StemCells, Inc. Reports First Quarter 2012 Financial Results and Provides Business Update

NEWARK, Calif., May 10, 2012 (GLOBE NEWSWIRE) -- StemCells, Inc. (Nasdaq:STEM - News), a leading stem cell company developing and commercializing novel cell-based therapeutics and tools for use in stem cell-based research and drug discovery, today reported financial results for the first quarter ended March 31, 2012 and provided a business update.

"The first quarter of 2012 turned out to be pivotal in the Company's pursuit of cell-based therapeutics for a broad array of CNS disorders," said Martin McGlynn, President and CEO of StemCells, Inc. "Data from our Phase I trial completed in February, which was designed to evaluate the safety and preliminary efficacy of our proprietary HuCNS-SC(R) neural stem cells in a rare myelination disorder, provided us with the clinical breakthrough that we had been seeking. We have now established proof of principle that our cells are capable of myelinating nerve axons in an appropriate, progressive and durable way in the brains of patients with a severe myelination disorder. Moreover, we observed measurable gains in motor and/or cognitive function in three of the four patients, while the fourth remained clinically stable. We believe this is a departure from the natural history of this fatal disease. This is great news for the PMD community and in due course we will meet with the FDA to discuss the conduct of a controlled Phase II study. The results of the study should also provide encouragement to the large community of patients, caregivers and clinicians dealing with more common myelination disorders, such as multiple sclerosis and cerebral palsy. We plan to meet with experts to help us develop a strategy to quickly and efficiently evaluate our cells in these more common myelination disorders."

"It remains our belief," continued Mr. McGlynn, "that the best pathway for growing shareholder value is for the Company to continue generating meaningful clinical data for our HuCNS-SC program in a thoughtful, cost effective manner. As our financial results show, we are carefully controlling our expenses and our cash burn. And as our PMD trial data shows, meaningful data from our extensive and expanding clinical development program has begun to emerge."

First Quarter and Recent Business Highlights

Therapeutic Product Development

Tools and Technologies Programs

Other Business Activities

First Quarter Financial Results

Revenue from product sales in the first quarter of 2012 was $271,000, an 82% increase over the first quarter of 2011. This growth was driven by increased unit volumes in our SC Proven media and reagents business. Revenue from licensing agreements and grants in the first quarter of 2012 was $373,000, due mainly to receipt of fees from a license agreement with genOway.

Research and development expenses were 29% lower in the first quarter of 2012 compared to the same period in 2011, while selling, general and administrative expenses declined by 7%. The significant reduction in operating expenses was primarily attributable to the reduction in workforce effected in May 2011, relocation of our corporate headquarters in July 2011 and other cost containment measures.

Read the rest here:
StemCells, Inc. Reports First Quarter 2012 Financial Results and Provides Business Update