopoietic stem cell therapy in heart failure (C-CURE) trial involved heart failure patients from Belgium, Switzerland and Serbia.

Patients in the control group received standard care for heart failure in accordance with established guidelines. Patients in the cell therapy arm received, in addition to standard care, cardiopoietic stem cells - a first-in-class biotherapeutic. In this process, bone marrow was harvested from the top of the patient's hip, and isolated stem cells were treated with a protein cocktail to replicate natural cues of heart development.

Derived cardiopoietic stem cells were then injected into the patient's heart.

"The cells underwent an innovative treatment to optimize their repair capacity," said Andre Terzic, M.D., Ph.D., study senior author and director of the Mayo Clinic Center for Regenerative Medicine.

"This study helps us move beyond the science fiction notion of stem cell research, providing clinical evidence for a new approach in cardiovascular regenerative medicine," the researcher stated.

Every patient in the stem cell treatment group improved. Heart pumping function improved in each patient within six months following cardiopoietic stem cell treatment. In addition, patients experienced improved fitness and were able to walk longer distances than before stem cell therapy.

"The benefit to patients who received cardiopoietic stem cell therapy was significant," Dr. Terzic said.

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Stem cells boom in vet clinics

Posted: April 11, 2013 at 11:45 pm

A horse is given an injection of stem cells in a bid to promote healing in a tendon injury.

Lauren Schnabel/Jessica Cross/Cornell Univ.

Patients seeking unproven stem-cell therapies in the United States often run up against government restrictions. But Vintage Vinty Mark of Lovettsville, Virginia, had no difficulty getting such injections to treat an injured tendon in his leg. The leg improved dramatically, and Vinty went back to training to be a racehorse.

New guidance from the US Food and Drug Administration (FDA) could, however, soon rein in veterinary uses of stem cells, a practice that has exploded in the United States over the past decade, even though most therapies are unproven. Many researchers and veterinarians say that the guidance, a draft of which the agency plans to issue by the end of the year, is overdue. But others worry that FDA interference could hamper research that could benefit animals and their human companions.

In the absence of clear regulations, the industry has burgeoned. Vet-Stem, a company based in Poway, California, has provided stem-cell treatments to more than 5,000 horses, 4,300 dogs and 120 cats since treating its first patient in 2004. Kits provided by MediVet America, based in Nicholasville, Kentucky, have been used to produce stem-cell injections for more than 10,000 horses since 2010. University veterinary departments, independently or through spin-off companies, have offered such services to thousands more animals. Veterinarians send patients tissue samples to the centres to have cells extracted or, increasingly, turn to kits that allow them to extract the cells in-house.

Stem cells are most often used to treat horses, dogs and cats, but clinicians have also sought to use them to repair a lumbar fracture in a Bengal tiger and arthritis in pigs. Researchers have also found stem cells in the fat of bottlenose dolphins, raising hopes for treating the marine-mammal versions of liver disease and type 2 diabetes. Theres not a large vet practice thats not using them, says Wesley Sutter, a veterinarian at Lexington Equine Surgery and Sports Medicine in Kentucky. Some claim [the treatment] cures everything.

Many veterinarians offer unproven stem-cell therapies to satisfy demanding customers, says Dori Borjesson, who specializes in veterinary medicine at the University of California, Davis. Clinicians are sucked into giving treatment even when theres not research to back up uses, she says.

Like the treatments sought by humans, most of those used in animals involve mesenchymal stem cells (MSCs), which can mature into a wide variety of cell types, including bone and cartilage, and have been shown to have anti-inflammatory and other beneficial effects. MSCs are extracted from fat or bone marrow and can be cultured or prepared for injection in concentrated form.

The FDAs position on the use of MSCs in humans is clear. It says that the cells are drugs and therefore must be proved safe and effective before they can be used in treatment, except under certain conditions. No MSC treatments have been approved. But the FDA has different regulations for veterinary medicine, and these do not clearly address MSCs. The agency has not approved any veterinary stem-cell therapies, but neither has it cracked down on any. This is in stark contrast to its high-profile actions against purveyors of unproven human stem-cell treatments, such as Celltex Therapeutics of Sugar Land, Texas,which treated patients with MSCs until the FDA stepped in last September.

That doesnt mean that the agency is not concerned, says Lynne Boxer, a veterinary medical officer in the FDAs Office of New Animal Drug Evaluation in Rockville, Maryland. As with any type of drug product, there are risks and benefits, she says. With stem cells, there is the potential for disease transmission and tumour formation. She declines, however, to say whether current practices are against FDA rules, or to elaborate on what the new draft guidance is likely to contain.

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StemCells, Inc. Enters Agreement to Receive $19.3 Million From California Institute for Regenerative Medicine to Help …

Posted: April 11, 2013 at 11:45 pm

NEWARK, Calif., April 11, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc. (STEM) today announced that it has entered into an agreement with the California Institute for Regenerative Medicine (CIRM) under which CIRM will provide approximately $19.3 million to help fund preclinical development and IND-enabling activities of the Company's proprietary HuCNS-SC(R) product candidate (purified human neural stem cells) for Alzheimer's disease. The funding, which will be in the form of a forgivable loan, was awarded under CIRM's Disease Team Therapy Development Award program (RFA 10-05) in September 2012. The goal of the research will be to file an Investigational New Drug (IND) application with the U.S. Food and Drug Administration within four years.

"With CIRM's support, we are now able to lay the groundwork that could result in the world's first neural stem cell trial in Alzheimer's patients," commented Martin McGlynn, President and CEO of StemCells, Inc. "Currently, there are no good treatment options for Alzheimer's patients, and there aren't any on the horizon, so it is clear that the field could benefit from creative approaches to this devastating and challenging disease. Our collaborators at UC Irvine have provided a compelling preclinical rationale to test the utility of our cells to restore memory in patients afflicted with this deadly condition."

StemCells, Inc. will evaluate its HuCNS-SC cells as a potential therapeutic in Alzheimer's disease in collaboration with researchers at the University of California, Irvine (UCI) led by Frank LaFerla, Ph.D., a world-renowned researcher in the field, and Matthew Blurton-Jones, Ph.D. Dr. LaFerla is Director of the Institute for Memory Impairments and Neurological Disorders (UCI MIND), and Chancellor's Professor, Neurobiology and Behavior. Dr. Blurton-Jones is Assistant Professor, Neurobiology and Behavior, at UCI.

In July 2012, Dr. Blurton-Jones presented data at the Alzheimer's Association Annual Meeting demonstrating that the Company's neural stem cells restored memory and significantly enhanced synaptic function in two animal models relevant to Alzheimer's disease. Importantly, these results did not require reduction in beta amyloid or tau that accumulates in the brains of patients with Alzheimer's disease and account for the pathological hallmarks of the disease.

Terms and Conditions of the Loan

Loan funds are expected to be disbursed periodically over the four-year project period, with disbursements subject to a number of preconditions, including the achievement of certain progress milestones and compliance with certain financial covenants. The term of the loan is ten years, but may be extended under certain circumstances. The loan is unsecured and will bear interest at the one year LIBOR rate plus two percent; however, the interest rate will increase by one percent each year after year five. The loan is forgivable, such that the Company's obligation to repay the loan will be contingent upon the success of HuCNS-SC cells in Alzheimer's disease. No warrants will be issued in connection with the loan, but the Company will owe various success milestone payments in the event of the product's commercial success.

About Alzheimer's Disease

Alzheimer's disease is a progressive, fatal neurodegenerative disorder that results in loss of memory and cognitive function. Today there is no cure or effective treatment option for patients afflicted by Alzheimer's disease. According to the Alzheimer's Association, approximately 5.4 million Americans have Alzheimer's disease, including nearly half of people aged 85 and older. The prevalence of Alzheimer's disease is expected to increase rapidly as a result of the country's aging population.

About CIRM

CIRM was established in November 2004 with the passage of Proposition 71, the California Stem Cell Research and Cures Act. The statewide ballot measure, which provided $3 billion in funding for stem cell research at California universities and research institutions, was overwhelmingly approved by voters, and called for the establishment of an entity to make grants and provide loans for stem cell research, research facilities, and other vital research opportunities. A list of grants and loans awarded to date may be seen here: http://www.cirm.ca.gov/for-researchers/researchfunding.

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Vatican Conference Hopes to Promote Truth on Adult Stem Cell Therapy

Posted: April 11, 2013 at 11:42 pm

Doctors, Patients Speak on Personal Experiences Vatican City, April 11, 2013 (Zenit.org) Junno Arocho Esteves | 398 hits

During todays first session of the Second International Vatican Adult Stem Cell Conference, scientists, doctors and patients had an opportunity to share not only the advances in adult stem cell research, but also the potential it has to transform modern day health care.

The ethical debate on the use of embryonic stem cells has, according to Dr. Robin Smith, stifled the advances made in adult stem cells, which are derived from adult tissue samples. Dr. Smith serves as president of the Stem for Life Foundation as well as CEO of NeoStem, a leading developer in cellular therapy.

Stem Cell Therapy, especially using cultivated adult stem cells , can be used to regenerate dying tissue in the body of a person suffering debilitating diseases, such as Alzheimers, Parkinsons, or Multiple Sclerosis (MS).

In November 2001, we kicked of the first Stem Cell Conference. Since then, the entire world has awakened.

By improving the clinical outcomes, we can save hundreds of millions of lives, she said. We're not talking about medications, she continued. Were talking about repairing the heart with adult stem cells. Re-inserting these cells into a damaged organ is turning back the clock. In just 17 months, we have seen stunning advancements in leukemia treatments.

The work in stem cell research has only begun to be understood. The last conference did not have panels that discussed the benefits of cellular therapy on MS and diabetes. Dr. Smith stated that in the United States, $245 billion is spent on managing diabetes, which can cause blindness, stroke and amputations which is only getting worse.

Cellular therapy has the potential to rewrite the history of this disease, she said. Adult stem cells is something we can all agree upon; they are ethically pure. We can grasp whats inside of us and introduce them into the body.

The purpose of the conference, she concluded, was meant to inspire change and to promote the truth and promise behind stem cell science. We hope to show that you no longer have to choose between science and faith.

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ADC Data from Seattle Genetics

Posted: April 11, 2013 at 10:44 pm

Seattle Genetics Inc. (SGEN) recently presented data on its antibody-drug conjugate (ADC) candidates at the annual meeting of the American Association for Cancer Research (:AACR).

Preclinical data on SGN-CD33A showed significant antitumor activity in acute myeloid leukemia (:AML) models. Seattle Genetics intends to file an investigational new drug (IND) application and start a phase I study in 2013.

Another candidate, SGN-LIV1A, showed encouraging pre-clinical data for breast cancer. Seattle Genetics will file an IND application for SGN-LIV1A as well and start a phase I study in 2013 for breast cancer.

Seattle Genetics sole marketed ADC product is Adcetris. Adcetris is used for the treatment of patients with Hodgkin's lymphoma (HL) after failure of autologous stem cell transplant (:ASCT) or after failure of at least two prior multi-agent chemotherapy regimens in patients who are not suitable for ASCT. Adcetris is also approved for the treatment of systemic anaplastic large cell lymphoma (sALCL) after failure of at least one multi-agent chemotherapy regimen.

Adcetris was approved by the US Food and Drug Administration (:FDA) in Aug 2011, got EU approval in Oct 2012 and marketing authorization in Canada in Feb 2013.

ADCs have been attracting a lot of interest of late with major companies entering into collaborations. Seattle Genetics has collaborations with companies like Roche Holding AG's (RHHBY) Genentech for the development of ADCs.

A few days back, Astellas Pharma, Inc. (ALPMY) announced a deal with Ambrx Inc. for the discovery and development of novel ADCs.

Seattle Genetics carries a Zacks Rank #3 (Hold). Right now Cleveland BioLabs, Inc. (CBLI) looks more attractive with a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on SGEN

Read the Full Research Report on RHHBY

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StemCells, Inc., Nails Down Controversial, $19 Million Award from California Stem Cell Agency

Posted: April 11, 2013 at 5:31 pm

The stock price of StemCells, Inc.,
price today jumped as much as 9 percent after the company disclosed
it had finally concluded an agreement with the California stem cell
agency for a $19.3 million forgivable loan for research twice rejected by the agency's scientific reviewers..

The stem cell agency governing board seven months ago approved the loan to the Newark, Ca., firm. But the
cash was withheld until the financially strapped company could
demonstrate that it could match the size of the loan, as promised in
its application.
The StemCells, Inc., (SCI) application
was nixed two times in 2012 by the agency's scientific reviewers who gave it a
score of 61. In a controversial move, the 29-member board approved the award in early September on a 7-5 vote after former agency
chairman Robert Klein intervened publicly on behalf of the firm. It was the first time that Klein had lobbied the board publicly on behalf of an application. It was also the first time that the board
approved an application that was rejected twice by its reviewers, a
panel of internationally recognized stem cell scientists.
In a press release, Martin McGlynn,
CEO of StemCells, Inc., said,

"With CIRM's support, we are now
able to lay the groundwork that could result in the world's first
neural stem cell trial in Alzheimer's patients."

Both the company and the $3 billion
state research agency were tight-lipped about the nature of the
matching funds from the company, which reported losses of $28.5
million in 2012 on revenues of $1.4 million.
In a brief response to questions from the
California Stem Cell Report, McGlynn said, 

 “At this time, we
do not intend to elaborate any further on the contents of our press
releases or public filings pertaining to the SVB (Silicon Valley Bank) or CIRM(the stem cell agency) loans.”

Earlier this week, the company reported receiving a $10 million loan from Silicon Valley Bank. Both McGlynn
and the stem cell agency did not answer a question about whether
those funds are being used to back the award from California
taxpayers.
The agency confirmed that the firm was
providing $19.3 million in matching resources. But Kevin McCormack,
senior director of public communications, did not provide any
specifics on the nature of the match. He only said,

“The matching  requires
them to demonstrate they have enough funds necessary to
fund SCI’s share going forward as well as their own
operations and other commitments.”

The award was originally for $20
million. We have queried the agency about the smaller figure
announced today.
The company's stock price rose as high as $1.87 earlier today after closing at $1.71 yesterday. It stood at
$1.77 at the time of this writing. Its 52 week high is $2.67, and its
52 week low is $0.59. The loan from Silicon Valley Bank gives the
bank warrants to purchase 293,531 shares of the company at $1.70 over
the next 10 years.
The 10-year loan from CIRM is low risk for the
company, which said its “obligation to repay the loan will be
contingent upon the success” of the research. If a product is
developed, it will take years before it could hit the market.
The award to StemCells, Inc., put
the stem cell agency in a touchy situation involving the company's decision last month to reject an additional $20 million award from
the agency.( It was the first time a recipient has rejected an award.) Neither the company nor the agency would give a reason for
the rejection of the loan for a spinal injury project . However, the
award also required a $20 million match, which undoubtedly tested the company's resources.
The spinal injury application was
scored at 79 by agency reviewers and was routinely approved by the
board. With its withdrawal by the company, the agency, which prides
itself on funding only the best science, was left supporting research
(StemCells, Inc.'s Alzheimer's project) judged significantly inferior
by reviewers with its score of 61.
In response to a question about that
situation, CIRM's McCormack said,

“Our goal is to always fund the best,
most promising science. This is not the first time that our board has
voted to fund a project that the Grants Review Group had not
recommended (this has happened in around 2% of cases) The board did
so for a number of reasons, not the least of which is that this was
the first disease team application that had a goal of  moving a
promising stem cell therapy for Alzheimer's towards clinical
trials.”

The round in question, however, had another application dealing with Alzheimer's which was scored at 63,
two points higher than the one from StemCells, Inc. Reviewers also did not recommend funding that application.
The action last September by the
agency board came only after it publicly said the funds would not be
distributed until the StemCells, Inc., could show it could provide
the match, still another first for the agency.
The award triggered a column in
the Los Angeles Times by Pulitzer Prize winning writer Michael
Hiltzik
, who said in October that  the
process was “redolent of cronyism.”
 He said a “charmed
relationship” existed among StemCells, Inc., its “powerful
friends” and the stem cell agency.
StemCells, Inc., was founded by
Stanford researcher Irv Weissman, who was a major fundraiser for
Proposition 71, which created the stem cell agency in 2004. Klein
headed the ballot campaign, which spent more than $30 million to win
voter approval. Weissman sits on board of directors of StemCells,
Inc., and holds 124,608 shares in the firm, including 8,630 he reported this month receiving.

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